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TitleRegional Commercial Real Estate 'Breakes Breath' After Overcoming Long-Term Stagnation… Vacancy Rates in Chungbuk and Gyeongnam Drop Significantly2026-08-21 18:44
Writer Level 10
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A slight breeze is blowing through the regional commercial real estate market, which had been in a deep slump for a long time. This is the result of the gradual depletion of remaining properties after a long period of halted new supply, coupled with favorable policy factors such as tax incentives from local governments and the relocation of administrative agencies.

Vacancies in regional areas are decreasing due to the depletion of remaining inventory and policy support.

As of the second quarter of this year, Chungbuk recorded the largest decrease in the country, falling 1.7 percentage points from 29.9 percent in the first quarter to 28.1 percent. This was followed by Gyeonggi-do at 1.0 percentage point, Gyeongnam at 0.9 percentage points, Chungnam at 0.7 percentage points, and Gwangju at 0.3 percentage points, indicating a reduction in vacancies across major regional areas.

In fact, it has been proven by figures that policy support, such as the establishment of semiconductor clusters and tax incentives, has helped, and that actual transactions have been 활성화 (activated) in local field sales networks, including Cheonan and Daegu.

Seoul experiences a temporary pause due to the new supply of large prime office spaces*

On the other hand, Seoul's vacancy rate, which had been leading the market, rose slightly by 0.3 percentage points from 5.2 percent to 5.4 percent. This is due to the impact of new supply resulting from the simultaneous completion of massive prime office buildings, totaling approximately 100,000 pyeong, centered around downtown areas such as Jongno and Euljiro.

In the case of newly constructed large office buildings, the statistically reflected vacancy rate is closer to an optical illusion because there is a time lag between completion and actual occupancy by companies. With the rate significantly below the national average vacancy rate of 9.0 percent and rental rates maintaining an upward trend, the robust market trend remains unchanged.

Real estate experts analyzed that figures for regional offices improved as inventory was depleted amidst a long-term supply drought, while Seoul is experiencing a temporary period of consolidation due to the supply of large-scale new buildings.

In addition, it was pointed out that the key factor for the future market is whether the reduction in vacancy rates in regional areas will not be limited to mere numerical improvements but will lead to fundamental improvements such as attracting businesses and revitalizing transactions.

- Apply for the free Remax startup seminar on 8/27
https://remaxkorea.co.kr/seminar
Real estate transaction request (via comments or the link below)
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