Which subsector in Seoul saw the highest retail rental growth in Q2?

Shopping mall rents grew by 1.1% during the quarter.

According to a JLL report, Seoul Shopping Malls and High Streets saw a 1.1% and 0.7% increase in net effective rents q-o-q, respectively. Among High Streets, Myeongdong’s rent growth outpaced others.

Both Shopping Mall and High Street yields have expanded equally by 10 basis points. Only a few High Street transactions, such as SC Bank and Samsung Digital Center, were concluded.

Here’s more from JLL:

Consumption remained a mixed bag. The CSI fluctuated during the quarter, reading 100.7 in April, 98.4 in May and 100.9 in June. Retail sales decreased slightly during the quarter.

The monthly number of foreign tourists in May was 1,418,463, rising 63.6% y-o-y. Among them, Chinese tourists accounted for 27.9%, becoming the leading source of international visitors.

The vacancy rates of Shopping Malls and High Streets are polarised

No notable Shopping Mall (SM) or High Street (HS) stock was added to the basket in Q2 2024.

Except for Times Stream and Times Square, other shopping malls experienced an erosion in occupancy over the quarter. The High Street vacancy was at its lowest level since Q4 2020.

Outlook: A lack of recent transactions turns investor sentiment sour

The limited buyer pool and higher-for-longer interest rates will subdue investment activity in the retail space. The fluctuations in footfall and mixed economic indicators will act as headwinds.

With no imminent supply in the pipeline, overall occupancy will not alter much from the current level. The polarisation in demand for High Streets is likely to persist.

 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!