Seoul prime office rents record highest increase since 2008

Face rents grew 8.1% in the first quarter of 2023.

Marketing face rents for Seoul prime offices averaged KRW113,100/py according to Savills, up 8.1% YoY, the highest rental increase since Q4/2008. 

By district, the GBD witnessed double-digit growth of 12.3% YoY to KRW114,300/py, exceeding the other two districts for the fourth consecutive quarter. In the CBD, rents increased 6.2% YoY to KRW119,200/py and in the YBD 5.7% to KRW96,000/py.

Here’s more from Savills: 

The GBD outperformed due to elevated levels of demand, resulting in large rent increases upon renewal or settlement of new leases. For the newly completed Scale Tower, marketing rents are known to be amongst the highest across Seoul, so current rates of rental growth are expected to continue. 

Average maintenance fees stood at KRW44,900/py, up 5.4% YoY, which represents the greatest increase in maintenance fees since Q4/2008, due to high inflation. The rate of increase was 5.2% YoY to KRW47,000/py in the CBD, 5.9% to KRW43,100/py in the GBD, and 4.8% to KRW43,000/py in the YBD.