This year, interest among property owners in small and medium-sized buildings is increasing explosively. office Different characteristics from the past are appearing in the market. investIt's attracting people's attention.

world's largest real estate networkRemax, equipped with , was held in Nonhyeon-dong, Gangnam-gu, Seoul on the 10th. erectionSeoul at the halleconomy‘Small and medium-sized building’ held jointly with the newspaper investment briefing session' to investors helpWe introduced major trends in the office market that could lead to this. According to Remax, the recent Seoul office market is characterized by ▲Determination of the value of office buildings based on profitability ▲Formation of differentiated markets by region and building ▲Collapse of the three traditional regions ▲Continuous increase in supply and slowdown in demand ▲Renter-dominant market ▲Increased building consignment management etc.

On this day teacherChoi Yoon-seok, CEO of Remax Wide Partners, said that the era in which the value of office buildings is determined by the rate of return has arrived. CEO Choi emphasized, “As expectations for market profits have largely disappeared as in the past, the level of rental income of a building compared to investment has become a key criterion for making investment decisions.” 

Another characteristic of the recent office market is that differentiated markets are being formed by region and building. In the case of the downtown area (CBD), Yeouido area (YBD), and Gangnam area (GBD), which are commonly referred to as the three major office areas in Seoul, rents and vacancy rates showed similar trends in the past. Even within the same area, depending on the condition of individual buildings TradingThere is a significant difference in prices and rents. 

At the same time, the traditional three major regions, CBD, YBD, and GBD, are collapsing. Recently, the supply of offices has increased in Pangyo and Magok, and the development of a metropolitan transportation network has expanded the office market to the entire metropolitan area, including Seoul. enlargementIt is a trend. 

While supply is steadily increasing, demand is also slowing down. While overall building supply is high, due to the economic downturn, office rental As demand decreases, the vacancy rate remains high, giving tenants an advantage. Accordingly, building owners also rent incentiveDifferentiated rental including up to 6 months rent-free marketing strategyThe need to establish is increasing. In addition, the number of cases where building management is entrusted to professional companies is increasing. 

As such, trends in the office market are changing rapidly this year. This means that as investor interest in small and medium-sized buildings increases, market competition is also intensifying. Accordingly, there is a need for building owners to invest in buildings more strategically. Choi Byeong-rok, Remax Wide Partners, was the instructor on this day. move“Unlike in the past, the era where you could make money just by holding a building is over,” he said. “There are many things that can affect the value of a building, such as the story of the building and traffic,” he said. ElementHe emphasized, “We need to look closely at these before investing.”