Seoul prime office face rents rise by 5.7% in Q2

The Gangnam Business District recorded the highest rental growth.

According to a Savills report, Seoul prime office rents averaged KRW119,600 per pyeong in Q2 2024. By district, the average prime office rents were KRW124,700 per pyeong for CBD, KRW121,000 per pyeong for GBD, and KRW106,200 per pyeong for YBD. 

Rent-free periods offered to tenants were largely similar to the previous quarter at 0.5-1.5 months per year. 

Here’s more from Savills:

The average year-on-year Q2 rental growth for Seoul prime offices hit 5.7%, more than doubling the CPI growth rate (2.4%, as of June). CBD saw a 4.3% increase, GBD 7.3%, and YBD 6.0%. Notably, GBD showed the highest average rent increase among major districts, driven by rapid absorption of vacancies by expansions or move-in from new tenants. 

Maintenance fees were up by 3.0%, also above the latest reported CPI growth rate. By district, CBD increased by 2.6%, GBD by 3.3%, and YBD by 3.1%. Maintenance fees are forecast to remain steady in the near-term until 2025 due to the lack of significant new prime office supply.