This file photo, taken Feb. 13, 2021, shows an almost empty street of Seoul’s shopping district of Myeongdong amid the pandemic. (Yonhap)
SEOUL, April 29 (Korea Bizwire) — With the prolonged COVID-19 outbreak resulting in restrictions on socializing, South Korea’s commercial property vacancy rate continues to rise.
The vacancy rate of mid and large-sized commercial properties across the country averaged 13 percent in the first quarter of this year, up 0.6 percentage points from the previous quarter, according to the data from the Korea Real Estate Board.
In Seoul, the vacancy rate of mid and large-sized commercial properties in Myeongdong, a popular tourist and shopping district, reached 38.4 percent due to an increase in the number of business closures resulting from the decline in the number of foreign tourists.
The vacancy rates of small-sized commercial properties in Seoul’s hip districts of Itaewon and Hongdae stood at 31.9 percent and 22.6 percent, respectively, negatively impacted by the government’s ban on gathering at entertainment facilities and the suspension of their operations.
Along with the increase in the number of vacant commercial properties, the rental cost of commercial properties declined.
The rental cost of mid and large-sized commercial properties across the country averaged 25,600 won (US$23.10) per square meter in the first quarter of this year, down 0.26 percent from a quarter ago.
For Seoul, the rental cost of mid- and large-sized commercial properties averaged 52,300 won per square meter, down 0.41 percent compared to a quarter ago, while rent at small-sized commercial properties and collective commercial buildings fell by 0.31 percent and 0.25 percent, respectively, to 49,800 won and 47,100 won per square meter.
Ashley Song (ashley@koreabizwire.com)
