Seoul Office Building Transaction Value Rises for Second Straight Quarter; Office Transaction Value More Than Halved

Office building transactions down 24% from previous quarter
Transaction value up 3.3%... GBD up 402.8%
Office transactions up 104.5% from previous quarter
Transaction value down 53.7% to 1.2024 trillion won

In the third-quarter Seoul office market this year, office buildings (general buildings) and offices (units in multi-unit buildings) moved in opposite directions. For office buildings, transaction value rose for the second consecutive quarter despite a decline in the number of transactions. By contrast, the number of office transactions increased, while their total value more than halved.

A densely packed office district in central Seoul. Photo by Heo Younghan younghan@.

According to an analysis by Real Estate Planet of actual transaction data from the Ministry of Land, Infrastructure and Transport on Nov. 11, 19 office buildings changed hands in Seoul in the third quarter, for a total of 1.776 trillion won. Compared with the previous quarter, the number of transactions fell 24%, while transaction value rose 3.3%. Year over year, the number of transactions and transaction value fell 26.9% and 9.6%, respectively.

By district, the GBD (Gangnam-gu and Seocho-gu) recorded the largest increase in transaction value. The number of transactions was unchanged from the previous quarter at six, but transaction value rose 402.8%, from 128.3 billion won to 645.1 billion won. In particular, Gangnam 358 Tower in Yeoksam-dong, Gangnam-gu, recorded the highest-priced transaction of the third quarter at 445 billion won.

The YBD (Yeongdeungpo-gu and Mapo-gu) recorded five transactions totaling 655.5 billion won. The number of transactions rose 400% from the previous quarter, while transaction value fell 19.2%. In the CBD (Jongno-gu and Jung-gu), four transactions took place, unchanged from the previous quarter, while transaction value declined from 648.9 billion won to 268.6 billion won. In other areas (ETC), the number of transactions fell 71.4%, from 14 to four, while transaction value rose 58.7%, from 130.3 billion won to 206.8 billion won.

In the third quarter, 734 office transactions took place in Seoul, up 104.5% from the previous quarter. Transaction value fell 53.7%, from 2.5949 trillion won to 1.2024 trillion won. Compared with the same quarter a year earlier, the number of transactions was up 114% and transaction value was up 74.8%.

By district, the GBD recorded 63 transactions worth 155.6 billion won, up 18.9% and 192.9%, respectively, from the previous quarter. In the YBD, the number of transactions rose from 41 to 46, while transaction value increased from 14.3 billion won to 630.2 billion won. The CBD recorded 13 transactions worth 299.2 billion won, down 83.5% and 84.2%, respectively, from the previous quarter. In other areas, the number of transactions rose from 186 to 612, while transaction value fell from 632 billion won to 117.4 billion won.

By type of buyer, corporations accounted for all 19 third-quarter office building purchases in Seoul. Sellers included corporations in 14 transactions (73.7%) and individuals in five (26.3%).

In the office market, corporate buyers accounted for 585 transactions, or 79.7% of the total. Corporations sold offices in 483 transactions, while individuals sold them in 102.

Jeong Sumin, CEO of Real Estate Planet, said, "The number of office building transactions in Seoul fell from the previous quarter in the third quarter, while transaction value edged up. On a monthly basis, both the number of transactions and transaction value declined for three consecutive months." He added, "Meanwhile, investment activity is also taking place in forms that do not involve a transfer of real estate ownership, including share deals centered on large office buildings and recapitalizations, or recaps, aimed at recovering invested capital and restructuring capital."

This content was produced with the assistance of AI translation services.