Seoul office transactions hit record in 2020 despite pandemic

2021. 1. 22. 16:44
글자크기 설정 파란원을 좌우로 움직이시면 글자크기가 변경 됩니다.

이 글자크기로 변경됩니다.

(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.

An aerial view of Pine Avenue A, an office building that Shinhan Card uses as its headquarters. Shinhan Card acquired the building in the third quarter of 2020 in a deal that recorded the highest unit price of office buildings in history. (Shinhan Card)

The total volume of office investments in major districts of the Greater Seoul area hit yet another record in 2020 despite the pandemic, as high demand for offices in prime locations led the bullish market, data showed Friday.

The full-year transaction total of offices last year in Seoul and the neighboring city of Bundang, Gyeonggi Province, came to 13.4 trillion won ($12.1 billion), up 9 percent from the previous all-time high in 2019, according to data suggested by commercial real estate services firm Cushman & Wakefield Korea.

The boom has been driven by investor appetite for relatively stable real estate assets, against the backdrop of the COVID-19 crisis and ample liquidity, wrote Philip Jin, head of research at Cushman & Wakefield Korea.

“The blow to the real economy from COVID-19 has raised concerns over the profitability of assets more closely related to the consumer economy, such as hyper markets, hotels and cinemas, in turn intensifying competition for core office assets offering relatively stable profits,” Jin wrote.

As the first wave of COVID-19 ebbed away in the first half of 2020, office investment activity picked up speed in the Greater Seoul area. Transactions in the second half of 2020 took up 65 percent of the total, the data showed.

Competition to buy prime office assets in Seoul’s major business districts began to intensify as foreign investors searched for stable income and domestic investors faced restrictions in outbound investments due to the pandemic.

Pine Avenue A, a prime office building in Seoul’s central business district, set a new record in unit price at 7.9 million won per square meter. The building, owned by Azerbaijani sovereign wealth fund SOFAZ, was sold to Shinhan Card for 521.5 billion won in the third quarter of 2020.

Parc One Tower 2 in Yeouido was the most expensive building in 2020 as NH Investment & Securities purchased it for 1 trillion won in the fourth quarter.

Other major prime office deals include Mastern Investment Management’s acquisition of D-Tower Donuimun for 656.3 billion won, Pinetree Asset Management‘s 939.9 billion-won purchase of SG Tower and Igis Asset Management’s acquisition of Namsan Square building for 500 billion won.

The competition for Seoul’s commercial real estate assets is likely to remain heated in 2021. According to a survey by real estate service firm CBRE, Seoul was ranked the third most preferred city for cross-border investment for Asia-Pacific property investors in 2021, following Tokyo and Singapore. Seoul went up by three notches from 2020. The same city did not make it to the top 10 in 2019.

By Son Ji-hyoung (

<ⓒKoreaHerald(무단전재 및 재배포 금지>

Copyright © 코리아헤럴드. 무단전재 및 재배포 금지.

이 기사에 대해 어떻게 생각하시나요?