Figures

Seoul Figures Q4 2023

Logistics deals set new record despite overall decline in investment volume

February 14, 2024 5 Minute Read

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OFFICE

Tight availability in major business districts led to a decline in new leasing activity over the quarter, pulling down full-year net absorption to 77,670 sq. m., just 20% of the previous year’s figure. Average face rents continued to grow, reaching KRW 34,472 per sq. m., up 1.6% from Q3 2023.

 

RETAIL

Major high streets continued to report an increase in leasing activity, especially in areas where the floating population is rising. Amid an increase in the number of foreigners visiting Myeong-dong, more retailers are remodeling interior of existing stores and opening new stores.

 

LOGISTICS

E-commerce and 3PLs were the main demand drivers in Q4 2023, while some leasing activity was also observed in the manufacturing and F&B sectors. Average Grade A logistics rents stood at KRW 34,591 per pyeong at year’s end, up about 2% y-o-y. Substantial rental growths in rent were observed in Anseong and Yeoju along with the supply of new prime assets.

 

INVESTMENT

Seoul commercial real estate investment volume totalled KRW 3.5 trillion in Q4 2023, bringing full-year transaction volume to KRW 14.8 trillion, a 20% decline from the previous year. A fall in transaction volume was observed across all sectors except logistics.