In the second quarter of this year, the office vacancy rate decreased slightly and rental prices increased. In contrast, retail spaces saw a decrease in rental prices, and vacancy rates increased for small, medium, and collective retail spaces.
According to the '2025 Second Quarter Commercial Real Estate Rental Trend Survey' released by the Korea Real Estate Board (REB) on the 31st, the office rental price index rose by 0.69% compared to the first quarter of this year. The national average rent recorded 186,000 won per square meter.
In particular, as demand for rentals increased in central business districts such as Seoul and Gyeonggi Province, the urban area rose by 0.53%, the Gangnam area by 1.30%, and the Yeouido and Mapo areas by 1.30% each.
The office investment yield recorded 1.36%. Both the income yield (0.93%) and the capital yield, which indicates changes in asset value (0.43%), increased.
In major business districts like Seoul, the preference for prime office spaces has strengthened, maintaining a landlord's market with low vacancy rates. The national office vacancy rate was 8.6%, a decrease of 0.1 percentage points from the previous quarter.
In contrast, despite the recovery of economic sentiment, the retail market continued its decline due to weakening private consumption from high inflation. The integrated rental price index for retail spaces, including medium (-0.10%), small (-0.21%), and collective retail spaces (-0.15%), fell by 0.13% compared to the previous quarter. However, the overall decrease was smaller than in the previous quarter.
The vacancy rate for retail spaces was highest for medium-sized retail spaces at 13.4%, followed by collective retail spaces (10.5%) and small retail spaces (7.5%).
The integrated rental price index for retail spaces in Seoul increased by 0.21% compared to the previous quarter. Sejong (-0.45%) and Incheon and Gangwon (-0.31%) experienced declines.
The Korea Real Estate Board (REB) noted, 'In Seoul, foot traffic and sales increased around key commercial areas such as Ttukseom and Yongsan Station, leading to a continued rise in rental prices.' They added, 'However, aside from Seoul, the original city center's commercial areas are stagnant, causing a continued decline in the rental market, exacerbating polarization between Seoul and other regions.'