Seoul continues to be landlord-favourable as vacancy rates continue to decline
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Due to the economic downturn and decline in market liquidity, global tech companies underwent large-scale job cuts and reduced investments in startups. However, the impact on the Korean leasing market was minimal.
- Despite concerns about tech companies reducing their leased areas, vacancy rates continued to fall, and rents rose in Q4 2022.
- Tech companies are unwilling to reduce office space post job cuts due to their preferences for the GBD and the inability to expand later when the market recovers, due to the limited availability of grade A offices.
- In 2023, rent will continue to rise due to stable demand and inflation. The landlord-favored leasing market is expected to continue for the time being.