24.4Q Seoul Office Vacancy Rate at 4.9%, Up by 2.0%p from the Previous Quarter due to Large-Scale Office Supply in Magok

The average vacancy rate of '24.4Q office buildings in Seoul rose by 2.0%p form the previous quarter, reaching 4.9%, with vacancy rates increasing across all building sizes due to large-scale office supply, particularly in the Magok area. This quarter, the total new office supply in Seoul reached 255,000py, the highest since '20.Q3 when 'Park One Tower' was completed in YBD. Notably, vacancy rates for extra-large office spaces increased by 6.8%p from the previous quarter, driving up the overall vacancy rate in Seoul, primarily due to the supply of 232,000py of office leasing space in Magok. Meanwhile, the increase in average rental rates has continued to slow, with the average quarterly increase at 1.5% since '22.1Q but dropping to 1.2% last year. This slowdown is attributed to weakened tenant activity due to economic downturns. 

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