"This Year's New Office Supply Hits a 10-Year High... Need for Careful Selection by Region"

[Asia Economy Reporter Park Ji-hwan] As the supply volume of new offices this year is expected to reach the highest level in 10 years, there is a forecast that sorting out the quality by region is necessary.

Researcher Shin Seo-jeong of SK Securities stated on the 18th, "This year’s office rental market may experience a polarization of vacancy rates due to the increase in new office supply," adding, "The office buildings scheduled for completion amount to about 37 buildings, 2.57 million square meters, the largest in 10 years."

By region, Yeouido area will supply 520,000㎡ (Park One Tower 1, Park One Tower 2, KB Kookmin Bank Yeouido Integrated Office, Yeouido Post Office Reconstruction Office), Downtown area 220,000㎡ (SG Tower, Gate Tower), Bundang-Pangyo area 200,000㎡ (Hankook Tire New Headquarters, Doosan Bundang Center), Gangnam area 130,000㎡ (HJ Tower, etc.), and 240,000㎡ will be supplied in the metropolitan area excluding Bundang-Pangyo.

Researcher Shin emphasized, "It is necessary to pay attention to the vacancy rate in the Yeouido area, where supply concentration is expected," pointing out that "the vacancy rate increased up to 11% in 2012 when Two IFC and Three IFC were supplied in Yeouido."

He diagnosed, "Building management companies are expected to benefit from the increase in office supply volume and the scale expansion of office REITs," adding, "However, in a situation where various office REITs exist, it is time to sort out the quality based on the location and vacancy rates of each property."

This content was produced with the assistance of AI translation services.