Seoul prime office vacancy edges higher to 4.2% in Q2 as occupiers reshuffle
The increase signals occupier reshuffling rather than broad weakness, with GBD remaining tight at 1.7% and potentially sustaining stronger landlord leverage there than in CBD.
Seoul’s prime office vacancy rose 0.2 percentage points quarter-on-quarter to 4.2% in Q2 2026, as net absorption turned negative at 11,600 square metres.
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CBD recorded negative net absorption during the quarter.
Seoul's prime office market recorded negative net absorption of 11,600 square metres during the second quarter of 2026, with the overall vacancy rate rising 0.2 percentage points quarter-on-quarter to 4.2%, according to Savills.
Savills said the CBD accounted for the decline, recording negative net absorption of 16,300 square metres as vacancy increased to 6.0%. The agency attributed the softer result to several large occupier departures despite ongoing leasing activity.
Among notable transactions, Hanwha Ocean relocated from Grand Central to Daeshin 343, while LG H&H moved into Seoul City Tower. Bae, Kim & Lee LLC, Korea Inclusive Finance Agency and CJ Olive Young all expanded their office footprints, partially offsetting newly created vacancies.
However, Savills said refurbishment works across Hanwha Group properties and office optimisation by SK Group generated substantial vacant space, with Hana Bank, Musicow, SK ON and SK Telecom all vacating large premises during the quarter.
The GBD remained the city's tightest office market, with vacancy holding at 1.7% for a third consecutive quarter. Savills said expansion by companies including The Founders, Craver Corporation, Tesla and Simmons Korea largely offset vacancies created by Lotte Property & Development's co-working operation and Clover Games.
In the YBD, redevelopment activity continued to drive tenant relocations. Savills highlighted Mirae Asset Securities' move into FKI Tower, together with expansions by Woori Investment Securities and Apple, helping deliver positive net absorption of 4,700 square metres and reducing vacancy by 0.2 percentage points to 4.2%.