▶ CBD rents rise, YBD vacancy hits record low of 2%… Prime-centric polarization solidifies
▶ RSQUARE Big Data Division: "Spring breeze hits the frozen market; Prime assets act as the 'priming water'"
▶ Strategic Investors (SIs) begin full-scale HQ acquisitions while small-to-medium buildings remain cold
The Big Data Division of RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, published the ‘Q3 2025 Office Market Real Report’ on the 14th. The report indicates that the major office markets in Seoul and Bundang have entered a recovery phase, accompanied by the resumption of large-scale transactions and rising rents focused on Prime assets.
In the third quarter, the transaction value for Seoul and Bundang offices reached 7.3 trillion KRW, a 28% increase from the previous quarter. Cumulative transaction volume for the year has now reached 19 trillion KRW. The total transacted area expanded to approximately 240,000 pyeong, driven by a series of mega-deals including Pangyo Tech-one (1.98 trillion KRW), Ferrum Tower (645 billion KRW), Pacific Tower (574 billion KRW), and NC Tower 1 (443.5 billion KRW). Notably, "headquarters-acquisition-type purchases" by Strategic Investors (SIs) have become active, signaling a recovery in investment sentiment that had previously been stagnant.
The leasing market continued its upward trend centered on Prime assets:
CBD (Central Business District): Despite new supply (Building 1987, Samyang Roundhill N-Tower, etc., totaling 11,000 pyeong), the vacancy rate remained stable at 4.4%. The average Net Occupancy Cost (NOC) rose 1.2% QoQ to 289,000 KRW/pyeong. Polarization by size widened, with Large buildings reaching 335,000 KRW/pyeong (+1.6%) while Small-to-Medium buildings dipped to 182,000 KRW/pyeong (-0.1%).
GBD (Gangnam Business District): The upward trend continued with a vacancy rate of 4.7% (+0.2%p) and an average NOC of 294,000 KRW/pyeong (+1.0%). While the growth rate was moderate due to new supply (Bundes Gangnam, AHN385), new leasing activity by IT and foreign firms—such as Viva Republica, Snowflake, and Hyundai AutoEver—remained robust.
YBD (Yeouido Business District): Recorded the lowest vacancy rate among the three major districts at 2.0% (-0.7%p). Rents maintained an upward trend at 282,000 KRW/pyeong (+0.3%). A "tight supply-demand structure" has formed as vacancies in ultra-large buildings like One Sentinel and the FKI Tower were absorbed, and future supply pressure eased due to scheduled demolitions and reconstructions.
Bundang District: Showed a clear recovery. The Pangyo Tech-one deal (1.98 trillion KRW) set a record for the largest single-building transaction ever, proving the inherent strength of the Bundang market.
"Rising rents centered on Prime assets are persisting, and demand from SIs to secure headquarters is leading the recovery of market confidence," stated the RSQUARE Big Data Division. "However, as demand remains fragmented for small-to-medium assets, it is crucial to closely monitor vacancy trends by district and potential risks from new supply."
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▶ CBD rents rise, YBD vacancy hits record low of 2%… Prime-centric polarization solidifies
▶ RSQUARE Big Data Division: "Spring breeze hits the frozen market; Prime assets act as the 'priming water'"
▶ Strategic Investors (SIs) begin full-scale HQ acquisitions while small-to-medium buildings remain cold
The Big Data Division of RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, published the ‘Q3 2025 Office Market Real Report’ on the 14th. The report indicates that the major office markets in Seoul and Bundang have entered a recovery phase, accompanied by the resumption of large-scale transactions and rising rents focused on Prime assets.
In the third quarter, the transaction value for Seoul and Bundang offices reached 7.3 trillion KRW, a 28% increase from the previous quarter. Cumulative transaction volume for the year has now reached 19 trillion KRW. The total transacted area expanded to approximately 240,000 pyeong, driven by a series of mega-deals including Pangyo Tech-one (1.98 trillion KRW), Ferrum Tower (645 billion KRW), Pacific Tower (574 billion KRW), and NC Tower 1 (443.5 billion KRW). Notably, "headquarters-acquisition-type purchases" by Strategic Investors (SIs) have become active, signaling a recovery in investment sentiment that had previously been stagnant.
The leasing market continued its upward trend centered on Prime assets:
CBD (Central Business District): Despite new supply (Building 1987, Samyang Roundhill N-Tower, etc., totaling 11,000 pyeong), the vacancy rate remained stable at 4.4%. The average Net Occupancy Cost (NOC) rose 1.2% QoQ to 289,000 KRW/pyeong. Polarization by size widened, with Large buildings reaching 335,000 KRW/pyeong (+1.6%) while Small-to-Medium buildings dipped to 182,000 KRW/pyeong (-0.1%).
GBD (Gangnam Business District): The upward trend continued with a vacancy rate of 4.7% (+0.2%p) and an average NOC of 294,000 KRW/pyeong (+1.0%). While the growth rate was moderate due to new supply (Bundes Gangnam, AHN385), new leasing activity by IT and foreign firms—such as Viva Republica, Snowflake, and Hyundai AutoEver—remained robust.
YBD (Yeouido Business District): Recorded the lowest vacancy rate among the three major districts at 2.0% (-0.7%p). Rents maintained an upward trend at 282,000 KRW/pyeong (+0.3%). A "tight supply-demand structure" has formed as vacancies in ultra-large buildings like One Sentinel and the FKI Tower were absorbed, and future supply pressure eased due to scheduled demolitions and reconstructions.
Bundang District: Showed a clear recovery. The Pangyo Tech-one deal (1.98 trillion KRW) set a record for the largest single-building transaction ever, proving the inherent strength of the Bundang market.
"Rising rents centered on Prime assets are persisting, and demand from SIs to secure headquarters is leading the recovery of market confidence," stated the RSQUARE Big Data Division. "However, as demand remains fragmented for small-to-medium assets, it is crucial to closely monitor vacancy trends by district and potential risks from new supply."