According to the recently released Q3 commercial real estate rental trends by the Korea Real Estate Board, Yongsan Station recorded 110.9 as of Q3 2025, a 10.91-to-3Tp increase from Q2 2024 (index base point = 100), demonstrating the highest increase nationwide. Yongsan Station has emerged as a new business hub in recent years, with the relocation of headquarters of major corporations and global companies, including Hive, Amorepacific, and LS Group. Furthermore, large-scale projects, such as the re-promotion of the International Business District and the mixed-use development of the maintenance depot site, are rapidly driving up commercial land values.
The Yongsan Station area, in particular, is a mixed area of aging housing and commercial facilities, with limited new supply. Amidst this supply shortage, rental demand has concentrated, leading to a rapid increase in rental rates in a short period of time.
Gangnam, Gwanghwamun, and Yeouido remain strong, with tourism sectors showing clear signs of recovery.
Existing major business districts, such as Gangnam-daero (108.2), Gwanghwamun (107.2), Teheran-ro (106.3), and Yeouido (106.0), also maintained upward trends. Gangnam boasts solid, fixed demand centered on finance and IT, while Gwanghwamun and Yeouido boast steady office demand centered on public institutions and the financial sector. The fact that these areas remain central to Seoul's commercial districts reaffirms the strength of Gangnam, Gwanghwamun, and Yeouido.
This survey also highlights the recovery of tourist destinations. Major tourist destinations such as Myeongdong (104.8), Namdaemun (104.4), and Hongdae/Hapjeong (104.0) all significantly exceeded the benchmark (100). This is attributed to the resumption of visa-free entry into China, the spread of K-pop concerts and Korean Wave content, and the increase in foreign visitors, revitalizing these areas.
Stagnation outside Seoul… Polarization of commercial real estate worsens.
Outside of Seoul, the increase was limited. The Bundang Station area in Gyeonggi Province saw a mere 4.3-point increase, reaching 104.3, while some local commercial districts stagnated or declined near the baseline (100). As investment and rental demand concentrate in central Seoul, the gap in commercial real estate prices between regions is widening.
The rise in Yongsan Station rents significantly exceeds typical rent increases, raising concerns about short-term, rapid increases. The increase of over 101 tbs/3t in just over a year since the index's baseline is considered exceptional. These statistics simultaneously demonstrate three trends: Yongsan's rapid growth, the stability of central Seoul, and stagnation in non-Seoul areas. This highlights the need for action to restore balance in the commercial real estate market and reduce regional disparities.
