Seoul office rent rises to highest level in three years in Q3

Office rent in the three major business areas of Seoul, Jongno, Gangnam, and Yeongdeungpo, rose to the highest level in three years in the third quarter, the report showed.

According to data from Cushman & Wakefield Korea, a global real estate service company, the average office rent in the third quarter of Seoul's three major business areas was recorded at 120,000 won per 3.3 square meters.

This represents a 3.4% year-over-year increase and the highest level since the third quarter of 2021.

In detail, Gangnam and Seocho (GBD) areas rose 5% year-on-year to 127,000 won, Jongno and Jung-gu rose 1.7% to 120,000 won, and Yeongdeungpo rose 5.1%, respectively, to 105,000 won.

This phenomenon is analyzed to have been caused by a series of purchases and equity investments by strategic investors who want to use the new building as their office building while there is not much supply.