CBD move-ins boost Seoul office absorption in Q1

Net takeup hit over 7,500 pyeong during the quarter.

Seoul's office market recorded net take-up of 7,502 pyeong in Q1 2026, largely driven by occupier move-ins across the CBD, according to JLL.

The firm said NH's occupation of NH NongHyup Tower helped support CBD demand, while Yeouido and Gangnam posted negative net absorption of 2,790 pyeong and 1,467 pyeong respectively due to tenant departures. Major leasing transactions included Hanwha Ocean taking seven floors at Daishin Finance Center and Encar.com relocating within the CBD to Grand Central.

Overall vacancy declined 39 basis points quarter-on-quarter to 4.3%, with the CBD recording the strongest improvement, falling 159 basis points to 6.9%. No new office buildings were added during the quarter.

JLL reported that net effective rents increased 1.1% quarter-on-quarter and 4.5% year-on-year to KRW149,516 per pyeong. Office investment volume reached KRW3.4 trillion, led by the approximately KRW1.3 trillion acquisition of Seoul Square by Korea Investment Real Asset Management.

According to JLL, upcoming CBD supply is expected to place upward pressure on vacancy and moderate rental growth, while investor demand may increasingly favour Yeouido and Gangnam amid concerns about CBD oversupply.