Daiso and Olive Young Return, Foreign Tourists Flock In... Gangnam Vacancy Rate Plummets by 5.1%P [Real Estate AtoZ]

The vacancy rates in major commercial districts of Seoul are declining, signaling a recovery. This trend is driven by increased demand from foreign tourists and the return of brand tenants to offline retail, resulting in a rapid reduction of vacancies in key areas.

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According to the Seoul Retail MarketBeat report for the third quarter of 2025, released on December 5 by global real estate consulting firm Cushman & Wakefield, the average vacancy rate across the seven major street-level commercial districts in Seoul stood at 14.3%. This represents a decrease of 0.9 percentage points compared to the previous quarter and a drop of 0.8 percentage points year-on-year.

The Gangnam district saw its vacancy rate plummet by 5.1 percentage points, from 18.9% to 13.8%. The rapid decrease in vacancies was driven by the return of major brands such as Musinsa, Olive Young, and Daiso to Gangnam-daero, an area that had been slow to recover since COVID-19.

In the Hannam and Itaewon districts, the vacancy rate fell from 11.2% in the previous quarter to 7.6%. The entry of brands such as Allo, Adidas pop-up stores, and On Running has fueled demand for these rare and sought-after commercial areas.

Seongsu experienced a slight increase in its vacancy rate to 4.2%, but the district’s competitiveness is strengthening as global brands open flagship stores. Major brands such as H&M and T Factory have expanded into the Yeonmujang-gil area.

Myeongdong maintained a steady vacancy rate at 4.9%, while Cheongdam recorded a 1.5 percentage point decrease from the previous quarter to 11.9%. In contrast, Hongdae’s vacancy rate rose by 2.2 percentage points to 12.7% due to the departure of some tenants. Garosu-gil continued to experience polarization among commercial districts, with a vacancy rate of 45.2%.

Notable new leases in the third quarter included Musinsa Standard Hongdae (1,980㎡), Olive Young Gangnam (1,160㎡), Time Cheongdam (1,860㎡), H&M Seongsu (850㎡), and the planned Musinsa Megastore Yongsan (2,900㎡).

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