Outlook 2023 South Korea

SEOUL

DEMAND & VACANCY

NET ABSORPTION (SQM) AND VACANCY RATE (%)

FORECAST

700,000

9.0%

 Tenant demand remained strong in 2022, driven by IT companies and start-ups, driven vacancy down to unprecedented lows.  Net absorption is forecast to slow in 2023 due to uncertainties in the global economy.  As new supply enters the market,, vacancy is expected to increase gradually.

600,000

8.0%

500,000

7.0%

400,000

6.0%

300,000

5.0%

200,000

4.0%

100,000

3.0%

-

2.0%

-100,000

1.0%

-200,000

-300,000

0.0%

2020

2021

2022F 2023F 2024F 2025F 2026F Net Absorption Vacancy Rate

Source: Cushman & Wakefield