CBRE "Commercial Real Estate Investment in the First Half Reaches 15 Trillion Won...50% Increase from Last Year"

[Financial News] It was found that the investment volume in the domestic commercial real estate market in the second quarter of this year increased by more than 50% compared to last year.
On the 28th, the global comprehensive real estate service company CBRE Korea announced in the '2025 Second Quarter Domestic Commercial Real Estate Market Report' that the investment volume for the second quarter reached approximately 7.1143 trillion won, an increase of about 53% compared to the same period last year. This figure surpassed the 7 trillion won mark for the second consecutive quarter following the first quarter. The cumulative investment amount for the first half reached approximately 15 trillion won, exceeding 70% of last year's annual investment volume.
About 85% of the total investment this quarter, approximately 6.0117 trillion won, was in office assets. Among these, there were 11 transactions exceeding 100 billion won, amounting to about 5.5 trillion won, conducted in urban and Gangnam areas. Major transactions included SI Tower, KDB Life Tower, Crescendo, and BNK Digital Tower, with notable cases of strategic investors (SI) such as CJ Group, Hyundai Motor, and Bithumb purchasing office buildings.
The average vacancy rate in the Seoul A-grade office market was 2.7%, the same level as the previous quarter, while the Gangnam area (1.7%) and Yeouido area (2.8%) fell by 0.4%p and 0.2%p respectively, maintaining stability. On the other hand, in the urban area, prime assets partially offset the vacancy rise of other assets.
The retail market continued its recovery trend, driven by the recovery of consumer sentiment index and the increase in demand from foreign tourists. The consumer sentiment index in June recorded 109, the highest since 2021, and the number of foreign visitors in the first half reached 7.2 million, an increase of 15% compared to the same period last year. Accordingly, major brands such as Olive Young, Alo, and Lululemon expanded their stores in key commercial districts such as Gangnam, Dosan-daero, and Seongsu, and the overall recovery trend of commercial districts was observed with a decrease in vacancy rates and an increase in rents in areas such as Myeongdong, Hongdae, and Hannam-dong. In particular, retail demand within large office arcades such as Magok One Grove, where over 90% of lease contracts have been completed, is rapidly stabilizing.
This quarter, the transaction volume of logistics assets was 296.7 billion won, showing a temporary adjustment with an 84% decrease compared to the previous quarter. The hotel market continues to observe strong investment demand due to the recovery of foreign tourist demand, supply restrictions, and rising development costs. In the second quarter, Goldman Sachs made its first hotel investment in Korea by acquiring the Mercure Ambassador Hongdae Hotel for 262 billion won, and Shinhan Seobu T&D REITs also continued transactions by purchasing Shilla Stay Mapo for 143 billion won. With the recovery of tourism demand and limited new supply, investment demand for hotel assets is expected to maintain a solid trend for the time being.
Choi Su-hye, head of research at CBRE Korea, said, "In the second quarter, the commercial real estate market further solidified its recovery trend as strategic investors' real demand and selective approach of foreign capital appeared simultaneously," and predicted, "In the second half, interest rate stability is expected due to the easing stance of monetary policy, but yield differences will appear significantly depending on asset types and investor preferences."

ming@fnnews.com Jeon Min-gyeong Reporter