New rental activity occurs across all submarkets except the Central

• In Q4 2025, net absorption in the SCA market reached 123,100 pyeong. The annual net take-up totalled 507,400 pyeong. For the first time in four years, annual net absorption exceeded new supply in 2025, signalling a shift towards a balanced market.
• The South submarket recorded net absorption of approximately 118,500 pyeong in the quarter, marking the highest level in two years since Q4 2023. Tenants from various sectors, including 3PL, e-commerce, manufacturing and F&B, signed leases.

SCA vacancy rate achieves its lowest level in eight quarters

• In Q4 2025, a total of six new logistics centres, totalling 98,400 pyeong, were delivered to the SCA market. The South submarket saw the highest supply with four new centres completed, while the South-east and West submarkets each recorded one new centre completion.
• The overall vacancy rate declined to 15.2%, extending its downward trend for the fourth consecutive quarter. The West was the only submarket to record an increase in vacancy following the departure of a tenant that had master-leased an entire centre.

The transaction of the largest standalone logistics asset is now complete

• Net effective rents in the SCA market reached KRW 32,400, rising 0.4% q-o-q. All submarkets recorded rental growth, with the North posting the highest increase q-o-q, driven by one centre in Namyangju that raised rents significantly.
• The logistics investment market reached KRW 2.13 trillion in Q4 2025, up 54% q-o-q and 167% y-o-y. The most notable transaction was the Cheongna Logistics Center, traded from Brookfield Asset Management to Kreate Asset Management (KKR) for about KRW 1.03 trillion.

Outlook: Cap rates are forecast to compress by 10 bps from current levels in 2026

• Supply in 2026 is expected to be approximately 65% of 2025 levels, with continued demand potentially resulting in net absorption exceeding new supply. The vacancy rate is forecast to stabilise.
• Whilst foreign investor appetite remains focused primarily on logistics assets, domestic institutional investors are expected to deploy greater capital. Core assets and large-scale transactions are expected to remain active as liquidity conditions strengthen.