"Is Myeongdong Reviving? Vacancy Rate Drops to Single Digits Thanks to Tourists... What About Garosugil?"

Seoul's 6 Major Commercial Districts Show Gradual Recovery

Myeongdong view. Photo by Yonhap News

The vacancy rate in Myeongdong has significantly decreased. This is thanks to the sharp increase in foreign tourists visiting Myeongdong amid a gradual recovery in vacancy rates across major commercial districts in Seoul this year.

According to the "Seoul Retail Street Market Report" released on the 17th by Cushman & Wakefield Korea, the average vacancy rate for the six major commercial districts in Seoul in the second quarter was 18.3%, down 0.4 percentage points compared to the same period last year.

In particular, Myeongdong's vacancy rate dropped significantly due to the increase in foreign tourists. The vacancy rate in Myeongdong's commercial district in the second quarter was 6.8%, a decrease of 7.6 percentage points compared to the same period last year, recording the lowest vacancy rate among major commercial districts. Myeongdong is the area in Seoul most visited by foreign tourists. The number of foreign tourists visiting Myeongdong last year increased more than eightfold compared to 2022.

On the other hand, Garosugil showed the highest vacancy rate among Seoul's major commercial districts. The vacancy rate in Garosugil in the second quarter was 39.4%, up 2.9 percentage points from the same period last year. The report explained, "As foot traffic has dispersed to areas such as Hannam, Seongsu, and Dosan Park, the overall vibrancy of the Garosugil commercial district has somewhat declined," adding, "While vacancies continue along the main road of Garosugil, the side street commercial area, Serosugil, is showing stability with ongoing leasing activities."

Additionally, Hannam and Itaewon showed a vacancy rate of 11.5%, Hongdae 14.4%, Cheongdam 17.4%, and Gangnam 20.0%, respectively.

The six major commercial districts in Seoul have also recovered to pre-COVID-19 pandemic levels in terms of sales. In Myeongdong, supported by the increase in tourists, sales in the first half of this year recovered to 116% of the same period in 2019. Myeongdong was also the commercial district with the highest number of new store openings from the second half of last year through the first half of this year.

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