The CBD’s net take-up drops significantly due to notable relocations to other submarkets

• Seoul exhibited the largest negative net absorption figure, exceeding 100,000 sqm at -102,600 sqm, mostly driven by substantial tenant moves in the CBD. While CBD and Yeouido recorded negative values in the quarter, Gangnam alone saw positive net take-up.
• Viva Republica leased all of the upper floors (14 floors) of OPUS 459, which was completed previous quarter in Gangnam. The CBD saw a major departure with DL Group’s relocation to Magok from D Tower Donuimun, vacating approximately 80% of the building.

The CBD’s vacancy rate sees a sharp rise due to the scheduled departures of several anchor tenants

• No new office buildings were supplied in Q3 2025.
• Seoul’s vacancy rate rose 159 bps q-o-q to 4.8%. The CBD saw a surge of 408 bps q-o-q, reaching 8.5%, as major tenants such as DL E&C left the district. However, this increase is likely to be transient as other tenants, such as NongHyup, will fill the vacant space.

An office deal outside Seoul worth over KRW 1,000 billion concludes during the quarter

• Seoul’s net effective rent recorded KRW 146,717 per pyeong, up 0.8% q-o-q and 4.5% y-o-y, driven by net rent increases. Yeouido led quarterly growth at 2.1%. Yeouido’s rent-free periods contracted, while the CBD and Gangnam saw rent-free expansion.
• Quarterly office deal volume was KRW 6.6 trillion. The most notable deal occurred in Pangyo: Mirae Asset’s TechOne sale to Korea Investment-Kakao Bank consortium for KRW 1,982.0 billion, marking the most prominent transaction this quarter.

Outlook: Upcoming supply in the CBD is set to shift the market

• As the CBD expects large-scale new supply of Grade A buildings starting from 2026, both existing and a newly supplied buildings may expand rent-free periods to maintain competitiveness and attract tenants, leading to potential reversion in rents.
• With expectations for further liquidity enhancement driven by the gradual decline of senior loan rates, investment appetite for the office sector, especially in Yeouido and Gangnam with limited new supply, is expected to continue, led primarily by domestic investors.