Seoul office investment volumes surpass 2021 peak

The total investment reached a record KRW21.1 trillion in 2025.

Seoul’s office investment market reached a record KRW21.1 trillion in 2025, marking an 82% year-on-year increase and surpassing the previous peak set in 2021, according to Savills.

Savills said the surge was driven by strong turnover of prime assets, even as total transaction volumes declined in number from 89 deals in 2021 to 54 in 2025. Over the same period, prime transactions increased from 10 to 18, with investment in prime offices more than doubling to KRW10.3 trillion.

The report highlighted the rapid growth of share-deal structures, which climbed to KRW6.9 trillion in 2025—more than four times the annual average recorded between 2021 and 2024—and accounted for 33% of total transaction volume.

Strategic investors and owner-occupiers also played a larger role in the market, with their share of total investment rising from 20% in 2021 to 49% in 2025. Savills noted that these buyers showed a strong preference for the Gangnam Business District (GBD), which accounted for 58% of transaction volume and 57% of deals among this group. Notably, 76% of these investors were existing occupiers within the same district, reflecting a focus on business continuity and location familiarity.

Foreign investment nearly doubled over the period, increasing from KRW1.1 trillion in 2021 to KRW2.1 trillion in 2025. However, its share remained below 10%, unchanged from 2024 and still under the 10-year average of 17%. According to Savills, overseas capital was primarily deployed in non-core areas such as DMC, Jamsil and the Southwest district, often through private transactions at competitive pricing.

Overall, Savills said the record performance in 2025 was underpinned by elevated prime asset turnover, wider adoption of share-deal structures and sustained demand from strategic and owner-occupier buyers, particularly for headquarters acquisitions.