Seoul office vacancy rate set to climb in Q2

This is due to the completion of a major project in Q1.

The office vacancy rate in Seoul is projected to increase in Q2/2024 with the completion of Meritz Fire & Marine Insurance HQ, following TP Tower's supply in Q1/2024. 

According to Savills, despite move-outs, particularly in the blockchain-based technology sector, alongwith lease renewals and downward relocations of tenants with small spaces, the anticipated improvement in Korea’s economy and exports compared to the previous year suggests an increase in Seoul prime office lease demand in 2024. 

Here’s more from Savills:

CBD’s vacancy rate is forecast to rise in Q2/2024, mainly due to the completion of Meritz Fire & Marine Insurance HQ, despite discussions among Samsung Group affiliates relocating to Samsung Main Building and plans for various tenants to occupy small vacant areas at the Seoul Finance Center. 

For GBD, Shinsegae International and Nexon are anticipated to occupy large vacancies in Samsung Life Daechi Tower and Autoway Tower, respectively, in the upcoming quarter, contributing to a further decrease in the district’s vacancy rate. 

In YBD, the vacancy rate is projected to decrease with the move-in of Yuanta Securities into Anchor One Bldg., and the relocation of ShinhanSecurities toTPTower as the remodeling process of its HQ building commences.