Seoul’s 2025 office transaction volume on track to surpass 2021 peak

Transaction volumes reached a record KRW14.6 trillion in 2021.

According to a Savills report, Seoul’s office transaction volume reached approximately KRW5.9 trillion in Q3/2025, sustaining the positive momentum seen in Q2 when activity exceeded KRW5 trillion.

“Year-to-date volume stands at KRW14.3 trillion, and if ongoing deals close in Q4 as expected, total 2025 transaction volume is projected to surpass the previous peak of KRW14.6 trillion recorded in 2021, marking a new market high,” the report noted.

Here’s more from Savills:

Foreign investors, along with strategic owner-occupiers, increased their acquisition activity in the second half of the year. Three foreign-led transactions were completed in Q3, compared with only one in the first half of the year. The combined participation of strategic and financial investors contributed to the expansion of transaction volume during the quarter.

In the CBD, Aberdeen acquired Pacific Tower for KRW574 billion (KRW31.89 million/pyeong) via a share deal. The building offers strong lease stability and has been well maintained through refurbishments. There is potential for further rental growth to market levels, as well as capital appreciation supported by improving conditions in the surrounding area.

Dongkuk Steel repurchased Ferrum Tower from Samsung Life for KRW645.1 billion (KRW38.29 million/pyeong). The company had sold the property in 2015 under a sale-and-leaseback agreement but exercised its preemptive right to repurchase it, citing the need for a consolidated headquarters and stable rental income.

In the GBD, Pacific AMC acquired NC Tower 1 from NCSOFT for KRW443.5 billion (KRW47.43 million/pyeong). Located in the heart of Teheran-ro, the property attracted strong interest from strategic investors due to its prime location. The acquisition was made through a consortium with the Korea Scientists and Engineers Mutual Aid Association (SEMA), which plans to occupy the building. NCSOFT intends to reinvest the proceeds in developing its global RDI center in Pangyo.

The largest transaction of the quarter was Tech1, a trophy asset located in the core commercial area near Pangyo Station. Korea Investment Real Asset Management acquired the property from Mirae Asset Global Investments for KRW1.98 trillion (KRW33.22 million/pyeong). KakaoBank participated as a key investor, seeking to secure office space and allocate excess capital.

In Jamsil, BGO (BentallGreenOak) acquired Tower 730 for KRW869.4 billion (KRW35.6 million/pyeong) via a share deal. The asset, fully leased to Coupang, which occupies 19 floors, is considered highly stable. Although Coupang plans to relocate to Eastpole Tower in Gui-dong in 2026, Woowa Brothers is expected to take over the space, ensuring stable rental income.

In the DMC, Koramco AMC acquired Digital Dream Tower from Rifa AMC for KRW171 billion (KRW14.85 million/pyeong). The property, with a GFA of 38,000 sq m, is leased to LG HelloVision, CJ 4DPLEX, and various IT firms. The asset had been on the market since 2023, and the transaction was finalized after Koramco AMC secured investment from PAG, a Hong Kong-based AMC, as its investor.

As of Q3/2025, the estimated cap rate for Seoul’s prime office market edged down to the mid-to-high 4% range based on face rents, and to the low 4% range on an effective rent basis, reflecting tenant incentives such as rent-free periods. The average yield on five-year Treasury bond yields rose slightly to 2.65%, resulting in a cap rate spread of approximately 200 bps.