Seoul prime office rents up 4.4% in Q3

The rental growth slowed across all major districts.

According to data from Savills, in Q3/2024, the average rent for Seoul prime offices was recorded at KRW120,300/py. By district, rents stood at KRW124,900/py in the CBD, KRW122,500/py in GBD, and KRW106,700/ py in YBD. 

“The average rent-free period by district was estimated at 0.3 to 1.0 months per year, similar to or slightly lower than the previous quarter, as the landlord-favorable market conditions persisted,” the analyst said.

Here’s more from Savills:

Rents for Seoul prime offices increased by 4.4% YoY, with the rate of growth slowing across all districts. This deceleration is attributed to low vacancy rates and limited tenant movement, as tenants face increased financial pressure from continuous rent hikes, making new lease agreements difficult. 

Meanwhile, the average maintenance fee for Seoul prime offices was reported at KRW46,400/ py. By district, the CBD recorded KRW 48,300/py, GBD KRW44,300/py, and YBD KRW 45,400/py. 

The average maintenance fee for Seoul prime offices rose by 2.2% YoY, a slower increase compared to the rent growth rate but still exceeding the 1.6% consumer price inflation announced by the BoK in September. By district, maintenance fees increased by 1.9% in the CBD, 2.1% in GBD, and 3.1% in YBD.