Seoul office and logistics investments hit record highs in 2025

Logistics deals surged to KRW5.7 trillion during the year.

Seoul’s commercial real estate market closed 2025 with record-breaking transaction volumes, according to Savills.

Office investment reached approximately KRW6.4 trillion in Q4, bringing the annual total to KRW21.1 trillion—well above the previous 2021 record of KRW14.6 trillion. Key deals included Signature Tower, Heungkuk Life Insurance Sinmun-ro HQ, and Bundang Doosan Tower, many acquired to secure corporate headquarters. In the YBD, foreign investor PAG purchased City Plaza, marking the quarter’s only cross-border transaction.

Savills noted that with several deals nearing closure and increased liquidity from domestic institutional blind funds such as NPS and Korea Post, 2026 transaction volumes are expected to remain steady or see slight growth.

The logistics sector also gained momentum, with Q4 transactions totaling KRW2.14 trillion and a 2025 annual total of KRW5.71 trillion. A landmark deal saw KKR, in partnership with POBA and domestic investors, acquire Brookfield Cheongna Logistics Center for KRW1.03 trillion, setting a record price for a single logistics asset. Other notable transactions included M&G Real Estate and domestic investors acquiring Logis Valley Ansan for KRW512.3 billion, and Starwood Capital purchasing Logis Point Yeoju for KRW190.0 billion.

Savills highlighted that foreign investors remained active throughout 2025, while domestic financial players re-entered the logistics market. This renewed interest was supported by recovering leasing fundamentals, steady demand, and limited new supply, improving overall sentiment across the sector.