Guess which Seoul district had the highest office rental growth in Q1

Rent hikes in remodeled assets drove the hike.

According to a Savills report, the average face rent for Seoul prime offices in Q1 2025 was KRW 123,000/py.

Among the three major business districts, rents in the CBD remained the highest at KRW 127,800/py, followed by GBD at KRW 124,900/py, and YBD at KRW 110,900/py.

Here’s more from Savills:

YBD posted the highest year-on-year rental growth, driven by rent hikes in remodeled assets, while rents in the CBD and GBD grew by 3.6% and 3.7% YoY, respectively, outpacing inflation.

Average rent-free periods remained consistent, up to one month per year, though some landlords facing prolonged high vacancy pressures (over 2–3 quarters or more) were willing to offer additional incentives.

The average management fee stood at KRW 47,100/py, up 2.3% y-o-y, closely tracking the March 2025 CPI increase of 2.1%. District-wise, the management fee was around KRW 49,000/py in the CBD, KRW 44,700/py in the GBD, and KRW 46,600/py in the YBD.