In the fourth quarter of last year, commercial rental prices decreased and vacant commercial spaces increased.

(Seoul=News1) Reporter Lee Kwang-ho reports that on Jan. 21, a rental inquiry banner is posted on a commercial building near Jonggak Station. With the end of COVID-19, areas like Euljiro and Myeongdong experience a rapid recovery in their commercial districts; however, the commercial district near Jonggak Station struggles due to reduced foot traffic and high prices, causing merchants to be unable to endure. Additionally, the Korea Real Estate Board conducted a survey of commercial real estate leasing trends in the third quarter of last year, revealing that the vacancy rate of small businesses in Jongno reached 6.6%, roughly double the figure from three years ago in 2019 (3.25%). Jan. 21, 2024/News1

According to the Korea Real Estate Board's '2024 Fourth Quarter Commercial Real Estate Rental Trend Survey' released on the 31st, the integrated rental price index for commercial properties in the fourth quarter of last year fell by 0.14% compared to the previous quarter. The rental price index indicates fluctuations in market rental prices, using the second quarter of 2024 as a reference point set at 100 to compare the volatility of rental prices.

Breaking down the fourth quarter rental price index for commercial properties, the rental price index for shopping complexes fell by 0.2%, the rental price index for small-scale commercial spaces decreased by 0.18%, and the rental price index for medium and large commercial spaces dropped by 0.11%.

The rental prices per square meter for commercial properties were 26,500 won for medium and large commercial spaces, 27,000 won for shopping complexes, and 27,700 won for small-scale commercial spaces, reflecting decreases of 0.16%, 0.5%, and 0.44%, respectively, compared to the previous year.

The vacancy rate for commercial spaces also increased. The nationwide vacancy rate for shopping complexes recorded 10.1%, an increase of 0.2 percentage points compared to the previous year.

In contrast, the national office rental price index rose by 3.22% compared to the previous year. This was attributed to concentrated rental demand in the central business districts of Seoul and Gyeonggi Province. The office rental price index in Seoul increased by 4.78% from the previous year.

The Korea Real Estate Board noted, "In Seoul, the increase was due to a rise in foot traffic and sales centered around hot commercial areas like Yongsan Station, while regions outside Seoul saw a decline due to stagnation in offline commercial spaces," adding that "the polarization of commercial areas between Seoul and provincial regions is continuing."

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