At the end of last year, the transaction amount for office and commercial buildings in Seoul showed a decline of more than half compared to the previous month.
According to an analysis by the commercial real estate data corporation Rsquare on the 4th, the total transaction amount for office and commercial buildings in Seoul in December last year was recorded at 1.5 trillion won. This represents a decrease of 58.1% compared to the previous month (3.7 trillion won). The number of transactions also dropped to 144, down 12.2% from the previous month (164).
The number of transactions for office buildings remained the same at 10 as the previous month, but the transaction amount decreased by 64.3% to 659.8 billion won compared to the previous month (1.9 trillion won). The number of transactions for commercial buildings was 131, a decrease of 12.7% from the previous month (150). The transaction amount also fell to 863.9 billion won, down 43.4% from the previous month (1.5 trillion won).
Ryu Kang-min, head of the Rsquare Research Center, noted, "Although the market stabilization stage has not yet been reached, 2024 has shown a recovery in transactions due to stable leasing and interest rate cuts," and he projected that "in 2025, improved investor sentiment is expected due to expectations of further interest rate cuts."
Rsquare Analytics calculates the transaction amount and transaction counts based on actual transaction prices from the Ministry of Land, Infrastructure and Transport, excluding collective buildings and equity transactions. The term 'office building' refers to facilities for business purposes, while 'commercial building' refers to sales, accommodations, and primary and secondary neighborhood living facilities.