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Seoul Prime Office Q2/2026

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Contacts & Related Research

The recent sharp increase in the 5-year Korean government bond yield has intensified upward pressure on cap. rates compared to the previous quarter.

- SAVILLS RESEARCH

Supply emerges amid selective investment

Key Takeaways

  • Net absorption in Seoul prime office declined for the second consecutive quarter, resulting in a 0.2 ppt increase in the vacancy rate from the previous quarter. Vacancy rate remained low at 4.2% as of June 2026.
     
  • GBD recorded the lowest vacancy rate among Seoul’s major districts at 1.7% with solid tenant demand. Amid limited new supply, face rents in the GBD exceeded those in the CBD for the first time on record, reaching KRW136,200 per py. 

  • In Q2/2026, the Seoul office investment market remains selective amid continued uncertainty, primarily focused on high-quality Core assets secured by long-term tenants and large-scale asset transactions driven by owner-occupier demand, such as Hana Securities Building. 

  • Despite a stable cap. rate, upward pressure is expected to increase while high-interest rate environment and elevated financing costs persist.
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