Seoul prime logistics supply to remain lacklustre in 2026

2025’s total supply will just be over a quarter of last year’s levels.

In a report, JLL revealed that only about 51,652 pyeong of prime logistics supply is expected in Seoul in Q4 2025, making 2025’s total supply just 28% of 2024 levels. 2026 is expected to see similarly low supply as 2025, with vacancy rates forecast to decline further from current levels.

“Increased market liquidity has led to multiple core centre trades, with continued deals expected for selective, competitive assets. Foreign investors are forecast to drive demand, though domestic institutional investment should gradually expand,” the report said.

Here’s more from JLL:

In Q3 2025, net absorption in the SCA recorded 116,800 pyeong. The Central remained quiet, while the South recorded negative net absorption as multiple tenants vacated. Large 3PLs such as CJ Logistics and Hanjin, as well as Coupang, contributed to take-up.

The North, South-east, and West recorded positive net absorption, with the South-east largest at 121,900 pyeong, highest since Q4 2021. Two of three new centres were fully leased in the South-east, and leasing activity in existing centres was buoyed as well.

SCA vacancy rate achieves its lowest level in six quarters

The quarter saw five new centres completing, including one owner-occupied centre. Three centres were delivered in the South-east, one in the South, and one in the North. The West recorded zero supply for the third consecutive quarter.

In Q3 2025, SCA vacancy rate fell 77bps q-o-q to 15.6%. Apart from the South, the North, the South-east and the West saw a vacancy decline. Notably, the South-east recorded the largest vacancy drop of 391bps q-o-q, despite having the highest supply among all districts.

The SCA Grade A market cap rate compresses 10bps q-o-q to 5.2%

Net effective rent reached KRW 32,300, rising modestly by 0.9% q-o-q and 3.0% y-o-y. The West recorded the largest increase among submarkets at 2.4% q-o-q and 5.9% y-o-y, as several centres in Incheon and Bucheon implemented significant rent hikes.

Transaction volume recovered in Q3 to KRW 1.2 trillion after previous quarter’s sharp decline. Six mega-deals above KRW 100 billion occurred. Hwaseong Jegi-ri Logistics Center was traded from JR AMC (Invesco) to KREATE Asset Management (KKR) for KRW 270 billion.