Seoul office take-up steady despite relocations across major districts

The market recorded a total net absorption of 11,200 sqm in Q4.

Seoul’s prime office market remained broadly stable in Q4/2025, recording total net absorption of 11,200 square meters and an average vacancy rate of 3.7%, in line with the previous quarter’s 3.8%, according to a report by Savills.

At the district level, the Central Business District (CBD) posted net absorption of 2,300 square meters, while its vacancy rate remained unchanged at 5.0%. Key movements in the CBD included SK C&C relocating 6,700 square meters from Centropolis to SK-U Tower, while BM&KL Partners and SBI Savings Bank vacated space at Signature Tower. Additional vacancies were recorded at City Center Tower. These outflows were offset by positive absorption from Jongno-gu Office moving 9,500 square meters into The K Twin Tower and Hanwha Claims Management relocating 4,300 square meters to the KCCI Building, resulting in modest overall net absorption for the district.

In the Gangnam Business District (GBD), net absorption contracted slightly by 700 square meters, although the vacancy rate remained stable at 1.7%. While Hyundai AutoEver expanded 5,100 square meters at the Samseong-dong Building and KB Financial Group took an additional 2,200 square meters at KB Life Tower, these gains were offset by relocations such as 111Percent moving 3,900 square meters from Gangnam Finance Center to Seongsu Super Fast Seoul Forest. Additional movements, including Epson Korea’s 2,500-square-meter relocation from Posco Tower Yeoksam to KT&G Daechi Tower and Toyota Financial Services’ 1,500-square-meter move to Pine Avenue B in the CBD, contributed to the district’s negative net absorption.

Meanwhile, the Yeouido Business District (YBD) led the market in take-up, with the vacancy rate declining by 0.5 percentage points quarter-on-quarter to 4.1%. Notable occupiers included SAP Korea, which took 6,000 square meters at One IFC, and Kakaopay Securities, which leased 1,300 square meters in the same building. Apple expanded by 1,700 square meters in Parc.1 Tower 1. While some tenants, such as Nexus Community and Polymirae, relocated from YBD to the CBD, the overall take-up in Yeouido helped reduce the district’s vacancy rate, underscoring its continued appeal.

Savills noted that despite district-level fluctuations, the prime office market in Seoul remains largely balanced. Positive absorption in YBD and steady activity in the CBD suggest ongoing demand for high-quality office space, while tenant relocations reflect a preference for modern, strategically located buildings. The market is expected to remain closely monitored in 2026, particularly as new prime office developments are scheduled for delivery in the CBD for the first time since 2020, which could influence vacancy and absorption trends further.