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Seoul : Modest pace in Seoul office market - Q3 2014

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Seoul : Modest pace in Seoul office market - Q3 2014

In the second quarter of 2014, the South Korean economy grew by 3.5% year-on-year (y-o-y) to a nominal GDP of KRW 367.7 trillion.

The average grade A office rent rose slightly by 0.4% to KRW 29.049 (US$28.1) per sq m and the availability ratio slid by 0.6% to 11.7%, measured on a quarter-on-quarter (q-o-q) basis.

Korean inflation recorded its lowest inflation rate at 1.4% while total retail sales grew by 2.1% YOY showing a sign of modest recovery.

According to the Ministry of Land, Infrastructure and Transport, return on retail property investment rose 0.1% q-o-q to 1.72% in the second quarter of 2014.

In the third quarter, due to excessive debt repayment, some large corporations sold assets to improve liquidity. During this quarter, total investment volume was only approximately KRW 349 billion (US$337mn), generated by five office asset transactions.

Source : DTZ

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