Seoul prime office net absorption hits 69,000sqm in Q2

The vacancy rate decreased to 3.2%.

According to a Savills report, in Q2/2024, net absorption for Seoul prime office totalled 69,000 sq m, with average vacancy rate down by 0.7ppt to 3.2%. 

CBD's vacancy rate rose by 0.4ppt to 2.1%, primarily due to increased leasable area following the completion of Seoul City Tower's remodeling. GBD's vacancy rate remained unchanged at 1.6%, while YBD saw its vacancy rate drop by 3.2ppt to 7.0% as pre-contracted tenants completed their move-ins. 

Here’s more from Savills:

In CBD, despite a rise in the vacancy rate, net absorption also rose by 8,500 sq m. SK Group's logistics automation firm, SM Core, moved into the remodeled Seoul City Tower, taking up 4,000 sq m. Most new leasing activity in the CBD was from multinational and financial companies. 

Net absorption in GBD increased by only 200 sq m, despite substantial tenant movement. Hyundai Motor Company expanded in The Asset Gangnam, offsetting vacancies from LX Glass's move to KEPCO Art Center. Fresh Easy vacated Samsung Life Daechi Tower, with Shinsegae International immediately occupying the new space. GBD maintains the lowest vacancy rate due to strong standby demand ready to take any available area. 

With greatest available area upon completion of new projects such as Anchor One and TP Tower, YBD's net absorption was the highest among major districts at 60,300 sq m. Upon reconstruction of its HQ, Kiwoom AMC moved to TP Tower, reducing TP Tower's vacancy rate to approximately 70%. YBD continues to see large vacancies filled by occupiers in the financial sector, with over 89% of absorption for Q2 originating from the sector.