In the fourth quarter of last year (October to December), the transaction volume in the Seoul office market exceeded 5 trillion won. This is the first time office transactions have surpassed 5 trillion won on a quarterly basis since 2020. It is analyzed that the increase in transaction volume was influenced by the transfer of office buildings worth hundreds of billions of won, such as the "D Tower Donamun." The market also forecasts that office transactions will be active this year.
According to the commercial real estate service company GenstarMate Research Center, the transaction volume for Seoul offices in the fourth quarter of last year (October to December) reached 5.0532 trillion won. This marks the first time in 4 years and 3 months that the transaction volume has exceeded 5 trillion won on a quarterly basis since the third quarter of 2020 (5.4813 trillion won).
By region, the central business district (CBD) had the highest transaction volume at 2.1703 trillion won, accounting for 43% of the total transactions, an increase of 55% compared to the previous quarter. The Gangnam area (GBD) had a transaction volume of 1.273 trillion won, while the Yeouido area (YBD) recorded 836.2 billion won.
In terms of major transaction cases, prime office transactions, including "D Tower Donamun" (895.3 billion won), "Case Square Magok" (690.6 billion won), and "Coreit Tower" (445 billion won), totaled 2.9826 trillion won, accounting for 59% of all transactions.
The transaction price per 3.3 square meters by region was highest in the Gangnam area (GBD) at 34.03 million won, followed by the CBD (30.73 million won), YBD (24.85 million won), and other areas at 17.09 million won.
Meanwhile, in the rental market, the increase in new office supply has led to a rise in the vacancy rate. The overall vacancy rate for Seoul offices in the fourth quarter reached 6.0%, a 1.4 percentage point increase from the previous quarter. This was due to large-scale supplies mainly in the Magok area. However, in the CBD, the vacancy rate fell to 3.3%, a decrease of 0.2 percentage points from the previous quarter due to the resolution of large vacancies in Post Tower and Seoul City Tower.
Overall, rental prices have shown an upward trend. In the fourth quarter, average office rent in Seoul increased by 1.0% compared to the previous quarter, while management fees rose by 0.6%. The average monthly rent per 3.3 square meters in the GBD was 108,500 won, a 2.1% increase from the third quarter of last year. The CBD (106,800 won) and YBD (93,300 won) also increased by 0.6%, respectively.
GenstarMate forecasts that office transactions in the Seoul market will remain active this year. Kim Kyu-jin, head of the GenstarMate Research Center, analyzed that "due to the limited new supply in major regions in the short term and the beginning of an interest rate cut, along with the recovery of institutional investors' investment sentiment, the Seoul office market will continue to see steady transactions this year."