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.
