RSQUARE is Korea's leading commercial real estate services company.
The Research Center's "2024 2nd Quarter Office and Knowledge Industry Center Sales Index Report" and "'Office & Knowledge Industry Center Sales Index Report'" offer insights from top market experts, analyzed using a wide range of market data.
Additionally, RSQUARE has introduced Korea's first commercial real estate analytics service, featuring a database of over 300,000 properties that have been meticulously researched and are continuously updated. We appreciate your continued interest in our services. |
Seoul Office Sales Index Rises Slightly |
The Seoul Office Sales Index for the second quarter of 2024 stands at 477.1 points, reflecting a slight increase of 0.3% compared to the previous quarter but a decrease of 1.7% year-on-year.
The Seoul office sales market has remained stagnant since the third quarter of 2022, with no significant changes in key market factors such as leasing activity and supply. Consequently, the market has shown little movement since Q3 2022. |
Knowledge Industry Center Sees Significant Drop in Trading Index |
Transaction volumes at Seoul's Knowledge Industry Center increased in Q2; however, prices dropped significantly, likely due to an increase in the number of properties being sold at deep discounts. |
Seoul Office Sales Index for Q2 2024 Up 0.3% QoQ |
data - In the second quarter of 2024, the Seoul office transaction index stood at 477.7 points, down 0.3% from the previous quarter and 1.7% year-on-year.
- After rising by more than 10% per year from 2018 to 2022, the index has stagnated.
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analytics - The Seoul office sales market has not seen much change in market conditions, including leasing and supply. Prices have been stagnant since Q3 2022.
- Cap rate spreads have been increasing this year due to stagnant prices and rising rents. If interest rates are cut, office prices are likely to increase.
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Cap. rates continue to rise Favorable rental market will likely continue to drive upward for the foreseeable future |
data - The cap. rate for Q2 2024 is 4.7%, which has been slowly rising since Q4 2022.
- The cap rate spread in Q2 2024 is 120 bps, well below the long-term trend (250-300 bps).
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analytics - Cap. rates are likely to rise further in the future, and here's why.
Stagnant prices due to high interest rates and continued rent increases - due to a favorable rental market are putting upward pressure.
- Cap. rate spreads have also remained low, which will also push cap rates higher.
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Seoul Knowledge Industry Center with a big price drop |
data - The Seoul Knowledge Industry Center Sales Index for Q2 2024 is 200.1 points.
- This is 5.7% lower than the previous quarter. It is down 20.0% from its peak in Q2 2022.
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analytics - The high price growth in knowledge industry centers through 2022 is likely due to the displacement of investment due to housing regulations, not to high prices.
- The relatively large volatility from the peak is also analyzed as a result of investment demand rather than rental demand.
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Seoul Knowledge Industry Center trading volume is up but prices have been slashed |
data - In Q2 2024, Seoul Knowledge Industry Center transaction volume was KRW 166.7 billion, up 34.2% from the previous quarter.
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analytics - Nevertheless, the significant drop in the price index (price) is likely the result of “fire sale deals” by sellers.
- Since land can be purchased with a smaller investment than office space, the investment environment tends to influence the price and volume.
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Office vs. Knowledge Industry Center Compare Sales Index |
data - Office and land prices show similar trends. Land has seen lower growth than office through 2019 and higher growth than office from Q2 2020 through Q2 2022.
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analytics - Based on affordable rents and office availability, Jisan is located in the surrounding neighborhoods of Gasan, Guro, Magok, Songpa, Yeongdeungpo, Seongsu, and Yeongdeungpo, rather than the three core areas (CBD, YBD, GBD), creating a complementary market for offices.
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RSQUARE Expands Services Through Partnership with Building Platform Company Howbuild RSQUARE, a comprehensive commercial real estate service provider, has signed a Memorandum of Understanding (MOU) with Howbuild, an IT-based building platform company, to expand its real estate services. |
RSQUARE Advises on the Sale of a Building in the Gangnam Station Area on Teheran-ro The Yeosam Building, located along Teheran-ro near Gangnam Station, has been listed for sale. RSQUARE has been selected as the advisor for the sale and is currently accepting expressions of interest. The building is fully leased, with Sparkplus, a coworking space company, as the main tenant. |
Venture Business Association Launches 'Startup Committee'
RSQUARE CEO Johnwoo Lee appointed as first chairman
RSQUARE CEO Johnwoo Lee was appointed as the first chairman of the Venture Business Association's Startup Committee. On the 20th, the Venture Business Association launched the Startup Committee at the FKI Tower Conference Center in Yeouido to serve as a connection and hub for the venture startup ecosystem. |
In '24.2Q, the new office supply in Seoul and Bundang areas amounted to 34K py, which is 25% of the previous quarter's total of 138K py. Among the 11 newly completed assets this quarter, 8 were small to medium-sized, with areas under 5,000 py. Approximately 50% of the total supply was in the other zones, primarily in Gangdong's "Godeok" and Gangseo's "Magok," mainly in the form of company headquarters, which limited the impact of new assets on the vacancy rates in major office zones. |
Seoul Metropolitan Area surpasses 10M py in cumulative supply. In the first half of 2024, approximately 610,000 py of logistics centers were newly supplied in the Seoul metropolitan area, bringing the cumulative supply to 10.18M py. The 'Southern Region' accounted for over 240,000 py, which is more than 10% of the region's cumulative supply. This marks the second-largest biannual supply volume in the region's history. |
Office, warehouse, and retail leasing brokerage,
transaction advisory, asset management, and data analytics,
Interior & Remodeling, Overseas Business (Vietnam, Singapore) |
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RSQUARE is Korea's leading commercial real estate services company.
The Research Center's "2024 2nd Quarter Office and Knowledge Industry Center Sales Index Report" and "'Office & Knowledge Industry Center Sales Index Report'" offer insights from top market experts, analyzed using a wide range of market data.
Additionally, RSQUARE has introduced Korea's first commercial real estate analytics service, featuring a database of over 300,000 properties that have been meticulously researched and are continuously updated. We appreciate your continued interest in our services.
The Seoul office sales market has remained stagnant since the third quarter of 2022, with no significant changes in key market factors such as leasing activity and supply. Consequently, the market has shown little movement since Q3 2022.
analytics
Stagnant prices due to high interest rates and continued rent increases
analytics
analytics
RSQUARE CEO Johnwoo Lee appointed as first chairman
RSQUARE CEO Johnwoo Lee was appointed as the first chairman of the Venture Business Association's Startup Committee. On the 20th, the Venture Business Association launched the Startup Committee at the FKI Tower Conference Center in Yeouido to serve as a connection and hub for the venture startup ecosystem.
Seoul Metropolitan Area surpasses 10M py in cumulative supply.
In the first half of 2024, approximately 610,000 py of logistics centers were newly supplied in the Seoul metropolitan area, bringing the cumulative supply to 10.18M py. The 'Southern Region' accounted for over 240,000 py, which is more than 10% of the region's cumulative supply. This marks the second-largest biannual supply volume in the region's history.
transaction advisory, asset management, and data analytics,
Interior & Remodeling, Overseas Business (Vietnam, Singapore)