South Korea

But tenant fatigue may constrain demand.

Total investments hit KRW 11.6 trillion during the year.

Absorption only reached 133,300sqm in 2024.

Concerns about oversupply are expected to be reduced.

There are several new projects set to enter the market.

Over 2,000 new rooms are planned to materialise by then.

This is the lowest level since 2019.

Too much debt is burdening the country’s housing market. 

Only four centres were completed in Q3 2024.Seoul’s challenging project financing market remained prominent. According to a JLL report, in Q3 2024, only four centres were completed, which was fewer than initially speculated. In terms of area, this represented the lowest level in nine quarters, and in terms of number, the fewest in three years.

The Mercure Hotel and Pullman Gwangjin are some notable projects.

They are going after lower rents to achieve financial stability.

The total transaction value for the first nine months of the year is already 81% of 2023 totals.

The rental growth slowed across all major districts.

Net absorption was at -14,200sqm during the quarter.

More construction permits expire as developers struggle to secure financing.

Mercure Hotel Ambassador Seoul Magok is expected to set foot in 2025.