Seoul CBD office supply in 2029 likely to fall short of projections

Only 56% of projected 2029 CBD office supply likely to hit leasing market.

The volume of new prime office space entering Seoul’s central business district (CBD) in 2029 is likely to fall well below earlier projections, as project delays, pre-leasing commitments and owner-occupation reduce the amount of space available to the leasing market, according to Savills Korea.

Savills said that while 2029 is currently scheduled to be the peak year for new office completions in the CBD, several structural factors are expected to materially reduce effective net supply. Prime office projects planned for delivery in 2029 are spread across Seosomun, Euljiro, Sewoon, Gwanghwamun and the Seoul Station area, collectively accounting for around half of all projects scheduled for completion by 2032, Savills noted.

“If all projects were delivered as planned, the scale of supply in 2029 could place upward pressure on CBD vacancy rates,” Savills said. “However, a combination of financing delays and committed space is likely to significantly reduce the actual volume entering the leasing market.”

According to Savills Korea, approximately 32% of the 2029 pipeline—equivalent to about 420,000 square metres—had yet to secure project financing as of September 2025, increasing the likelihood that a meaningful portion of supply will be deferred into 2030 or later.

In addition, Savills estimates that around 153,000 square metres of space scheduled for completion in 2029 has already been removed from the leasing pool due to pre-leasing agreements and owner-occupation. Notable examples include Korean Re and JB Financial Group, which are set to occupy the Susong District 1-7 and Seosomun District 10 Urban Renewal Projects, respectively, as headquarters buildings.

Taking these factors into account, Savills estimates that the effective new supply entering the leasing market in 2029 will be approximately 726,000 square metres, representing just 56% of the original projection of around 1.3 million square metres.

Post-2030 pipeline remains uncertain

Looking beyond 2029, Savills cautioned that the office development pipeline from 2030 onwards remains highly provisional. As previously highlighted, Savills estimates that around one-third of projects initially scheduled for 2029 delivery are now expected to be pushed back to 2030 or later, largely due to difficulties in securing project financing.

Savills added that the post-2030 pipeline totals roughly 800,000 square metres, with the majority of projects concentrated in Bongnae-dong and Yang-dong. However, these developments are still in the early planning or pre-construction stages, making them particularly vulnerable to postponement amid continued market uncertainty and tighter financing conditions.

“As a result, visibility on post-2030 supply remains limited,” Savills said, noting that delays could further smooth the delivery profile of new CBD office space rather than result in a sharp oversupply.

Overall, Savills concluded that while 2029 is still expected to mark a significant year for new completions, the real impact on vacancy and leasing conditions is likely to be less severe than headline supply figures suggest, with timing slippage and committed space acting as key moderating factors.