In 2022, Seoul’s office building vacancy rate dropped amid a sluggish real estate market, according to commercial real estate company Real Estate Planet. The average vacancy rate for office buildings in Seoul was 2.78%, with the lowest rate of 2.07% recorded in December. The GBD (Gangnam-gu and Seocho-gu) district had the lowest vacancy rate among major districts in Seoul, averaging a monthly rate of 0.5%. Meanwhile, the CBD (Jung-gu and Jongno-gu) had the highest vacancy rate last year, averaging 5.31%.
As demand increased, the average rent for office buildings in Seoul also increased, with the GBD area showing the largest rent increase of 2.5%. However, some rents decreased depending on the size of the building in the YBD (Yeongdeungpo-gu and Mapo-gu) and CBD districts. Last year, the cost per dedicated area of office buildings in Seoul increased by 3.3%.
Jeong Su-min, CEO of Real Estate Planet, noted that the office building rental market in Seoul is growing with declining vacancy rates. However, the transaction volume of commercial and office buildings in Seoul decreased by 43.8% compared to the previous year.