In the first quarter of 2026, the Seoul office sales market experienced a significant contraction, with transaction amounts dropping by more than 50% compared to the previous quarter, alongside a decline in office sales.
According to a report released on May 12 by Real Estate Planet, a commercial real estate platform, based on data from the Ministry of Land, Infrastructure and Transport, the volume of office building transactions in Seoul totaled 23 cases, with a transaction amount of 892.6 billion won in the first quarter of this year.
This represents a 14.8% decrease in transaction volume and a 51.6% decrease in transaction amount compared to the previous quarter (27 cases, 1.8435 trillion won). However, compared to the same period last year (12 cases, 1.2004 trillion won), transaction volume increased by 91.7%, while transaction amount decreased by 25.6%.
Regionally, the Gangnam and Seocho areas (GBD) maintained the same transaction volume as the previous quarter with 8 cases, while other regions recorded 12 cases. In contrast, the Yeongdeungpo and Mapo areas (YBD) dropped from 3 cases to 1, and the Jongno and Jung-gu areas (CBD) decreased from 4 cases to 2.
Transaction amounts fell across all regions, with the CBD experiencing a dramatic decline from 942 billion won in the previous quarter to 64.5 billion won, a drop of 93.2%. The YBD saw a decrease to 16.5 billion won (down 62.2%), the GBD recorded 386.8 billion won (down 8.5%), and other regions totaled 424.8 billion won (down 2.4%).
The office market also showed weakness, with the volume of office transactions in Seoul reaching 271 cases and a transaction amount of 499.2 billion won. This reflects a 20.3% decrease in transaction volume and a 25.8% decrease in transaction amount compared to the previous quarter (340 cases, 673.2 billion won). Compared to the same period last year, transaction volume increased by 0.4%, but transaction amount decreased by 11.6%.
Corporations dominated both office building and office transactions. In the office building market, 15 out of 23 transactions were corporate purchases, accounting for 65.2%. In terms of transaction amount, corporate transactions totaled 766.4 billion won, representing 85.9% of the total.
In the office market, corporate purchases were also the most prevalent, with 142 cases, while individual purchases were active with 126 cases, making up about 46.5% of the total. In terms of transaction amount, corporate transactions reached 421.9 billion won, accounting for 84.5% of the total.
However, the REIT market continued to expand its office assets. As of March 2026, the total assets of REITs in the Seoul area amounted to 123.24 trillion won, a 4.2% increase from the previous month. Among these, office assets reached 43.45 trillion won, up 5.1% from the previous month and 32.8% from the same period last year.
The supply of office facilities also showed an upward trend. According to building permit data from the Ministry of Land, Infrastructure and Transport, the total floor area of office facilities approved for use in the first quarter of this year was 221,476 square meters, a 159.3% increase from the previous quarter. The planned new supply of office facilities is also set to expand by 15.0% to 452,303 square meters compared to the previous quarter, particularly concentrated in Yeongdeungpo, Jongno, and Seongdong districts.
The market contraction is also reflected in investment yield indicators. An additional review of the Real Estate Planet report revealed that the average investment yield for Seoul offices in the first quarter of this year was 2.35%, up from 1.84% in the previous quarter, although there were notable regional disparities. The investment yield in the CBD was 2.45%, in the GBD it was 2.65%, and in the YBD it was 2.20%, while other regions remained at 1.78%. In specific commercial areas, Gwanghwamun recorded a relatively high yield of 3.27%, and Gangnam-daero followed with 3.21%, while most other areas reported yields in the 1-2% range.
Jung Soo-min, CEO of Real Estate Planet, stated, “In the first quarter of this year, the Seoul office sales market saw a decrease in large asset transactions, causing the transaction amount for office buildings to fall below 1 trillion won on a quarterly basis. As the expansion of office assets within REITs continues, along with an increase in the area of approved office facilities and a corporate-driven purchasing trend, the adjustment of price expectations between buyers and sellers and the resumption of large transactions in key regions will influence market trends in the second quarter.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.