In August, the volume and value of office building transactions in Seoul decreased compared to the previous month, while individual office sales surged more than threefold. Notably, office transactions were concentrated in the newly built Knowledge Industry Center in Magok-dong, reaching the highest monthly volume since 2021, although the transaction value significantly dropped.
According to an analysis of real transaction data by Real Estate Planet on October 8, the number of office building transactions in Seoul fell to seven in August, a 12.5% decrease from eight in July. The transaction value also dropped by 27.0%, from 983.4 billion won to 718 billion won.
However, compared to the same month last year, when there were three transactions worth 73.7 billion won, the volume increased by 133.3% and the value surged by 874.5%. The transaction value was the largest for August from 2021 to 2026, with three transactions exceeding 100 billion won. The highest transaction was for the 'KORNER 136 Building' in Seogyo-dong, Mapo District, which sold for 252 billion won.
Regionally, the transaction value in the Gangnam-Seocho area (GBD) plummeted by 87.8%, from 523 billion won to 640 million won. The Jongno-Junggu area (CBD) saw a slight increase to 128 billion won, while the Yeongdeungpo-Mapo area (YBD) rose to 328 billion won, both up 3.0% and 0.2%, respectively.
In contrast, the volume of office transactions, classified as collective buildings, skyrocketed to 510, a 256.6% increase from 143 in July. This marked the highest monthly transaction volume since 2021. However, the transaction value plummeted by 93.2%, from 1 trillion 953 billion won to 741 million won. Compared to the same month last year, when there were 114 transactions worth 42.9 billion won, the volume increased by 347.4% and the value rose by 72.6%.
The surge in office transactions was largely driven by the newly built Knowledge Industry Center in Magok-dong, with 444 of the 510 transactions (87.1%) occurring there. Consequently, the transaction volume in other regions, excluding major business districts like Gangnam-Seocho, Jongno-Junggu, and Yeongdeungpo-Mapo, increased from 87 to 479, a 450.6% rise.
Most buyers were corporations. All seven office buildings sold in August were purchased by corporations, and 463 of the 510 office transactions (90.8%) were also acquired by corporate entities.
Meanwhile, the total assets of domestic REITs (Real Estate Investment Trusts) reached 129 trillion 510 billion won in August, a 1.7% increase from the previous month. Of this, office assets amounted to 43 trillion 920 billion won, up 0.5% from the previous month and 21.3% from the same month last year.
Jung Soo-min, CEO of Real Estate Planet, stated, "In August, while the transaction volume and value in the Seoul office building market decreased compared to the previous month, the transaction value was the highest for August from 2021 to 2026, with three buildings sold for over 100 billion won. The office sector recorded the highest monthly transaction volume since 2021, with 444 of the 510 transactions occurring in the Magok-dong Knowledge Industry Center, but the transaction value was limited to 741 million won."
* This article has been translated by AI.
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