A New Equilibrium for the Greater Seoul Grade A Logistics Market

The supply of Greater Seoul Grade A logistics centers increased dramatically as Korea exited the COVID-19 pandemic in 2022. Since then, oversupply exceeding demand and indiscriminate development has led to high vacancy.

After peaking in 2024, vacancy recently commenced a downward trend. In line with the change in market dynamics, foreign investors who have observed the drop in new supply are now turning more acquisitive.

To accurately gauge the future supply of Greater Seoul Grade A logistics space, CBRE tracked the status of 172 pipeline projects awaiting the commencement of construction for over one year, as of August 2025. Based on these findings, CBRE will assess whether the market's current oversupply has been resolved and will forecast how the market can achieve stable growth.