Seoul prime office rents up 5% in Q1

The CBD area still commands the highest nominal rent.

Average Seoul prime office prime rents came in at KRW118,200/py according to Savills data, up 5.0% YoY similar to the previous quarter's increase. 

YBD and GBD showed growth of 6.6% and 6.5% YoY, respectively, while CBD only rose by 3.1% YoY, but still recorded the highest nominal rent at KRW123,200/py. Despite new supply coming online, vacancy remained low, keeping rent-free allowances limited similar to the previous quarter. 

“Management fees rose by 2.9% YoY to KRW46,000/py, in line with the change in CPI. CBDsawa 2.8% increase toKRW48,000/py, GBD by 2.7% to KRW43,800/py, and YBD by 3.5% to KRW44,800/py. The increase in rent and CAM fees for Seoul prime offices slowed in Q1/2024 as compared to the previous year, marking the lowest escalation in the past five years. With limited new marketable area available for lease, the growth in rents and CAM fees are expected to decelerate as compared to 2023,” Savills added.