Seoul CBD office vacancies to remain tight over next three years

Savills sees 343,000sqm of new supply with minimal impact on vacancies.

Vacancy rates in Seoul’s central business district (CBD) are expected to remain low through 2028, supported by a limited near-term supply pipeline and steady tenant demand, according to a new analysis by Savills Korea.

Savills estimates that total new prime office supply scheduled for delivery in the CBD between 2026 and 2028 will amount to approximately 343,000 square metres, equivalent to an average of 114,000 square metres per year. Notably, no new prime office supply is expected to be delivered in 2027, further constraining available space during the period, Savills said.

According to Savills Korea, upcoming completions will be modest and geographically dispersed. Prime office developments are expected in the Euljiro 3-ga and Gongpyeong-dong areas in 2026, followed by projects in Myeong-dong and the Sewoon district in 2028.

The consultancy noted that the CBD has experienced an extended period of limited new supply. Only one building, Meritz Gangbuk Tower, has been delivered in the CBD since 2022, resulting in relatively muted tenant relocations and expansion activity over the past three years. Savills said this supply constraint has played a key role in keeping vacancy levels tight.

From a demand perspective, Savills highlighted that historical average annual net absorption in the CBD over the past 25 years has been approximately 107,000 square metres. This figure is broadly in line with the projected annual average supply between 2026 and 2028, suggesting that upcoming completions are likely to be readily absorbed by the market.

“With supply and demand expected to remain closely balanced over the next three years, the CBD is unlikely to see a material rise in vacancy,” Savills Korea said.

As of Q3 2025, the CBD vacancy rate stood at 5.0%, according to Savills data. Given the limited supply outlook and stable absorption trends, Savills expects vacancy levels to remain at similarly low levels through 2028, reinforcing landlord-favourable conditions in the near term.

Savills added that this tight market environment is likely to sustain strong competition for prime space, particularly among large corporate tenants seeking modern office buildings in core CBD locations, ahead of a much larger wave of new supply expected later in the decade.