Office rental prices South Korea Q3 2023, by province

In the third quarter of 2023, the rental prices of office buildings in Seoul amounted to around 22,900 South Korean won per square meter, the highest among all provinces in South Korea. Gyeonggi and Incheon followed with about 12,500 and 8,400 South Korean won per square meter, respectively.

Lower demand for offices in South Korea

Some office buildings offer both commercial and residential uses in South Korea. Despite their multi-purpose nature, these so-called officetels have seen lower demand in past months due to higher interest rates compared to 2022 and affordability concerns. Indeed, the sales price index of officetels saw a continuous decline from late 2022 to mid-2023.

Options beyond traditional housing in South Korea

More than 300,000 units in the housing survey were considered non-residential buildings, such as officetels, in South Korea in 2021. These units are known to be more affordable than traditional housing options but are short in space and usually designed for a maximum of one or two people. Officetels offer a practical solution for long commutes or allow a more independent lifestyle, often sought by young adults used to multi-generational communal living commonly practiced in South Korea.