In the first half of this year, the transaction volume of office properties in Seoul was reported to be nearly 76% of last year's level.
On the 28th, GenstarMate, a domestic commercial real estate comprehensive service corporation, published the 'Q2 2025 Office Market Report,' which contains this information.
According to the report, the transaction volume of office properties in Seoul in the first half of this year reached a total of 10.1536 trillion won (including Seongnam's Bundang, 10.3706 trillion won). This amounts to about 76% of last year's annual transaction volume.
In the second quarter of this year, the single transaction volume increased by 5.572 billion won (about 12%) compared to the previous quarter, and by 42.852 billion won (400%) compared to the same period last year, reaching 53.554 billion won. This marks the second-largest volume since GenstarMate began collecting data in 2000.
In particular, the Gangnam Business District (GBD) achieved a record quarterly transaction volume of 2.4854 trillion won. The Gangnam N Tower was bought for office purposes by the virtual asset exchange Bithumb at 44 million won per pyeong, totaling 680.5 billion won, while the SI Tower was acquired by IGIS Asset Management from KB Asset Management at 44.8 million won per pyeong, totaling 897.1 billion won, leading to high-value transactions.
The Central Business District (CBD) also recorded a similar transaction volume of 2.4102 trillion won. Transactions of core assets, including KDB Life Tower, CJ CheilJedang Center, Susong Square, and Crescendo, gathered focus, with more than 90% of the total transaction volume occurring in large assets of over 10,000 pyeong.
Additionally, the office rental market in Seoul saw an overall vacancy rate rise to 6.8% due to the impact of new supplies in other regions, an increase of 0.5 percentage points compared to the previous quarter. However, contrasting trends emerged by region. The vacancy rate in YBD decreased by 1.3 percentage points to 2.2%, the lowest among all regions. In contrast, the CBD recorded a vacancy rate of 5.1%, an increase of 0.9 percentage points due to new buildings such as INNO88 Tower and Kate Twin Tower. The GBD maintained a similar vacancy rate of 3.9% compared to the previous quarter as vacancies in large offices like Centerfield East and Icon Samsung were resolved. Other regions experienced a significant rise in vacancy rates to 14.9% due to the effects of new supplies, while the BBD (Bundang District) saw its vacancy rate rise to 3.2% due to the exit of some large tenants.
Rental prices have seen a slight increase across all regions. In the second quarter, the average rental price in the CBD reached 1.133 million won per 3.3 square meters, while GBD was at 1.127 million won, reflecting increases of 1.1% and 1.2%, respectively, compared to the previous quarter. Notably, rental prices rose in ultra-large and large offices such as Signature Tower and Crystal Square in the CBD, while prime assets such as POSCO Center and Koreate Tower lifted the regional average in the GBD. YBD maintained similar levels for both deposits and rents due to the rising rental prices of large offices, while other regions saw some rental prices of large buildings decrease, yet small assets showed a rise, keeping the average level.
In the second quarter of 2025, tenant transfers were actively carried out, particularly in the finance and insurance industries. The tenant movement rate in finance and insurance increased by 6 percentage points compared to the previous quarter, as large tenants from the finance and insurance sectors, including Hyundai Motor Securities, Mirae Asset Life Insurance, and our country Investment Securities, moved into One Sentinel in YBD, improving the vacancy rate. In the information and communications industry, new office spaces like SK-C Tower (Tmap Mobility) and The Pinnacle Yeoksam II (Cloud Edu) were central to the move-in, and the overall tenant movement rate was recorded at 18%.
In the second half of this year, the office market is expected to see transactions of major assets. However, since many listings remain at the bidding stage, the transaction speed is expected to be somewhat adjusted. Kim Gyu-jin, head of the GenstarMate Research Center, noted, "In the second half, transactions of NC Tower 1 and Namsan N Tower are expected to conclude, but since most assets are in the bidding stage, significant time is anticipated for actual transaction completion," adding that the transaction volume in the second half is likely to decrease somewhat compared to the first half, finishing at a total annual transaction level of 16 to 17 trillion won.