2025.07.19 (토)

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English

Seoul Commercial Real Estate Hits Bottom: Recovery Slower Than Apartments

 

[NewsSpace=Jack Moon] Seoul's commercial real estate market is showing signs of recovery after a period of sluggishness due to high interest rates.

 

In July 2023, the number of commercial building transactions in Seoul increased by 23% compared to the previous month, totaling 187 deals worth 2 trillion won. Although the figure represents a 28.9% decrease from June, it marks a 81.2% increase in YoY.

 

Investment returns are also on the rise, with office spaces in Seoul showing a 1.99% return in Q2, up 0.15 percentage points from the previous quarter. The Gangnam district, in particular, saw significant increases in both office and retail space returns.

 

However, the recovery of commercial real estate is still slower than the residential market, where apartment prices are hitting new records.

 

Industry experts suggest that while the market has not reached the level of the 2020-2021 boom, it is maintaining a positive trend, with expectations of continued stability amid anticipation of potential interest rate cuts.

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