Seoul Commercial Real Estate Transactions Reach 1.9 Trillion Won, Up 3.1 Times Year-on-Year

In January, the volume of commercial real estate transactions in Seoul reached approximately 1.9 trillion won, marking a 3.1-fold increase compared to the previous year. Analysts say that this indicates a relatively robust performance for January, which is typically considered an off-season for such transactions.

According to commercial real estate company RSquare on March 7, the total transaction volume and the number of commercial real estate deals in Seoul last month were tallied at 1.9127 trillion won and 135 transactions, respectively. In terms of transaction volume, this is a 3.1-fold increase compared to the same period last year (606.3 billion won).

Buildings in the downtown area around Seoul City Hall and Gwanghwamun. Photo by Yonhap News Agency

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The largest transaction in January was the sale of the 'Children's Hall' in Neung-dong, Gwangjin District, which was sold for 330 billion won. This was followed by the sale of 'Lotte Hotel L7 Hongdae' in Donggyo-dong, Mapo District for 265 billion won, and 'Seoul Paik Hospital' in Jeo-dong, Jung District for 170 billion won.

This is the first time in three years, since 2022, that the transaction amount in January has approached 2 trillion won. Previously, transaction volumes recorded 2.2 trillion won in 2021 and 2.4688 trillion won in 2022, but plummeted to 495.2 billion won in 2023 as the impact of interest rate hikes took hold. Afterwards, the volume bounced back to 885.6 billion won in 2024 and 606.3 billion won in 2025, remaining below the 1 trillion won mark.

RSquare explained that this trend suggests a partial recovery in the commercial real estate market after a period of contraction. The RSquare Research Center stated, "January is usually a time when there is a lull in transactions," but added, "This year, the transaction volume was in the upper 1 trillion won range, showing a stronger-than-expected performance."

However, there is still uncertainty as to whether this recovery will lead to a sustained upward trend. RSquare commented, "Given that investment conditions are rapidly changing due to recent domestic and international variables, it remains to be seen whether the trading fervor will continue."

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