Investment activity has become increasingly concentrated in prime assets within the core business districts, reinforcing the ongoing flight-to-quality trend. While financing conditions remain selective, pricing for high-quality assets continues to demonstrate strong downside protection, reflecting investor confidence in the market’s long-term fundamentals.
Beyond the traditional core markets, investor interest has expanded into function-driven office clusters such as Seongsu, Magok, Sangam DMC and Pangyo, highlighting a structural reallocation of office demand.
Looking ahead, the market is expected to transition from recovery to stability in 2026, with performance increasingly driven by asset selection rather than transaction volume.
Key Takeaways
- The market entered 2026 following a record KRW 22.9 trillion transaction year in 2025.
- Sidelined capital returned amid stabilizing interest rates and improving financing conditions.
- Investment reconcentrated in prime CBD and GBD assets, reinforcing the flight-to-quality trend.
- Prime assets continue to demonstrate strong pricing resilience and downside protection.
- Growing investor interest in Seongsu, Magok, Sangam DMC, and Pangyo as function-driven office clusters.
- Share deals have become the standard transaction structure for prime office assets.
- End-user and owner-occupier demand supported transactions for assets with vacancy risk.
- 2026 outlook: the market is shifting from recovery to stability, with asset selection as the key performance driver.
