Gangnam rents overtake CBD for first time in Seoul office market

Q2 rents increased by 6.3% in the Gangnam Business District.

After six years without new prime office completions, Seoul's central business district (CBD) welcomed two new developments in the second quarter, while Gangnam Business District (GBD) overtook the CBD as the city's most expensive prime office market for the first time, according to Savills.

Savills said G1 Seoul, comprising 143,432 square metres, and Rene Square, with 60,387 square metres, were completed during Q2 2026. However, neither building was included in the latest vacancy analysis as active leasing is expected to begin next quarter.

According to Savills, G1 Seoul is being actively marketed to prospective tenants, while Rene Square is set to become the headquarters of the Serious Crimes Investigation Agency and its Seoul branch from October. Eul Tower is expected to complete by the end of 2026, with no additional prime office supply forecast for 2027.

Savills reported that average face rents across Seoul's prime office market rose to KRW131,300 per pyeong in Q2, representing annual growth of 4.9%.

The GBD recorded average rents of KRW136,200 per pyeong, narrowly surpassing the CBD at KRW135,200 per pyeong for the first time since Savills began tracking the market in 1997. Savills attributed the milestone to sustained tenant demand and a prolonged shortage of new supply. The Yeouido Business District (YBD) recorded average rents of KRW115,500 per pyeong, with rental growth accelerating as recently completed buildings continued leasing and stabilisation. Savills added that rents increased 4.5% in the CBD, 6.3% in the GBD, and 3.6% in the YBD.

Average maintenance fees also increased 3.0% year-on-year to KRW49,000 per pyeong, with Savills noting growth remained broadly in line with inflation.