Office rental prices South Korea Q2 2024, by province

In the second quarter of 2024, the rental prices of office buildings in Seoul amounted to around 23,500 South Korean won per square meter, the highest among all provinces in South Korea. Gyeonggi and Incheon followed with about 12,700 and 8,400 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 multipurpose nature, these so-called officetels have seen lower demand in past months due to higher interest rates compared to a few years ago and affordability concerns. Indeed, the sales price index of officetels saw a continuous decline into 2024.

Options beyond traditional housing in South Korea

More than 300,000 units in a housing survey were considered to be non-residential buildings, such as officetels, in South Korea in 2023. 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.