The Seoul office sales market contracted in the first quarter, with transaction amounts dropping by more than 50% compared to the previous quarter, and office sales also experiencing a decline.
According to a report released on the 12th by Real Estate Planet, a commercial real estate platform, based on actual transaction data from the Ministry of Land, Infrastructure and Transport, the volume of office building transactions in Seoul (general buildings) for the first quarter of 2026 was recorded at 23 transactions, totaling 892.6 billion won.
This represents a 14.8% decrease in transaction volume and a 51.6% decrease in transaction amount compared to the previous quarter (27 transactions, 1.8435 trillion won). However, compared to the same period last year (12 transactions, 1.2004 trillion won), transaction volume increased by 91.7%, while transaction amount decreased by 25.6%.
By region, the Gangnam and Seocho areas (GBD) maintained the same transaction volume as the previous quarter with 8 transactions, while other regions recorded 12 transactions. In contrast, the Yeongdeungpo and Mapo areas (YBD) dropped from 3 transactions to 1, and the Jongno and Jung-gu areas (CBD) decreased from 4 transactions to 2.
Transaction amounts fell across all regions. Notably, the CBD saw a dramatic decline from 942 billion won in the previous quarter to 645 million won, a drop of 93.2%. The YBD decreased to 165 million won, down 62.2%, while the GBD recorded 386.8 billion won, an 8.5% decrease, and other regions saw a 2.4% decline to 424.8 billion won.
The office (multi-unit building) market also showed weakness. In the first quarter, the volume of office sales in Seoul was 271 transactions, totaling 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 transactions, 673.2 billion won). Compared to the same period last year, transaction volume increased by 0.4%, but transaction amount decreased by 11.6%.
In both office buildings and office sales, corporate buyers dominated the market. In office building transactions, 15 out of 23 transactions, or 65.2%, were made by corporations. In terms of transaction amount, corporate transactions accounted for 766.4 billion won, or 85.9% of the total.
In the office market, corporate purchases were the highest at 142 transactions, but individual purchases were also active at 126 transactions, making up 46.5% of the total. In terms of transaction amount, corporate transactions reached 421.9 billion won, or 84.5% of the total.
However, the REIT market continued to see growth in 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.
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 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 areas such as Yeongdeungpo, Jongno, and Seongdong.
The market contraction is also reflected in investment return indicators. An additional review of the Real Estate Planet report revealed that the average investment return rate for Seoul offices in the first quarter was 2.35%, an increase from 1.84% in the previous quarter, although there were notable regional disparities. The investment return rate in the CBD was 2.45%, in the Gangnam area (GBD) it was 2.65%, and in the Yeouido area (YBD) it was 2.20%, while other regions remained at 1.78%. In specific commercial areas, Gwanghwamun showed a relatively high return rate of 3.27%, and Gangnam-daero recorded 3.21%, while most other areas fell within 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 for the quarter. With the ongoing expansion of office assets within REITs, an increase in the area of approved office facilities, and a corporate-driven buying 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 and beyond.”
* This article has been translated by AI.
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