In 2022, newly supplied logistics centers in the Greater Seoul Area with a total gross floor area of 16,500 sqm or more reached a record high of 3.95 million sqm. However, transaction volume decreased by over 20% YoY to KRW 5.6 trillion, marking the first downward trend since 2015. Due to concerns of oversupply, rising interest rates, and shrinking transaction volumes, the value of logistics center assets has declined and cap rates are expected to remain flat or increase in 2023.
In the past, the logistics market in the Greater Busan Area revolved around the port for importing and exporting cargo, as well as storing agricultural and marine products. Demand grew around the Gyeongbu Expressway due to its accessibility to hinterland, and the availability of manpower to operate logistics centers. Consequently, e-commerce companies that have recently extended their early morning and same-day delivery services nationwide are now entering the Greater Busan Area.