▶ New supply in H2 last year plummeted 67% YoY to 190,000 pyeong; Annual supply hits an 8-year low at 350,000 pyeong
▶ RSQUARE Big Data Consulting Division releases 'H2 2025 Greater Seoul Logistics Center Market Report'
▶ "Inflow of foreign capital centering on mega-assets in the Western district drives investment market rebound"
"Vacancy rates for both dry and cold storage logistics centers fell simultaneously. However, survival competition remains fierce, characterized by rent cuts for aging assets and the conversion of cold storage into dry storage."
According to the 'H2 2025 Greater Seoul Logistics Center Market Report' released by the Big Data Consulting Division of RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, the Greater Seoul logistics market broke records for transaction volume in the investment market, even as new supply slowed down sharply. Conversely, the polarization phenomenon—where the gap in rents and transaction prices between prime assets and aging facilities is widening—is reported to be intensifying.
■ From 'Oversupply' to 'Supply Cliff'… New Supply Hits an 8-Year Low
New supply of logistics centers in the Greater Seoul area has entered a distinct slowdown phase. In the second half of last year, newly supplied area was tallied at approximately 190,000 pyeong, representing a 67% decrease compared to the same period of the previous year. Total annual supply stopped at just about 350,000 pyeong, a sharp 70% drop compared to 2024 (1.19 million pyeong). Notably, last year's supply volume recorded the lowest level in the past eight years, contributing to easing the market's supply-demand imbalance.
"This decrease in supply is attributed to a sharp decline in new permits and construction starts, driven by rising construction costs and increased market uncertainty," analyzed the Big Data Consulting Division in the report. It further projected, "Due to tightened policy regulations, such as the amendment of Gyeonggi-do's ordinance on standard permit criteria for warehouses, it will be difficult for new development conditions to improve in the short term." By district, the Central district recorded "zero" new supply for two consecutive years. The Southeast and Southern districts also saw their supply intensity significantly ease compared to past periods of concentrated supply.
■ Vacancy Rates Edge Down Amid Accelerated 'Cold-to-Dry Conversion'
Driven by the supply slowdown, average vacancy rates for both dry and cold storage logistics centers decreased slightly. The average vacancy rate for dry storage in the Greater Seoul area fell by 2.4 percentage points compared to the previous period to 13.3%, while cold storage dropped by 2.9 percentage points to 37.3%. Notably, the decline in cold storage vacancies was driven more by the reduction in supply due to market imbalances rather than a pure expansion in demand. Furthermore, the increasing trend of converting existing cold storage spaces into dry storage (conversion) played a major role.
Looking at leasing trends by district, the Southeast district showed a meaningful recovery, with its dry storage vacancy rate lowering to 9.5% due to the entry of large shippers such as Coupang and Hanjin. In contrast, the Northwest district maintained the highest vacancy rates in Greater Seoul for both dry (27.3%) and cold (62.1%) storage, with stabilization expected to take more time. While overall "nominal rents" edged down slightly, this is interpreted as a result of lower-competitiveness assets strategically lowering rents to resolve vacancies, signaling a clear polarization between assets.
■ Unprecedented Investment Heat of 3.3 Trillion KRW… Mega Prime Assets Drive the Market
The investment market succeeded in rebounding, achieving record-high transaction values led by mega-scale assets. In the second half of 2025, the total investment transaction value for logistics centers in Greater Seoul reached 3.3 trillion KRW, surging more than twofold compared to the first half. The transacted area also reached 461,000 pyeong, marking the highest level since data tracking began
This growth in the investment market was driven by the combination of mega-assets in the Western district and foreign capital. Incheon's 'Cheongna Logistics Center' was sold to Create Asset Management (invested by KKR) for approximately 1 trillion KRW. Ownership of Siheung's 'Logis Valley Ansan' was also transferred to Wide Creek Asset Management (invested by M&G) for approximately 500 billion KRW.
Although the average transaction price per pyeong was recorded at 7.15 million KRW, the value polarization among assets ran deeper. Prime assets with long-term leases secured by tenants like Coupang traded at high price points in the 8 to 9-million-KRW range per pyeong, whereas small, aging assets stalled between 2 and 4 million KRW per pyeong. The report concluded, "Moving forward, the market will reshape itself around large-scale assets that have secured premium tenants."
