'Seoul Office' August transaction value at 718 billion won... Highest per-3.3-square-meter price of the year [fn Market Watch]

[Financial News] Seoul office transaction value totaled 718 billion won last August, down 70.1% from the previous month. The average transaction price per 3.3 square meters was 51.12 million won, up 78.3% and the highest level recorded this year. The increase came as high-priced transactions involving small and medium-sized assets continued despite the decline in overall transaction volume.
According to Realytics, a commercial real estate AI solutions provider, on the 1st, Seoul recorded seven office transactions worth 718 billion won in August. While transaction value fell 70.1% from the previous month, it surged 737% from the same period last year. Cumulative transaction value through August reached 7.9864 trillion won, up 44.3% from the same period a year earlier.
In July, large transactions such as Semicolon Mullae, valued at 614.8 billion won, and Gangnam 358 Tower, valued at 445 billion won, drove the market. In August, relatively smaller assets, including KORNER 136 at 252 billion won and Shinhan Expace at 128 billion won, accounted for the major transactions.
Hongdae KORNER 136 traded for 252 billion won, or approximately 62.75 million won per 3.3 square meters, underscoring the high price level in the Hongdae area. By contrast, Myeong-dong's Shinhan Expace traded for 128 billion won, about 15% below its initial appraised value.
Realytics analyzed, "The August Seoul office market was characterized by a decline in transaction value due to the absence of mega-sized deals, while selective transactions centered on small and medium-sized assets and high per-3.3-square-meter prices continued," and added, "In the second half of the year, transactions centered on large assets with stable tenancy and strong cash flow are likely to expand due to the impact of rising interest rates. With many large offices currently scheduled for transaction, whether these deals are completed will determine the market's direction going forward." 
[email protected] Kang Gu-gwi Reporter