Seoul sees a decline in CBD office supply with relocation of company headquarters, renovation projects

The supply of class A offices in Seoul, which peaked in 2020, continues to decrease, according to Colliers.

In third quarter 2021, K-Square City (formerly called Citibank’s Dadong office building) is scheduled to be added to supply after its remodeling is completed. With lower CBD new supply through 2024, Colliers expect vacancy to be stable or declining. If future supply in 2023 arrives on schedule, vacancy will likely increase. However, the large-scale relocations of Samsung Group and Hana Financial Group are major variables in the firm’s forecast. The building that Samsung is consolidating affiliates into, the Seosomun Building (former Hoam Art Hall and owned by Samsung Life Insurance), is itself being considered for redevelopment. Moreover, Hana Financial Group, which is currently located in the CBD, is planning to relocate its affiliates including Hana Bank, Hana Financial Investment, Hana Card and Hana Life Insurance, to Chungna in Incheon by 2024.

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