Acquisition and Disposition

Q: What are the recent transaction price trends for office buildings in Seoul?

According to the RSQUARE Office Market Report, which surveys 945 office buildings with a gross floor area (GFA) of 3,300㎡ or more, the average transaction price per pyeong (3.3㎡) for office buildings in Seoul and the Bundang area recorded KRW 29.82 million in Q4 2025, representing a 2.3% decrease quarter-over-quarter. However, the annual average transaction price for 2025 reached KRW 31.26 million, up 7.4% year-over-year. This fluctuation reflects differences in asset composition by quarter. Overall, the market has maintained a steady upward trend for three consecutive years following the sharp increase observed during 2021–2022. The average Cap Rate for Seoul office assets was recorded at 4.28%, up 0.12 percentage points from the previous quarter. As of Q4 2025, the 3-year Korean Treasury bond yield stood at 2.83%, resulting in a spread of 145bps between Cap Rates and interest rates. Although transaction volumes in 2026 are expected to slow somewhat due to the gradual pace of interest rate cuts and oversupply concerns in the CBD market, selective demand for prime assets is expected to support stable transaction activity. Detailed market data is available in the RSQUARE Office Market Report Q4 2025. Source: https://en.rsquare.co.kr/cre-market-reporting?category=TF22x5Om7d

Q: Why is the Cap Rate important when analyzing the investment market?

The Cap Rate (Capitalization Rate) is one of the most important indicators used to evaluate real estate investment performance. It serves as a benchmark for assessing both asset pricing and profitability. Cap Rate represents the annual rate of return an investor can expect from a property. For example, a Cap Rate of 5% indicates that the property generates an annual return equivalent to 5% of the asset value. Formula: Cap Rate = NOI (Net Operating Income) ÷ Asset Value NOI refers to the net operating income generated after deducting operating expenses from rental revenue, while Asset Value represents the market value or purchase price of the property. In the Seoul office market, Cap Rates are currently in the low-to-mid 4% range, reflecting stable rental income and relatively low investment risk.

Q: I would like to compare and analyze various office building assets quickly and easily.

RSQUARE operates RSQUARE Analytics (RA), a proprietary commercial real estate analysis platform that enables users to efficiently compare and analyze office building assets. Powered by a proprietary database of more than 300,000 commercial properties nationwide and integrated public data, the platform provides map-based insights into key investment indicators. Through RSQUARE Analytics, users can review and compare rental rates, vacancy rates, transaction cases, tenant occupancy information, and building specifications at a glance. This significantly reduces the time required to evaluate factors affecting asset value and supports more effective data-driven decision-making. Key features include: Comparative analysis of rental rates, vacancy rates, and transaction cases, Market analysis by major business districts, Review of actual transaction and tenant occupancy data, Access to building and ownership records, Official property valuation data, Nationwide commercial property search and nearby competitor benchmarking, Monitoring of new supply pipelines and market inventory. Learn More About RSQUARE Analytics : https://en.rsquare.co.kr/rsquare-analytics

What are the recent transaction price trends for office buildings in Seoul?

According to the RSQUARE Office Market Report, which surveyed 945 office buildings with a GFA of 3,305㎡:
As of Q4 2025, the average transaction price per pyeong for office buildings in Seoul and Bundang reached KRW 29.82 million,
a slight decline of 2.3% from the previous quarter.

However, the annual average for 2025 increased to KRW 31.26 million, up 7.4% year-over-year.

These fluctuations are largely attributed to quarterly changes in traded asset composition.
Overall, the market has widened its gains for three consecutive years since the 2021–2022 surge, sustaining a solid upward trend.

🔍 Key Market Indicators

Average Seoul Office Cap Rate: 4.28% (up 0.12%p from the previous quarter)
3-Year Korean Treasury Yield (Q4 2025): 2.83%
Yield Spread: 145bps (difference between Cap Rate and government bond yield)

While 2026 transaction volumes may slow due to concerns over CBD oversupply and a slower pace of policy rate cuts,
selective investment demand for prime assets is expected to support stable transaction activity.

📌 View RSQUARE Office Market Report (Q4 2025)

Why is the Cap Rate important when analyzing the investment market?

Cap Rate(Capitalization Rate) is a fundamental metric used to evaluate commercial real estate investments.

It serves as a benchmark for evaluating both asset pricing and profitability,
representing the expected annual return an investor can anticipate from a property.

For example, a Cap Rate of 5% indicates that the asset is expected to generate an annual return equivalent to 5% of its total value.

🔍 Formula

Cap Rate = NOI(Net Operating Income) ÷ Asset Value
- NOI(Net Operating Income) : Rental income - operating expenses
- Asset Value : Property price

In the Seoul office market, Cap Rates have recently stabilized in the low-to-mid 4% range, reflecting stable rental income and low perceived risk.

I would like to compare and analyze various office building assets quickly and easily.

RSQUARE operates RSQUARE Analytics (RA), Korea’s first commercial real estate analysis platform,
powered by a comprehensive census database of over 300,000 properties and public data sources nationwide.

RSQUARE Analytics enables users to compare essential investment data—including rents, vacancy rates, transaction history, tenant occupancy, and building information—view and compare at a glance through a map-based interface. This reduces analysis time and supports informed, data-driven decision-making.

🔍 Key Features of RSQUARE Analytics (RA)

Market & Asset Comparison: Analyze rental/vacancy rates and transaction cases by district.
Investment & Transaction Data: Access transaction records, tenant data, and building records, registry data, and officially assessed values.
Map-based Exploration: Search commercial properties nationwide, compare nearby competing assets, and track new supply.

📌 Learn More About RSQUARE Analytics

Acquisition and Disposition