The Seoul commercial and office real estate market is experiencing a shift as the influence of large transactions on overall deal volume has lessened, leading to a more distributed pattern of mid-sized deals.
According to a report from AlSquare on September 18, AlSquare Analytics analyzed data from the Ministry of Land, Infrastructure and Transport, revealing that in July, the transaction volume for Seoul's commercial and office real estate reached 2.6272 trillion won, with 184 transactions recorded.
The number of transactions increased by 12 from the previous month’s 172, marking a 7.0% rise. However, the transaction volume decreased by 1.843 trillion won from June’s 2.8115 trillion won, a decline of 6.6%. The average transaction value also fell from 16.35 billion won to 14.28 billion won, a drop of 12.6%.
Notably, the impact of large transactions, which typically drive the overall volume, has diminished compared to the previous month. In both June and July, there were six transactions exceeding 1 billion won, but in June, the largest transaction was worth 8.112 billion won, accounting for 28.9% of the total monthly volume. In contrast, July's largest transaction was valued at 4.450 billion won, representing only 16.9% of the total.
The most significant transaction in July was the sale of the Gangnam 358 Tower in Yeoksam-dong for 4.450 billion won. Other notable transactions included the Homeplus Yeongdeungpo store at 3.500 billion won, the LC Tower in Donggyo-dong at 2.650 billion won, the A1 Tower in Dangsan-dong at 1.630 billion won, the Case Square in Donggyo-dong at 1.500 billion won, and the G Square in Gwanghwamun at 1.210 billion won.
This trend indicates that the market in July saw various mid-sized assets, including office and retail facilities, being traded, which has somewhat alleviated the phenomenon of monthly transaction volumes being heavily influenced by a single large deal.
However, compared to the same month last year, both transaction volume and number of deals have decreased. In July 2025, there were 190 transactions with a total volume of 2.9418 trillion won, representing declines of 3.2% and 10.7%, respectively, in July 2026.
Despite this, cumulative transactions for the year have increased compared to last year. From January to July, the total number of transactions reached 1,217, up 17.2% from 1,038 during the same period last year. The cumulative transaction volume for the same period was 13.9693 trillion won, an 8.2% increase from 12.9054 trillion won in the previous year.
The increase in the number of transactions outpaced the growth in transaction volume, resulting in a trend of lower average deal sizes.
AlSquare's research center stated, "To understand the actual market trends, it is essential to analyze not only the fluctuations in monthly transaction volumes but also the changes in the size and distribution of individual deals."
Meanwhile, AlSquare Analytics has reported a cumulative client base of 150 companies, with approximately 74% of these clients being financial and investment-related firms, including trusts, asset management companies, and foreign institutional investors.
* This article has been translated by AI.
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