SEOUL, Jul. 17 (Korea Bizwire) — The number of empty offices in the South Korean capital is on the rise due to the increased supply of new office buildings in the property market and companies relocating to different areas, new industry data has revealed.
According to statistics released by property consultant KyoboRealco, the vacancy rate in the South Korean office market during the second quarter of this year was estimated to be 8.65 percent, up 0.24 percent from the previous quarter.
Apart from Gangnam District and the surrounding areas, the only place in Seoul where the vacancy rate for office space decreased, the rest of Seoul saw empty offices increase during the second quarter.
In Yeouido, the number of empty offices accounted for just over 10 percent, up 1.52 percent compared to the first quarter of 2017, which KyoboRealco said was influenced by the sale of the Hewlett-Packard headquarters, which was previously located in the area.
The overall vacancy rate of office space in the downtown area also increased slightly, as companies that previously occupied buildings such as Samsung Life Insurance Tower, Ace Tower and Seoul City Tower have recently moved out.
“In the downtown and Yeouido area, despite the rise of empty office buildings, newly built and remodeled offices contributed to an increase in the average rental price,” a representative of KyoboRealco said.