Seongsu-dong posts the lowest vacancy rate, Hannam gets a makeover... Reshaping of Seoul’s retail districts accelerates [fn Market Watch]

[Financial News]  Seoul’s prime retail districts are showing signs of recovery, buoyed by foreign tourists and an increase in store openings by global brands. Seongsu-dong maintained the lowest vacancy rate among the major districts, while Hannam and Itaewon are undergoing a reshaping of their retail areas as new stores open and existing stores are reorganized. Despite weak domestic demand, competition among brands to bring out the distinctive character of each district is becoming more active.
According to Cushman & Wakefield Korea’s “Seoul Retail MarketBeat, Q3 2026,” on the 9th, the average vacancy rate across Seoul’s six major street retail districts was 7.1%, down 1.4 percentage points from the previous quarter.
Seongsu-dong recorded the lowest vacancy rate among the six major districts. Inflows of foreign tourists and openings by new brands have continued, while the expansion of large pharmacies into the area is also on the rise.
New stores are opening in Hannam and Itaewon at the same time as brands are being refreshed. Vacancy rates edged up as some stores closed, but Cushman & Wakefield analyzed this as a temporary phase of restructuring.
In Myeong-dong, tenant demand is so concentrated that it is difficult to find vacant space. Vacancy rates have improved in Gangnam, with large flagship stores opening, and in Cheongdam, as global high-end brands move in. Hongdae has also seen online brands actively expand into physical retail.
Cushman is focused on a trend in the commercial real estate market in which the competitiveness of prime retail districts is increasingly differentiated by their brand mix and the characteristics of their customer base, rather than by foot traffic alone. In particular, strong demand from brands seeking space in Seongsu-dong and the reshuffling of brands in Hannam are seen as distinct forms of change in the retail landscape.
Yoon Hwa-seop, an executive director at Cushman & Wakefield Korea, said, “Foreign demand and large-scale openings by global brands came together, driving a clear recovery centered on prime retail districts,” and analyzed that “a selective approach tailored to location and target customers will be key to leasing strategies going forward.” A commercial real estate industry official added, “If Seongsu-dong is a district that quickly absorbs demand from new brands seeking space, Hannam is in a phase of restructuring, with existing brands being replaced as new stores open. Given Hannam’s distinctive brand identity and customer base, the mix of brands that move in will determine the district’s competitiveness going forward.” 


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