The number of commercial properties for sale in the Seoul metropolitan area in the first quarter was found to be more than three times higher than in other regions.
On the 8th, an analysis of the number of commercial properties listed for sale nationwide through Real Estate R114's commercial real estate solution RCS showed that the number of listings in the first quarter of this year was slightly higher at 119,198 compared to 117,309 in the same period last year.
By region, the Seoul metropolitan area had 92,323 listings, while other regions had 26,875, reflecting the concentration of infrastructure and the overwhelmingly larger number of commercial properties in the metropolitan area.
The number of commercial properties for sale by type in the first quarter of this year tended to correspond to the absolute number of commercial properties. Neighborhood stores were the most numerous at 43,955, followed by other stores with unspecified types at 31,055, complex stores within residential complexes at 19,376, office stores at 9,870, mixed-use residential-commercial stores at 8,323, knowledge industry center stores at 4,558, and complex shopping malls at 2,061.
While the number of commercial properties for sale decreased in most categories compared to the first quarter of 2022, the number of listings in knowledge industry center stores increased significantly compared to the same period last year. This is believed to be due to most knowledge industry centers being located outside central commercial districts near business zones, and the tenant demand being limited to workers within the knowledge industry centers, making it difficult to secure tenants.
Going forward, the number of commercial properties for sale is expected to vary by region and type. In areas where commercial districts are gradually recovering and rental yields are improving, the number of listings is expected to decrease.
On the other hand, in regions such as Sejong and Daejeon, where net operating income (income after deducting operating expenses from rental income, advertising, and other revenues) has declined or where there are concerns about oversupply of commercial properties, there is potential for an increase in listings.
A representative from Real Estate R114 stated, “By type, there is a high possibility that listings will increase in knowledge industry center stores, which have relatively limited demand, and newly built neighborhood stores within housing development districts.”
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