Seoul Major Commercial Districts See Rising Vacancy Rates...
Myeongdong Only Area with Single-Digit Vacancy Rate
Although the vacancy rates in major commercial districts in Seoul increased in the first quarter of this year, Myeongdong recorded a single-digit vacancy rate, the only one among the '6 major commercial districts' (Gangnam, Hongdae, Garosugil, Hannam-Itaewon, Cheongdam, Myeongdong), as foreign tourists increased. On the other hand, Garosugil saw the largest increase, with its vacancy rate rising by 5.0 percentage points.
According to the 'Q1 Retail Market Report' by global real estate consulting firm Cushman & Wakefield on the 3rd, the average vacancy rate of the 6 major commercial districts in the first quarter was 19.2%, up 0.6 percentage points compared to the fourth quarter of last year.
The area with the lowest vacancy rate is the Myeongdong commercial district. Myeongdong's vacancy rate was 7.6%, down 1.9 percentage points from the fourth quarter of last year and 17.4 percentage points from the first quarter of last year. The Myeongdong commercial district has maintained the lowest vacancy rate among the 6 major commercial districts for two consecutive quarters following the fourth quarter of last year.
The next lowest vacancy rate is in the Hannam-Itaewon commercial district (12.3%). However, it rose by 2.6 percentage points compared to the previous quarter. This is followed by Hongdae at 14.4%, Cheongdam at 19.1%, Gangnam at 20.7%, and Garosugil at 41.2%.
In particular, Garosugil experienced the largest increase in vacancy rate, rising by 5.0 percentage points from 36.3% in the fourth quarter of last year. Garosugil's vacancy rate increase was the largest. Once considered a hot place in Seoul, the commercial district has shrunk due to a sharp rise in rent.
Gangnam's vacancy rate decreased by 2.6 percentage points compared to the previous quarter but remains in the 20% range. The report analyzed, "According to Seoul Metro, the number of foreign subway riders in October last year increased by 118% at Hangangjin, Hannam, and Itaewon stations and by 350% at Seongsu station compared to October 2019," adding, "As the travel style of foreign tourists recently shifts from group tours to individual tours, foreign visits to the Hannam-Itaewon and Seongsu commercial districts are rapidly increasing."
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