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Seoul MarketBeat

Jinwoo Jung • 07/05/2024
Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.

Retail: The number of foreign tourists visiting South Korea in Q1 2024 was the highest since COVID-19. According to the Ministry of Justice, overseas tourist arrivals in Q1 were approximately 3.4 million, representing a recovery of 89% of the pre-COVID performance. With the recent shift in foreign tourist travel preferences, from group to individual touring, Hannam∙Itaewon and Seongsu have experienced a surge in visits. Foreign tourists are now seeking travel information directly through social media, leading to more visits to Hannam∙Itaewon and Seongsu, also highly favored by younger Korean consumers.

Office: Overall Grade A office vacancy in Q1 fell by 0.2 pp q-o-q to 2.4%. Overall Grade A rents climbed by 0.6% q-o-q, with significant increases at several properties in YBD following the completion of the TP Tower. In 2H 2024, new prime office projects are expected to be supplied in the Magok District, making it a new option for tenants seeking expansive space and a favorable working environment.

Capital Markets: Total office building transaction volume in Seoul and Bundang in Q1 2024 totaled approximately KRW2.7 trillion, with eight deals completed. This is a rise of 46% q-o-q, and 172% y-o-y. Transactions in Q1 primarily focused on more easily financed assets of around 10,000 sqm, with deals in the range of KRW200 to KRW300 billion. As Seoul Grade A office sale prices have softened, the office market capitalization rate rose by 0.2 pp from the previous quarter. The number of buyers is relatively limited, and the time taken to complete transactions has grown. We expect to see this trend to continue for the foreseeable future through 2024, with transactions chiefly focused on core assets, while also expanding to include value-add assets to maximize value at current attractive prices.

Learn more by clicking our most recent Seoul MarketBeat reports below.

 

CURRENT MARKETBEATS

Shopping Retail
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Retail MarketBeat Report

Cushman & Wakefield's Q1 2024 Seoul Retail MarketBeat report is now available to download. Please click on the link to read our latest report.
Jinwoo Jung • 07/05/2024
Warehouse Internal Rack
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Investment MarketBeat Report

Cushman & Wakefield's Q1 2024 Seoul Investment MarketBeat report is now available to download. Please click on the link to read our latest report.
Jinwoo Jung • 22/04/2024
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Office MarketBeat Report

Cushman & Wakefield's Q1 2024 Seoul Office MarketBeat report is now available to download. Please click on the link to read our latest report.
Jinwoo Jung • 19/04/2024
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Logistics Marketbeat Report

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Jinwoo Jung • 30/01/2024

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