Here’s what to expect from Seoul’s office property sector this year

Find out which projects are slated for completion.

According to a Savills report, there has been no new supply of prime offices in Seoul since Q3/2021, keeping the vacancy rate low through to Q1/2023 and net absorption to only 10% of the figure achieved during the same period last year. 

In addition to Scale Tower supplied in March, Savills says projects such as Anchor One Building, TP Tower and the Bongraedong Meritz Fire & Marine Insurance HQ are expected to complete in 2H/2023, which should result in increased tenant activity during the second half of the year. 

Here’s more from Savills:

In the CBD, the remodelling of the Bank of Korea HQ will be completed in April. After the Bank of Korea relocates from Samsung HQ (44,200 sq m), the vacated area will be occupied by Samsung C&T and Samsung Electronics as a satellite office. E-Mart, which sold its headquarters last year, has announced plans to occupy Orange Center in its entirety, which was left empty after the move-out of Shinhan Life. 

Nokia Solutions & Networks Korea have agreed to lease 3,500 sq m of vacant space at SI Tower leaving Autoway Tower. Compared to Q4/2022, the new supply near Gangnam Station offers contiguous floors in the GBD. 

As for the YBD, Raon Secure is expected to lease 6,400 sq m at Parc.1 Tower 2 due to the planned refurbishment of the Wooshin Building in the GBD, while a foreign co-working operator is scheduled to occupy part (2,900 sq m) of the area at Hana Securities Building that was previously occupied by 3M (5,900 sq m).