Seoul Q3 prime office rents climb 4.6%

Meanwhile, average office maintenance fees rose 2.9%.

The average face rent of prime offices in Seoul was KRW126,200/pyeong, according to data from a Savills report. By district, the average face rent was KRW131,000/pyeong in the CBD, KRW128,600/pyeong in the GBD, and KRW112,000/pyeong in the YBD.

“The free rent period remained range of 0.5 to 1.5 months per year at similar level of last quarter, but some of landlord facing high vacancies are willing to offer additional tenant incentives,” the report added.

Here’s more from Savills:

As of September, Seoul prime office rents rose by 4.6% YoY, more than double the inflation rate of 2.1%. By district, rental growth was recorded at 4.3% in the CBD, 5.0% in the GBD, and 4.9% in the YBD. This marks a 1.1pp increase from the previous quarter, largely driven by new leases signed at market rates in buildings that had long been fully occupied and previously under-rented.

The average maintenance fee for Seoul prime offices rose by 2.9% YoY with increases of 3.0% in the CBD, 2.5% in the GBD, and 3.3% in the YBD. Since Q4/2023, fee growth has consistently remained in the 2% range across districts. Both rent and maintenance fees are expected to continue outpacing inflation.