Outlook 2023 South Korea

KEY MESSAGES BRISBANE SEOUL

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 After the extremely low supply in 2022, several projects are scheduled in 2023, but pre leasing activity is expected to contain the impact of the new supply on vacancy.  Several large-scale projects are taking shape, with completion expected after 2025.

 Tenant demand remained strong in 2022, and the vacancy rate recorded was unprecedentedly low.  Limited supply has not kept pace with demand, resulting in strong competition between tenants.  Due to uncertainties in the global economy, the growth of IT companies and start-ups

 Unprecedentedly low vacancy rate and high inflation have driven rapid rent growth.  Rents are expected to stabilize after 2023 as new supply enters the market.

 The vacancy rate, which has decreased at a rapid pace in 2022, is expected to rise gradually due to the looming global economic slowdown.

(which have led the recent decline in vacancy rates) is expected to slow down, therefore office demand is forecast to decrease.