Seoul prime office vacancy rises to 4% as CBD sees negative absorption in Q1

Net absorption stood at -26,900sqm during the quarter.

Seoul’s prime office market recorded negative absorption in Q1 2026, with vacancy rising across most major districts, according to Savills.

Total net absorption stood at -26,900 sq m, pushing the average vacancy rate up 0.4 percentage points quarter-on-quarter to 4.0%.

The CBD remained under pressure, posting net absorption of -22,100 sq m as new vacancies of 54,600 sq m outweighed take-up of 32,500 sq m. Vacancy in the district rose to 5.5%.

Despite this, leasing activity continued in selected assets. The Korea Land and Housing Corporation leased about 5,400 sq m at Seoul Square, while Nam & Nam Patent Law Firm took 2,200 sq m at the KCCI Building. Two Hanwha Group affiliates also expanded at Pine Avenue A, leasing a combined 5,500 sq m.

However, several large departures weighed on the market. Hanwha TotalEnergies vacated 12,500 sq m at Taepyeongro Hanwha Finance Center as part of relocation plans linked to upcoming refurbishments of Hanwha-owned assets. Lina Life Insurance also exited 4,300 sq m at The K Twin Tower, while Nate Communications downsized by 3,300 sq m at T Tower.

Seoul Square continued to carry elevated vacancy of around 20%, though Savills noted gradual absorption supported by phased leasing activity.

By contrast, the Gangnam Business District (GBD) was the only major submarket to post positive net absorption. Vacancy remained stable at 1.7%, the lowest among major districts. At POSCO Tower Yeoksam, space vacated by Tesla was quickly backfilled by Sigong Tech, while Snowflake occupied former Epson space, bringing the building to full occupancy. Intellectual Discovery also leased 2,300 sq m at Gangnam Finance Center.

The Yeouido Business District (YBD) recorded net absorption of -6,600 sq m, largely driven by redevelopment-related relocations. The Korea Fire Protection Association and Insurance Research Institute moved to One Centinel, while the Korea Insurance Development Institute relocated to Parc.1 Tower 2. LG Chem and GC Biopharma affiliates also completed major relocations to LG Twin Tower and Seoul Forest The Sharp Office respectively.

Savills noted that redevelopment-driven moves are expected to continue shaping YBD activity, while CBD vacancy pressures remain elevated amid ongoing tenant turnover and asset repositioning across the market.