Seoul Office Sales Index in Q4 Last Year Rises 1.7% Year-on-Year

[Asia Economy Reporter Park Jihwan] The office sale prices in the Seoul area showed a slight increase in the fourth quarter of last year.

According to the 4th quarter report of last year on the Aegis-Daishin Seoul Office Sales Index released by Aegis Asset Management and Daishin Securities on the 25th, the Seoul office sales price index stood at 351.5 points, up 0.8% compared to the previous third quarter (348.7 points). Compared to the same period last year (345.7 points), it rose by 1.7%. The report set the 2001 Seoul office sales price index as the base value of 100 points.

The slowdown in the increase rate of Seoul office sales prices last year is interpreted as a partial adjustment of the trend that had risen by more than 10% in 2018. The volume of Seoul office transactions during this period was about 10.5 trillion KRW, similar to the highest transaction volume recorded in 2018 (10.8 trillion KRW).

Also, since 2017, the transaction volume has continuously recorded over 9 trillion KRW, indicating that the market size has expanded compared to the past.

The report explained that changes in Seoul office sales prices have shown a proportional relationship with the growth rate of Gross Domestic Product (GDP) since 2010, after the global financial crisis, and an inverse relationship with interest rates.

Aegis Asset Management and Daishin Securities forecasted, "The decline in interest rates due to economic slowdown and the expansion of the transaction market size will have a positive impact on office investment," adding, "Due to the economic slowdown, a decrease in sales in low-rise retail and a reduction in landlord demand are also expected, so rather than a high price increase as in the past, an annual increase of around 2% is anticipated."

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