Seoul Figures Q1 2024

OFFICE

Average Seoul Grade A office vacancy rose to 2.9% as of the end of Q1 2024. New absorption increased on a q-o-q basis to 33,088 sq. m. as several tenants took possession of new office space. Average face rents stood at KRW 36,390 per sq. m., representing growth of more than 2% in each of the three major districts.

RETAIL

Cumulative domestic retail sales amounted to KRW 83 trillion in February 2024, an increase of 2.3% compared to the same period last year. Particularly strong growth was observed for duty-free shop sales amid an increase in overseas travel. 

LOGISTICS

A total of 12 new Grade A logistics facilities providing 656,187 sq. m. of space were added this quarter. E-commerce platforms, which were the largest source of demand for Greater Seoul Grade A logistics space last year, largely due to Coupang’s major expansion, displayed divergent demand. 

INVESTMENT

Seoul commercial real estate investment volume totalled KRW 3.8 trillion, an increase of 12% y-o-y. Most transactions completed this quarter were driven by domestic investors. Office transaction volume amounted to KRW 2.8 trillion, which doubled y-o-y with large deal closings.