Seoul Figures Q1 2025

OFFICE

Seoul Grade A office vacancy was unchanged y-o-y at 2.6% in Q1 2025. Average face rents rose by 1.5% q-o-q to KRW 38,709 per sq. m. as selected landlords applied rental increases at the beginning of the year. Incentives remained low, with average rent-free periods set at below one month per year.

RETAIL

Cumulative national retail sales for the first two months of the year totalled KRW 103 trillion, a 0.9% y-o-y increase. Despite slow economic growth and high inflation, Chinese brands continue to enter the Korean market. Korean brands also continue to pursue overseas expansion.

LOGISTICS

Four new Grade A assets totaling 221,546 sq. m. were delivered in Q1 2025, with 30% of new stock absorbed upon completion. Leasing volume totalled 178,025 sq. m. Vacancy fell by 1%p q-o-q to 22%, with vacancy for dry and cold storage assets standing at 16% and 40%, respectively.

INVESTMENT

Commercial real estate investment volume reached KRW 7.0 trillion in Q1 2025, up 66% y-o-y and 34% q-o-q. Growth was driven by large-scale forward purchase office deals in the office sector and a gradual recovery in logistics investment.