Q1 Vacancy Rate in Seoul Street-Level Commercial Areas Decreases for the First Time Since COVID-19

The streets around Ewha Womans University campus in Seodaemun-gu, Seoul are regaining vibrancy with citizens and students./Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ryu Tae-min] As the COVID-19 situation shows signs of easing, Seoul's representative commercial districts are regaining vitality.

According to global real estate consulting firm Cushman & Wakefield on the 30th, vacancies in areas such as Hongdae, Garosu-gil, Hannam·Itaewon, and Cheongdam significantly decreased in the first quarter of this year, resulting in the vacancy rate of the six major street commercial districts dropping for the first time since the COVID-19 pandemic.

In particular, Garosu-gil saw a 7.5 percentage point decrease in vacancy rate from 36.4% in the fourth quarter of last year to 29.0% in the first quarter of this year, as new stores including the Diptyque flagship store, jewelry shops, and cafes opened. On the other hand, Myeongdong experienced an increase in vacancy rate due to closures of Adidas and Missha stores, but Cushman & Wakefield expects the newly opened Apple Store in Timewalk Myeongdong to revitalize the commercial district.

The trend of online companies expanding offline is also growing. Musinsa, a leading online platform, opened its first store in Hongdae amid the COVID-19 downturn. It is also reported to be preparing to open a second store near Gangnam Station. With the full lifting of social distancing measures accelerating the recovery of the retail industry, further decreases in vacancy rates are expected this year.

A Cushman & Wakefield representative stated, “The retail industry, which could not avoid a prolonged slump due to COVID-19, is regaining vitality recently with expectations for the endemic phase and subsequent reopening,” adding, “With the full lifting of social distancing, the recovery speed of the retail industry is expected to accelerate, leading to further decreases in vacancy rates.”

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