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PUBLISHER: Mordor Intelligence Pvt Ltd | PRODUCT CODE: 1072193

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PUBLISHER: Mordor Intelligence Pvt Ltd | PRODUCT CODE: 1072193

South Korea Office Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

PAGES: 150 Pages
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The Office Real Estate Market in South Korea is expected to register a CAGR of more than 5% during the forecast period (2022-2027).

The COVID-19 pandemic affected the office real estate market in South Korea, due to restrictions and social distancing policies and work from home culture. Now the market is in recovery phase, but not up to the pre pandemic levels. Furthermore, the growth of the sector is driven by increasing office space absorption, growth in leasing activities, declining vacancy rates etc.

Furthermore, Seoul is emerging as leader in office real estate sector. Office buildings accounted for more than 70% of commercial property transactions in Seoul during Q2 2021. In addition, office building prices in Seoul experienced robust growth in the country in Q2 2021, which was driven by increasing investments from domestic investors. Moreover, take up of prime office spaces remained high in the country during Q3 2021. Most of the prime office spaces absorbed by new organizations (with 27% absorption), secondary to prime (with 35% absorption), prime to prime (19%), and expanding existing organization (20%).

Key Market Trends

Increasing Demand for Prime Office Spaces

Most of the demand for prime office spaces is observed in Seoul. In Q3 2021, prime office vacancy rate fell 1.9 ppts quarter-on-quarter to 9.9%. Also, net absorption increased by 163,200 square meters on higher demand across all districts. Major business districts such as Central Business District (CBD), Gangnam Business District (GBD), Yeouido Business District (YBD) absorbed most of the prime office spaces in the city.

Furthermore, in Central Business District the vacancy rate fell 1.1 ppts quarter-on-quarter to 11.2% in Q3 2021. In addition, net absorption rose by 66,700 square meter despite the supply of 41,700 square meter from K-Square Citi. However, high tenant preferences in GBD resulted in increasing net absorption space by 28,400 square meters, and the vacancy rate declined to 8% in Q3 2021. Moreover, net absorption increased to 66,800 square meters in YBD as tenants continued to move into new buildings supplied last year, further reducing vacancy by 4.0 ppts quarter-on-quarter to 11.9%.

However, in Q3 2021, new office space supply increased, as K-Square Citi finished remodeling in CBD, adding 41,700 sq m of new supply. Meanwhile, Woongjin Group and Loca Mobility moved into K-Square after preleasing 40% of the building in Q2. Furthermore, average annual rents in CBD, GBD, and YBD experienced annual growth rate of 1.3%, 1.5% and 2.7% respectively.

Increasing Rental Prices of Office Spaces

The office market in South Korea received a hard hit by the pandemic. Now the market is recovering as significant growth observed in office absorption in 2021. Furthermore, rental prices for office spaces are also witnessing positive growth after the pandemic crisis. Furthermore, rise in rental prices is driven by declining vacancy rates, and increase in demand for office spaces from tech tenants, which are mainly expanding in the Gangnam area, also expanding into the CBD and Yeouido Business District.

Moreover, in Gangnam Business District, Grade A office spaces recorded a low vacancy rate in Q3 2021, as Centerfield, which was completed in Q1 2021, leased out their available space with Amazon signing a contract. In addition, 10 floors that Samsung Fire & Marine Insurance vacated in The Asset Gangnam Tower was filled by PeopleFund and Naver. In the GBD area, there are not many options available for tech tenants looking for Grade A office space further resulting in rise of rental prices.

According to statistics released by Korea Real Estate Board, Seoul and Gyeonggi provinces are leading in South Korea in terms of office space rental prices. In Q3 2021, the rental prices of office buildings in Seoul and Gyeonggi amounted to around 22,400 KRW per square meter and 11,800 KRW per square meter respectively.

Competitive Landscape

The office real estate market is fragmented in the country. Large companies have advantages in terms of financial resources, while small companies can compete effectively by developing expertise in local markets. Some of the major companies include Hines, Brookfield Asset Management Inc, Keangnam Enterprises, Ltd, etc.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 90345



  • 1.1 Study Deliverables
  • 1.2 Scope of the Study




  • 4.1 Market Overview
  • 4.2 Market Dynamics
    • 4.2.1 Drivers
    • 4.2.2 Restraints
    • 4.2.3 Opportunities
  • 4.3 Government Regulations and Initiatives
  • 4.4 Supply Chain/Value Chain Analysis
  • 4.5 Porter's Five Forces Analysis
  • 4.6 Technological Innovations in Office Real Estate Market
  • 4.7 Impact of Remote Working on Space Demand
  • 4.8 Insights into Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy (%)/Vacancy (%))
  • 4.9 Impact of COVID-19 on the Market


  • 5.1 By Sector
    • 5.1.1 Information Technology (IT and ITES)
    • 5.1.2 Manufacturing
    • 5.1.3 BFSI (Banking, Financial Services, and Insurance)
    • 5.1.4 Consulting
    • 5.1.5 Other Services
  • 5.2 By Cities
    • 5.2.1 Seoul
    • 5.2.2 Incheon
    • 5.2.3 Busan
    • 5.2.4 Others


  • 6.1 Overview (Market Concentration and Major Players)
  • 6.2 Company Profiles
    • 6.2.1 Brookfield Asset Management Inc.
    • 6.2.2 Hines
    • 6.2.3 Arup
    • 6.2.4 Keangnam Enterprises, Ltd.
    • 6.2.5 SK D&D Co. Ltd.
    • 6.2.6 Hanwha Group
    • 6.2.7 HYOSUNG
    • 6.2.8 FIDES Development
    • 6.2.9 Lotte Property&Development
    • 6.2.10 Regus Group Companies*



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Jeroen Van Heghe

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Christine Sirois

Manager - Americas


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