Seoul office transaction volume hits highest quarterly volume in four years

Office transaction volume hit KRW5.4 trillion in Q2 2025.

In a recent report, JLL revealed that Seoul’s net effective rent for Grade A offices was KRW 145,606 per pyeong, up 1.8% q-o-q, as the CBD and Gangnam both saw rent rises, reaching KRW 152,138 and KRW 156,441, respectively. Yeouido’s rent dropped 0.2% q-o-q, to KRW 123,610 per pyeong due to the expansion of rent-free periods.

“Total office transaction volume reached around KRW 5.4 trillion, the highest quarterly volume since Q2 2021. The most notable transaction was IGIS Asset Management’s purchase of SI Tower in the Gangnam from KB Investment Management for KRW 897.1 billion,” the report added.

Here’s more from JLL:

Net absorption reverted to the negative range, recording -7,500 pyeong, as some major tenants vacated space in the CBD, such as HK Inno.N from 101 Pine Avenue A. Yeouido and Gangnam both saw positive net take-up of 1,500 pyeong and 1,300 pyeong, respectively.

The most notable leasing deal in the quarter was Jongno-gu Office leasing six floors in K-Twin Tower B, taking the space previously occupied by SKC. In Gangnam, following its recent refurbishment, ICON Samseong secured the Bank of Korea as a tenant across three floors.

Only the CBD shows rising vacancy as several buildings see some anchor tenant departures

In Q2 2025, Gangnam welcomed a new Grade B office building: OPUS 459 was completed on the former site of the Baekam Building, adding an estimated office GFA of 6,200 pyeong to the market inventory.

Seoul’s vacancy rate rose by 38 bps q-o-q, to 3.2%. The CBD saw increased vacancies as tenants like Tmap Mobility left for newer offices within the district, thereby reaching 4.4%. Yeouido and Gangnam vacancy rates contracted to 4.0% and 1.2%, respectively.

Outlook: Domestic capital is expected to bolster office investment activity

As liquidity slowly improves amid an improved financial environment with low rates, medium-sized office deals are likely to attract more investors due to their manageable investment scale and stable NOI. Those in Gangnam and Yeouido will capture greater interest.

Domestic investors to become more bullish as local companies like NPS and Korea Post, who recently selected fund managers, prepare to invest in the core office sector. The participation of strategic investors for owner occupation is likely to be evident as well.