CBRE Korea, "Pangyo, Magok, and Seongsu to Establish Themselves as New Business Districts"

CBRE Korea is conducting a webinar titled "Emerging Office Markets to Watch" on the 29th, presenting the high growth potential and outlook of the office markets in Pangyo, Magok, and Seongsu.

[Asia Economy Reporter Tae-min Ryu] Global real estate services firm CBRE Korea presented the high growth potential and outlook of the Pangyo, Magok, and Seongsu office markets at a webinar held on the 29th under the theme of "Emerging Office Markets."

At the event, attended by about 250 landlords, tenants, and industry stakeholders, Soo-hye Choi, Director of Research at CBRE Korea, gave a presentation titled "Current Status and Outlook of Emerging Business District Markets." Following this, Sung-hyun Choi, Executive Director of Capital Markets at CBRE Korea, and Sung-jin Park, Executive Director of Leasing Advisory Services at CBRE Korea, participated in a Q&A session.

Director Choi analyzed the Pangyo, Magok, and Seongsu office markets, stating, "Pangyo, known as Korea's Silicon Valley and a high-tech innovation district, is expected to continue its growth with the planned development of the 2nd and 3rd Pangyo Techno Valleys." Regarding Magok, which is growing as an eco-friendly bio cluster, he explained that it is establishing itself as a representative emerging business district in the southwestern Seoul area, with numerous office and educational research facilities being supplied and major bio and pharmaceutical companies moving in, serving as a business hub centered on research and development (R&D) industries. As for Seongsu, successful leasing and expansion of shared offices have been observed, and it is expected to develop into a business hub led by young startups driving new trends.

During the subsequent Q&A, Executive Director Choi explained, "Pangyo is developing into a core area attracting both domestic and international investors by possessing the three key elements of location, capital, and workforce. It is expected to become a business district comparable to Yeouido, one of Seoul's three major business zones." Executive Director Park added that the Pangyo office market, mainly occupied by IT, gaming, and cultural content companies, appears to have significant potential demand considering the expansion needs of companies currently located in the 1st Pangyo Techno Valley and the intentions of companies planning to move into Pangyo.

Regarding the Magok office market, Executive Director Park noted, "Magok, dominated by corporate R&D centers, will primarily target related affiliated companies as well as pharmaceutical and bio companies. If business infrastructure development improves support services, it is expected that various companies will consider moving in, which could lead to further rent increases." Executive Director Choi also explained that Magok, expected to establish itself as a bio cluster, offers attractive investment opportunities from an office investment perspective due to the scarcity of assets preferred by investors.

Unlike Pangyo and Magok, which were developed under government leadership, Executive Director Park said about the naturally developing Seongsu office market, "The Seongsu-dong area has been designated as an IT Industry Development Promotion District, leading to steady occupancy by startups including those in high-tech industries. Development benefits from nearby Ttukseom and Seongsu District Strategic Maintenance Projects are expected to drive further growth." Executive Director Choi forecasted that Seongsu, having grown starting with retail activation such as cafe streets and equipped with an environment suited to the demands of younger generations, will develop into a young and future-oriented business district partially absorbing functions of the Gangnam business district.

CBRE Korea CEO Dong-soo Lim said, "This webinar was an opportunity to share CBRE's unique insights on emerging office markets based on differentiated data and in-depth analysis," adding, "We will continue to spare no effort to provide the best real estate solutions to our clients with abundant real estate knowledge and differentiated expertise."