Seoul industrial transaction volumes record strong rebound in Q3

Thanks to landmark deals that were delayed from the prior quarter.

In Q3/2025, Savills noted in a report that the Seoul office investment market maintained a stable momentum, with transaction volumes exceeding KRW5 trillion, similar to the previous quarter.

With the completion of key transactions in submarkets, investment activity remained strong across all districts.

Here’s more from Savills:

Domestic investors, who led the office market in the first half of the year, remained active this quarter. Foreign investors also had a notable presence, with Aberdeen, PAG, and BGO completing office acquisitions. Additionally, the trend of corporations acquiring office assets persisted, driven not only by demand for headquarters space but also by efforts to enhance financial stability through rental income.

The benchmark rate has held steady at a relatively low 2.5% since May, supporting investor sentiment. Given the large number of office properties currently listed for sale and the substantial transactions underway, total transaction volume for 2025 is expected to surpass the previous record of approximately KRW14 trillion set in 2021.

Total transaction volume in the logistics sector rebounded significantly in Q3/2025, reaching KRW1.28 trillion following a sharp decline to KRW430 billion in Q2. This recovery was primarily attributed to major deals that had been delayed from the previous quarter.

DWS AMC finalized the acquisition of two warehouses from GIC for KRW118.6 billion, while Blackstone acquired the MQ Logistics Centers in Namyangju and Gimpo for KRW351 billion through Qube Industrial AMC. CapitaLand Investment also completed its acquisition of the Yulgeum-ri Logistics Center in Chungcheongnam-do, after resolving vacancy risks. These transactions had initially been scheduled to close in Q2 but were postponed to Q3.

Meanwhile, KKR purchased the Hwaseong Jegiri Logistics Center for KRW270 billion via Kreate AMC, following its Q2 acquisition of the Anseong Yangbyeonri Logistics Center.

Amid a constrained pipeline of new developments, the average vacancy rate for logistics centers is beginning to trend downward. Supported by a dovish market outlook, foreign investor sentiment remains strong, although domestic institutional investors have yet to return to the market.