Here’s an English summary of the 2025 H1 Seoul office vacancy market status

 

 

🏢 Seoul Office Market Overview – H1 2025

Overall Vacancy Rate:

• Reached 3.8% in Q1 2025, up by 1.3 percentage points from the previous quarter and nearly double the rate from a year earlier.

By Submarket:

• CBD (Central Business District): 3.04%
• GBD (Gangnam Business District): 3.4% (with over 10% in smaller buildings off main streets)
• YBD (Yeouido Business District): 2.41%

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📉 Key Drivers of Rising Vacancy

• Increased Supply: New developments, especially in areas like Magok, added significant new inventory.
• High Rents: Elevated leasing costs are pushing some tenants to downsize or relocate to suburban areas.
• Weaker Demand: Economic slowdown is reducing new leasing activity.

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🔮 Outlook

• Supply Decrease Expected: Between 2025 and 2027, annual new supply in Seoul and Bundang is projected to fall below the past 10-year average.
• Vacancy Stabilization: Lower new supply and redevelopment projects may bring vacancy rates down to a stable 3% range.
• Rent Pressures: As vacancy tightens, upward pressure on rents is anticipated.

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This suggests a transitional phase where short-term softness may be followed by stabilization and potential rent growth in key areas.