Outlook 2023 South Korea

SEOUL

RENT GROWTH

RENT (KRW/SQM/YR) AND RENT GROWTH (% PER ANNUM)

FORECAST

37,000

6.0%

 Rent growth is expected reach 5% in 2022 in line with low vacancy rate and high inflation.  Rent-free periods have been reduced, leading to the rise of effective rents.  After 2023, rent growth will likely slow as new supply enters the market and tenant demand softens.

36,000

5.0%

35,000

34,000

4.0%

33,000

32,000

3.0%

31,000

2.0%

30,000

29,000

1.0%

28,000

27,000

0.0%

2020

2021

2022F 2023F 2024F 2025F 2026F

Rent (KRW/SQM/YR)

Rent Growth

Source: Cushman & Wakefield