Korea Office Research

Savills Research & Consultancy aims to offer objective advice to clients in order to help them make well-informed real estate related decisions and realise pre-defined goals.

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Seoul office briefing

Seoul Office Briefing Q2 2017
18 August 2017

As the South Korean economy enjoyed continuing stability, Q2 for commercial leasing demand increased and investment activity continued to thrive.

 

Research search results: 36 found

 
Seoul Office Briefing Q4 2014

Seoul Office Briefing Q4 2014

10 February 2015

Despite the high vacancy rates in Yeouido and the CBD, the Seoul office market has attracted sustained interest from both domestic and  nternational investors. This is due to low interest rates and availability of properties which are forecast to benefit from future decreases in vacancy.

 
 
 
Seoul Office Briefing Q3 2013

Seoul Office Briefing Q3 2013

13 November 2014

Demand for leasing as well as the net absorption by district is different by type of business. The abundance of liquidity in the market is being driven by the lowering of interest rates by 25bp in October, following Bank of Korea's benchmark rate cut in August.

 
 
 
Seoul Office Briefing Q2 2014

Seoul Office Briefing Q2 2014

04 August 2014

Companies relocating their headquarters outside the city led to a decline in prime office demand in Seoul. With the provision of Three IFC, the vacancy rate rose by 2.6%p from the previous quarter.

 
 
 
Seoul Office Briefing Q1 2014

Seoul Office Briefing Q1 2014

25 April 2014

Amid growth in office demand from various industries, such as the construction, manufacturing and service sectors, average prime office vacancy rates declined by 1.5 percentage points. Neverthless, total transaction volumes fell from the same growth of 2013 with cap rates maintained in the low 5% range.

 
 
 
Seoul Office Briefing Q4 2013

Seoul Office Briefing Q4 2013

05 March 2014

This year witnessed the largest volume of new office supply in five years, with the exception of 2011. Total transactions amounted to KRW5.06 trillion in 2013 and the cap rate is estimated to be in the low 5% range.

 
 
 
Seoul Office Briefing Q3 2013

Seoul Office Briefing Q3 2013

16 November 2013

With the uneven distribution of openings and closures of branch offices by financial companies in major office districts, the CBD witnessed a decrease in demand, while both GBD and YBD enjoyed an increase in demand. Despite lease demand fluctuations, investors are showing a growing interest in blue-chip properties.

 
 
 
Seoul Office Briefing Q2 2013

Seoul Office Briefing Q2 2013

17 July 2013

Net absorption for Seoul prime office buildings fell into negative territory of 9,500 sq m in Q2/2013. The CBD saw a demand increase but the prime office vacancy rose by 10.7% as GBD tenants relocated to other areas and financial companies reduced their office space in YBD. The sales market was active, posting a transaction volume of KRW1.49 trillion with a cap rate estimated to be in the low 5% range.

 
 
 
Seoul Office Briefing Q1 2013

Seoul Office Briefing Q1 2013

26 April 2013

In Q1/2013, net absorption for Seoul prime office buildings was positive at 28,000 sq m, indicating an increase in demand. However, the vacancy rate also rose to 9.7% with the release of two new buildings. The case of sale and lease back has shown in Q1/2013. There is a possibility that the prime office cap rate will slide further from the current level if the benchmark interest rate and interest rates of real estate secured loans continue to fall.

 
 
 
Seoul Office Briefing Q3 2012

Seoul Office Briefing Q3 2012

01 November 2012

In Q3/2012, the Seoul office market demand increased, in contrast to the negative absorption recorded in Q2. Despite the increased demand, new office space completed in YBD pushed the Seoul prime office vacancy rate up to 9.4%. In Q3, the transaction volume was KRW1.5 trillion and the cap rate for prime offices was around the low 5%.

 
 
 
Seoul Office Briefing Q2 2012

Seoul Office Briefing Q2 2012

01 August 2012

Demand for prime office space in the CBD increased in the second quarter resulting in positive net absorption of 12,300 sq m. On the other hand, the GBD showed negative net absorption of 19,900 sq m largely due to tenant movement to secondary offices and other business districts. Thus, Seoul’s prime office vacancy rate increased to 8.9% from 7.3% last quarter, with cap rates forecast at sub -5% levels.

 
 
 

Key contacts

JoAnn Jieun Hong

JoAnn Jieun Hong

Director
Research & Consultancy

Savills Korea

+82 2 2124 4182

 

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