Seoul CBD set for major office supply wave through 2032

More than 2.5m sqm of prime space will be completed over the next seven years.

Seoul’s central business district (CBD) is poised for one of its largest office supply expansions in decades, with more than 2.5 million square metres of new prime office space scheduled for completion between 2026 and 2032, according to a new analysis by Savills Korea.

In its latest market review, Savills Korea identified 26 projects in the CBD that are expected to qualify as prime office developments, representing a total gross floor area (GFA) of approximately 2.56 million square metres. The pipeline equates to an average annual supply of around 365,000 square metres over seven years and is equivalent to roughly 25% of the CBD’s existing prime office stock, highlighting the scale of transformation underway.

Savills noted that 11 of the 26 projects are classified as trophy assets, each exceeding 99,000 square metres of GFA. This would effectively double the current number of trophy office buildings in the CBD once completed. Importantly, market risk appears partially mitigated, as 17 projects—accounting for about 1.78 million square metres—have reportedly already secured project financing, Savills said.

Urban renewal driving supply concentration

According to Savills Korea, upcoming supply will be highly concentrated in specific submarkets, largely reflecting Seoul’s urban renewal strategy.

The City Hall–Euljiro area is set to dominate future development, accounting for 53% of total new supply. Savills attributed this concentration to the designation of the Sewoon and Euljiro-3ga districts as Urban Renewal Acceleration Districts, which has helped unlock large-scale redevelopment opportunities in historically dense but aging precincts.

The Seoul Station–Namdaemun area represents the second-largest share, contributing approximately 29% of the pipeline. This includes the Seoul Station Northern Area development, as well as multiple projects in Yang-dong and Bongnae-dong, areas that Savills said are benefiting from improved transport connectivity and renewed investor interest.

The remaining 18% of new supply is expected to be delivered in the Jongno–Gwanghwamun area, reinforcing its role as a key administrative and corporate hub within the CBD.

Supply timing skewed toward late decade

Savills Korea emphasised that the timing of delivery is uneven, with the majority of supply back-loaded toward the end of the decade.

Only 13% of total new supply is expected to be completed between 2026 and 2028, while more than half—approximately 1.3 million square metres—is scheduled for delivery in 2029 alone, according to Savills’ estimates. The remainder will come online post-2030, extending the supply cycle into the early 2030s.

Given this distribution, Savills said it will assess the pipeline across three distinct phases: 2026–2028, 2029, and post-2030, reflecting the different market dynamics likely to emerge in each period.

Market implications

Savills Korea noted that the scale and concentration of supply could have significant implications for tenant competition, rental performance, and asset repositioning strategies within the CBD. While the delivery of modern, large-scale offices is expected to enhance Seoul’s competitiveness as a regional business hub, Savills cautioned that the 2029 supply peak will be a critical period for both landlords and occupiers.

“The upcoming pipeline represents a structural shift in the CBD office landscape,” Savills Korea said, adding that market participants will need to closely monitor leasing demand, absorption capacity, and capital market conditions as projects progress toward completion.