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March 2022 | Korean Real Estate Market Trend

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Major issues and trends in the transaction and leasing market

Insights & recommendations

 

Seoul’s office market, which is centered around three major districts, is seeing a decline in new supply and relentless expansion by tech tenants making it difficult for occupiers to efficiently find suitable space. Tenant demand is extending to new business districts that may supplement major districts. In addition, the spread of remote work and the increasing use of distributed offices are accelerating. Hybrid working is a major trend in the leasing market.

As both tech and biotech industry tenants continue expanding, we expect the current landlords’ market to continue in 2022. Furthermore, we expect that the upcoming business districts will continue to attract tenants relocating for wider options and more reasonable rental prices.

    • We recommend tech tenants consider areas such as Pangyo, Bundang, Gwacheon, and Seongsu-dong and biotech industry tenants to consider Magok, and Songdo in Incheon as alternatives to Seoul’s city center.
    • We recommend investors pursue a strategy based on macroeconomic conditions and ESG standards in response to rising interest rates. In addition, investors should prepare a strategy with a diverse asset base to prepare for fall in the return on investment (ROI) due to increasing interest rates and reduced liquidity.

     


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    March 2022 | Korean Real Estate Market Trend

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    Related Experts

    Judy Jang

    Director

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    Judy Jang has joined Colliers Korea as Associate Director of Research & Advisory Services in March 2018. 
    She is responsible for research outputs and play a major role to drive a more client-oriented research approach to support business win rate.

    Judy has over 15 years of experience in real estate business and 6 years in IT industry. Prior to joining Colliers, she has served as a Head of Research for 7 years in Cushman & Wakefield Korea. She also had worked at Golden Bridge Property Management (Vanguarz Asset), Polaris HQ, LAN bird Technology Company, and Alibaba Korea.

     

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    Robert Wilkinson

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    Rob is also a member of the Colliers International Asia Leadership team.

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