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▶ New supply in H2 last year plummeted 67% YoY to 190,000 pyeong; Annual supply hits an 8-year low at 350,000 pyeong
▶ RSQUARE Big Data Consulting Division releases 'H2 2025 Greater Seoul Logistics Center Market Report'
▶ "Inflow of foreign capital centering on mega-assets in the Western district drives investment market rebound"
"Vacancy rates for both dry and cold storage logistics centers fell simultaneously. However, survival competition remains fierce, characterized by rent cuts for aging assets and the conversion of cold storage into dry storage."
According to the 'H2 2025 Greater Seoul Logistics Center Market Report' released by the Big Data Consulting Division of RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, the Greater Seoul logistics market broke records for transaction volume in the investment market, even as new supply slowed down sharply. Conversely, the polarization phenomenon—where the gap in rents and transaction prices between prime assets and aging facilities is widening—is reported to be intensifying.
■ From 'Oversupply' to 'Supply Cliff'… New Supply Hits an 8-Year Low
New supply of logistics centers in the Greater Seoul area has entered a distinct slowdown phase. In the second half of last year, newly supplied area was tallied at approximately 190,000 pyeong, representing a 67% decrease compared to the same period of the previous year. Total annual supply stopped at just about 350,000 pyeong, a sharp 70% drop compared to 2024 (1.19 million pyeong). Notably, last year's supply volume recorded the lowest level in the past eight years, contributing to easing the market's supply-demand imbalance.
"This decrease in supply is attributed to a sharp decline in new permits and construction starts, driven by rising construction costs and increased market uncertainty," analyzed the Big Data Consulting Division in the report. It further projected, "Due to tightened policy regulations, such as the amendment of Gyeonggi-do's ordinance on standard permit criteria for warehouses, it will be difficult for new development conditions to improve in the short term." By district, the Central district recorded "zero" new supply for two consecutive years. The Southeast and Southern districts also saw their supply intensity significantly ease compared to past periods of concentrated supply.
■ Vacancy Rates Edge Down Amid Accelerated 'Cold-to-Dry Conversion'
Driven by the supply slowdown, average vacancy rates for both dry and cold storage logistics centers decreased slightly. The average vacancy rate for dry storage in the Greater Seoul area fell by 2.4 percentage points compared to the previous period to 13.3%, while cold storage dropped by 2.9 percentage points to 37.3%. Notably, the decline in cold storage vacancies was driven more by the reduction in supply due to market imbalances rather than a pure expansion in demand. Furthermore, the increasing trend of converting existing cold storage spaces into dry storage (conversion) played a major role.
Looking at leasing trends by district, the Southeast district showed a meaningful recovery, with its dry storage vacancy rate lowering to 9.5% due to the entry of large shippers such as Coupang and Hanjin. In contrast, the Northwest district maintained the highest vacancy rates in Greater Seoul for both dry (27.3%) and cold (62.1%) storage, with stabilization expected to take more time. While overall "nominal rents" edged down slightly, this is interpreted as a result of lower-competitiveness assets strategically lowering rents to resolve vacancies, signaling a clear polarization between assets.
■ Unprecedented Investment Heat of 3.3 Trillion KRW… Mega Prime Assets Drive the Market
The investment market succeeded in rebounding, achieving record-high transaction values led by mega-scale assets. In the second half of 2025, the total investment transaction value for logistics centers in Greater Seoul reached 3.3 trillion KRW, surging more than twofold compared to the first half. The transacted area also reached 461,000 pyeong, marking the highest level since data tracking began
This growth in the investment market was driven by the combination of mega-assets in the Western district and foreign capital. Incheon's 'Cheongna Logistics Center' was sold to Create Asset Management (invested by KKR) for approximately 1 trillion KRW. Ownership of Siheung's 'Logis Valley Ansan' was also transferred to Wide Creek Asset Management (invested by M&G) for approximately 500 billion KRW.
Although the average transaction price per pyeong was recorded at 7.15 million KRW, the value polarization among assets ran deeper. Prime assets with long-term leases secured by tenants like Coupang traded at high price points in the 8 to 9-million-KRW range per pyeong, whereas small, aging assets stalled between 2 and 4 million KRW per pyeong. The report concluded, "Moving forward, the market will reshape itself around large-scale assets that have secured premium tenants."