Seoul’s 2026 prime logistics supply set to halve from 2025 levels

Only 68,800pyeong was completed in Q2.

The West submarket led logistics demand across the Seoul Capital Area (SCA) in the second quarter of 2026, recording its strongest net absorption since the first quarter of 2025, according to JLL.

Overall net absorption in the SCA reached approximately 49,600 pyeong in Q2. While the Central and South-east submarkets recorded negative absorption, the North, South and West posted positive figures.

The West accounted for the largest share, with approximately 36,900 pyeong of net absorption. JLL attributed the performance to new occupiers from the third-party logistics (3PL), wholesale and retail, and e-commerce sectors. The South, North, South-east and Central submarkets followed in terms of absorption.

New supply continued to decline, with 68,800 pyeong delivered across the SCA during the quarter. Major additions included Kendall Square Dangmok Logistics Park in the South and Bucheon Samjeong-dong Logistics Center in the West.

Despite the new completions, the overall vacancy rate remained unchanged at 15.5%. JLL said vacancy has remained within a narrow range since Q3 2025. The Central, South and South-east saw modest increases, while vacancy edged down in the West and North.

Net effective rents reached approximately KRW 32,900, up 0.7% quarter-on-quarter and 2.8% year-on-year. All submarkets recorded rental growth except the North, where several logistics centres with elevated vacancy reduced asking rents.

Logistics investment transactions totalled approximately KRW 889.9 billion in Q2. The largest transaction was the KRW 215 billion sale of Seongeun-ri Logistics Center in the South by IGIS Asset Management to ADF Asset Management.

Looking ahead, JLL expects logistics capitalisation rates to widen by 10 basis points by year-end. The consultancy said the Bank of Korea's base rate increase to 2.75% in July could raise borrowing costs for transactions progressing in the second half of 2026 and dampen acquisition activity.

Supply is forecast to fall sharply, with 2026 additions expected to be around 47% of 2025 levels and just 15% of 2024 levels. JLL nevertheless expects sustained demand from 3PL, e-commerce and manufacturing occupiers to keep net absorption above new completions, supporting the market's underlying fundamentals.