Average effective Grade A office rents in Seoul increased by 0.55% q-o-q to KRW 20,836 per sq. m. in Q4 2017, supported by stable occupier demand across all three major business districts.
The increase in the minimum wage, which rose by 16.4% effective January 1, 2018, has prompted some retailers to consider reducing the number of new hires and close underperforming stores.
New Grade A logistics supply in Greater Seoul in Q4 2017 totaled 204,000 sq. m., bringing the total new supply for the year to 625,680 sq. m.
Transaction volume increased by 50.2% q-o-q to KRW 2.59 trillion, while the number of completed transactions rose to 41. Most deals were offices buildings, followed by retail and logistics.