SEOUL, July 29 (Korea Bizwire) — With strong social distancing measures enforced to limit the spread of the coronavirus, the number of vacant commercial properties is on the rise, and rents are falling.
The Korea Real Estate Board reported a 9.5 percent vacancy rate for large-sized stores and a 6.5 percent vacancy rate for small shops in Seoul.
With an increasing number of store closings following a steep drop in the number of foreign tourists, vacancy rates of small shops in the Myeongdong shopping district reached 43.3 percent, compared to 31.9 percent in Itaewon and 22.6 percent in the Hongdae/Hapjeong neighborhood.
With the increasing number of empty shops, rental fees have also decreased. The average rental fee for large-sized stores in the second quarter of this year was 0.21 percent lower than the previous quarter, reaching 25,500 won (US$22.18) per square meter.
Rental fees for small shops stood at 19,100 won per square meter, and aggregate stores at 27,000 won, for drops of 0.21 percent and 0.15 percent, respectively, since the previous quarter.
Image Credit: Yonhap / firstname.lastname@example.org