Investment in Seoul's commercial real estate market last year hit an all-time high, which was seen as a result of improving investor sentiment as the interest rate cycle shifted toward cuts.
According to the 2025 Q4 Seoul capital market report released by Cushman & Wakefield Korea on Feb. 5, last year's Seoul commercial real estate transaction amount totaled 25.4 trillion won. That was about a 23% increase from a year earlier and the largest since records began.
In Q4 last year, a total of 29 transactions that met certain price and size thresholds were completed. The transaction amount came to about 7.8 trillion won. By asset type, offices led market growth. Q4 office transactions totaled 14, amounting to about 5 trillion won, and the annual cumulative transaction value reached 18.7 trillion won, up about 43% from the previous year.
In particular, in the office market, "share deal" structures that trade equity and the participation of strategic investors (SI) stood out. A representative case is Signature Tower, which was sold for 1.0346 trillion won in the central business district (CBD) of Seoul. It was the largest transaction completed in the CBD last year. Another feature was the participation of Kumho Petrochemical, a tenant and SI, in the transaction.
Transactions also resumed in the Yeouido business district (YBD), adding momentum to the market. Yeouido Finance Tower was sold from Keppel Asset Management to KB Asset Management. Cushman & Wakefield analyzed that YBD is reemerging as an attractive investment destination as the supply gap from redevelopment intersects with stable tenant demand.
The logistics center market also showed signs of a rebound. In Q4 last year, there were six transactions of logistics centers in the greater Seoul area totaling about 2.1 trillion won, up 112% from the previous quarter. Incheon Cheongna Logistics Center traded for 1.003 trillion won, marking the largest transaction amount on record for a single logistics center asset in Korea. With fewer new groundbreakings easing oversupply concerns, investor sentiment was assessed to be entering a recovery phase.
In the hotel market, transactions of four-star hotels around Myeong-dong continued. Courtyard Marriott Seoul Namdaemun and Four Points by Sheraton Seoul Myeongdong changed hands. The expectation of a business upturn from an increase in annual inbound tourists was seen to have translated into investment demand. It was also noted that more cases are maintaining hotel operations without converting use after transactions.
By contrast, retail transactions contracted relatively. However, transactions continued steadily in key commercial districts such as Seongsu, showing a continued polarization by district.
Cushman & Wakefield said, "Rather than relying only on expectations of interest rate cuts, a selective investment stance that emphasizes fundamentals such as an asset's location and tenant demand is strengthening," and projected, "There is a possibility that the recovery trend centered on offices and logistics centers will continue in the mid- to long term."