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Seoul Prime Office Q3/2025

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The estimated cap rate for Seoul’s prime office market edged down to the mid-to-high 4% range based on face rents, and to the low 4% range on an effective rent basis.

- SAVILLS RESEARCH

Prime Office Cap Rate Shifting Downward

Increasing investment volumes, with strong domestic investor activity

  • In Q3, the remodeling of INNO88 and KT Gwanghwamun West was completed, while G1 Seoul, Eul Tower, and Rene Square are scheduled to be added to the new supply pipeline next year.
  • Vacancy rates in the CBD and YBD increased to 5.0% and to 4.6%, respectively, while the GBD edged down to 1.7%, marking the only district with a decline.
  • Prime office rents in Seoul rose by 4.6% YoY in Q3, more than double the inflation rate of 2.1%. By district, rents increased 4.3% in the CBD, 5.0% in the GBD, and 4.9% in the YBD.
  • Year-to-date transaction volumes reached KRW 14.3 trillion, and if ongoing deals close as scheduled, total volume in 2025 is expected to surpass the 2021 record of KRW 14.6 trillion.
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