The Seoul and Bundang office investment market reached a record 26.1 trillion won ($18.3 billion) last year, driven by strong transaction activity in Seoul's central business district including Gwanghwamun and Jongno, which accounted for 45% of total deals.
According to the "Q4 2025 Office Market Real Report" released by commercial real estate services firm R.Square on the 3rd, the combined Seoul and Bundang office market recorded 26.1 trillion won in transactions last year. This represents a 62% increase, or 10 trillion won, compared to 2020's 16.1 trillion won, reflecting sustained growth in the commercial real estate sector.
The fourth quarter alone saw 6.9 trillion won in transactions. The CBD led market activity, accounting for 45% of total transaction value. Signature Tower near Euljiro 3-ga Station traded for 1.0346 trillion won, while LX Gwanghwamun Building on Saemoonan-ro in Jongno-gu changed hands at 512 billion won.
The leasing market maintained steady momentum amid stable demand. Seoul's average office vacancy rate fell to 6.2% in Q4, down 0.4 percentage points from the previous quarter, marking three consecutive quarters of decline. The Yeouido Business District recorded the lowest vacancy rate in Seoul at 1.9%, as pent-up demand for ultra-large office spaces quickly absorbed available inventory. The CBD and Gangnam Business District maintained stable rates at 4.5% and 4.8% respectively. Bundang, however, rose slightly to 6.3% due to new vacancies.
A growing preference for premium assets has created market polarization, with vacancy rates declining for large and ultra-large offices while rising slightly for mid-sized and smaller properties.
A notable shift emerged in transaction structures last year, with 46% of total deal value executed through beneficiary certificates—a strategic choice by investors seeking acquisition tax savings and faster capital deployment. Strategic investors acquiring properties for corporate headquarters also emerged as a significant market force, accounting for approximately 40% of transactions.