[NewsSpace=Jack Moon] The Central Business District (CBD) around Gwanghwamun, which boasted nearly 100% occupancy rates despite uncertain economic conditions, is expected to suffer from vacancy pains in the future. This is due to the concentration of large-scale new supply through reconstruction projects after the second half of 2026.

According to the commercial real estate industry on the 18th, from 2026, office supply of about 400,000㎡ in gross floor area is scheduled in areas such as Gongpyeong, Supyo, Sewoon districts, and Hyoje-dong in Jongno-gu. This large-scale office volume, equivalent to 55 soccer fields, will be concentrated from the second half of 2026 to 2027.

Therefore, a rise in vacancy rates is inevitable in the future for this region. According to real estate data provider RSQUARE, the office vacancy rate (including new construction) in the CBD area in the second quarter was 2.6%, significantly below the natural vacancy rate of 5%.

The CBD is expanding to both east and west. To the east, prime grade offices will be supplied beyond the Gongpyeong and Sewoon districts to Hyoje-dong near Gwangjang Market. To the west, areas around Sunhwa-dong and Hoehyeon-dong near Seoul Station are also expanding through various redevelopment projects.

Moreover, projects originally planned for residential use are changing to office use due to construction costs, leading to concerns about oversupply. For example, the Sewoon 6-3-3 district project, which aimed to be "Korea's Roppongi Hills," changed its plan from urban living housing to office use due to soaring construction costs.

Other major projects include:

- Gongpyeong 15·16 district: 143,431.88㎡ office and commercial facilities

- Hyoje-dong office development: 77,119㎡ office building by DL E&C

- Supyo Urban Environment Improvement Project: 117,813㎡ large-scale office building

An industry insider commented, "Until now the CBD area has had high demand and low supply, but the simultaneous progress of large-scale redevelopment projects will inevitably lead to vacancies in the coming years. Nevertheless, the area is still a preferred business ground for government, public institutions, foreign companies, and domestic conglomerates - vacancies won't be a significant problem in the mid to long term."