• Average rents in GBD reached KRW 136,200 per pyeong, surpassing CBD (KRW 135,200) for the first time

• Overall vacancy rate of Seoul prime offices remained stable at 4.2% despite new supply entering the market

• Investment activity remained selective, focusing on core assets and owner-occupier acquisitions

Seoul's Gangnam Business District (GBD) has overtaken the Central Business District (CBD) in nominal prime office rents for the first time on record. According to Savills Korea, this marks the first such occurrence since the firm began tracking the Seoul office market in 1997, reflecting sustained tenant demand in GBD alongside limited new supply over recent years.

According to the Q2 2026 Seoul Prime Office Market Report released by Savills Korea, the average nominal rent for Seoul prime office buildings reached KRW 131,300 per pyeong during the second quarter of 2026.

Among the major office districts, GBD recorded the highest average rent at KRW 136,200 per pyeong, followed by CBD at KRW 135,200 and YBD at KRW 115,500. GBD also posted the strongest annual rental growth among the three districts, with rents increasing 6.3% year-on-year.

GBD maintained the lowest vacancy rate among Seoul's major office districts at 1.7% for the second consecutive quarter. The district continued to benefit from robust leasing activity driven by tenant expansions and relocations, particularly from growth-oriented sectors such as beauty, technology and mobility. 

In CBD, vacancy rose modestly to 6.0% as major new prime office projects, including G1 Seoul and Le Meilleur Square, entered the market. The increase was largely attributable to newly completed supply being incorporated into the market, and vacancy levels are expected to gradually stabilise as leasing activity absorbs the additional space. 

The overall vacancy rate for Seoul's prime office market increased by 0.2 percentage points quarter-on-quarter to 4.2%. Net absorption remained negative at 11,600 square metres, marking the second consecutive quarter of decline, although available space in the market remains relatively limited.

On the investment side, market activity remained focused on high-quality assets with stable tenant profiles as well as owner-occupier acquisitions. Total office investment volume in Seoul reached approximately KRW 5.1 trillion during Q2 2026, including the transaction involving a stake in IFC Seoul. While this represented a 13% decline from the record-high transaction volume recorded in the same period last year, investor appetite for quality assets remained resilient. 

Yeouido's Hana Securities Building traded for approximately KRW 811.2 billion, achieving one of the highest price-per-pyeong levels ever recorded in YBD. Transactions involving major long-term leased assets, including Eulji Twin Tower and Emart Tower, were also completed during the quarter. Savills Korea expects investment activity to gain further momentum as funding conditions improve and capital from blind funds raised since 2025 gradually enters the market. 

Hong Ji-eun, Executive Director of Research & Consultancy at Savills Korea, said: "As new prime office supply expands the amount of available space in the market, tenant relocations and expansion-driven leasing activity are expected to become increasingly active. Against this backdrop, GBD continues to strengthen its position as Seoul's premier office district, supported by robust occupier demand and limited new supply."

Read Full Report: Link