Q2 Industrial Knowledge Center Transactions Down 35%... Fifth Consecutive Quarterly Decline [Real Estate AtoZ]

Transaction Value of Industrial Knowledge Centers Down 38.7% from Previous Quarter
Sharp Decline in Transaction Volume and Value in the Seoul Metropolitan Area

Both the transaction volume and value of industrial knowledge centers declined compared to the previous quarter and the same period last year. Transaction volume has fallen for five consecutive quarters, with the decline more pronounced in the Seoul metropolitan area.

A view of a knowledge industry center in Goyang City, Gyeonggi Province. Photo by Jinju Han

According to a second-quarter 2025 analysis of the nationwide industrial knowledge center sales market by Real Estate Planet, a commercial real estate proptech company, the transaction volume in the second quarter was 546 cases, down 35.2% from the previous quarter (842 cases). This also represents a 44.7% decrease compared to the same period last year (988 cases). The total transaction value was 227.1 billion won, marking a decrease of 38.7% from the previous quarter (370.2 billion won) and 46.5% from the same period last year (424.2 billion won).

The survey covered 1,367 industrial knowledge centers nationwide as of the end of June, with 1,118 centers (81.8%) located in the Seoul metropolitan area and 249 centers (18.2%) in non-metropolitan regions.

The average price per exclusive area for industrial knowledge centers nationwide in the second quarter was 15.86 million won, a 0.6% increase from the previous quarter (15.76 million won). However, this represents a 1.5% decrease compared to the same period last year (16.10 million won).

The decline in transaction volume and value was sharper in the Seoul metropolitan area. In the second quarter, 480 transactions occurred in the metropolitan area, accounting for 87.9% of the nationwide total, with a transaction value of 208.0 billion won, or 91.6% of the total. Compared to the previous quarter (754 cases, 341.9 billion won), transaction volume and value fell by 36.3% and 39.2%, respectively. Compared to the same period last year (898 cases, 393.3 billion won), they dropped by 46.5% and 47.1%, respectively.

Transaction volume and value also declined in non-metropolitan areas. The number of transactions fell by 25.0% from 88 in the first quarter to 66, while transaction value decreased by 32.5% from 28.3 billion won to 19.1 billion won. Compared to the second quarter of last year (90 cases, 30.9 billion won), transaction volume and value dropped by 26.7% and 38.2%, respectively.

The price per exclusive area in the second quarter increased in both the metropolitan and non-metropolitan markets. In the metropolitan area, the average price was 16.42 million won, up 0.6% from the previous quarter (16.32 million won). In non-metropolitan areas, it rose by 6.9% from 11.02 million won to 11.78 million won.

In Seoul, the transaction volume for industrial knowledge centers in the second quarter was 89 cases, with a transaction value of 64.9 billion won, representing decreases of 45.4% and 51.8%, respectively, compared to the previous quarter (163 cases, 134.8 billion won). Compared to the same period last year (219 cases, 160.0 billion won), these figures represent declines of 59.4% each.

By district, Geumcheon-gu recorded the highest number of transactions (53 cases), followed by Yeongdeungpo-gu (10 cases), Songpa-gu (9 cases), Guro-gu (8 cases), and Seongdong-gu (7 cases). In terms of transaction value, Geumcheon-gu led with 37.2 billion won, followed by Songpa-gu (7.7 billion won), Yeongdeungpo-gu (6.9 billion won), Seongdong-gu (6.8 billion won), and Guro-gu (5.3 billion won).

The average price per exclusive area for industrial knowledge centers in Seoul in the second quarter was 23.32 million won, a 16.0% decrease from the previous quarter (27.77 million won). Among districts, Seongdong-gu had the highest price per pyeong at 37.91 million won, followed by Songpa-gu (32.63 million won), Yeongdeungpo-gu (24.62 million won), Geumcheon-gu (20.91 million won), and Gangseo-gu (20.58 million won).

The industrial knowledge center market in Gyeonggi Province also experienced a downturn. The transaction volume in the second quarter of this year was 346 cases, down 34.2% from the first quarter (526 cases) and 42.7% from the same period last year (604 cases). The transaction value was 131.3 billion won, decreasing by 30.2% from the previous quarter (188.0 billion won) and 37.6% from the same period last year (210.6 billion won).

By city and county, Anyang had the highest number of transactions (46 cases), followed by Hanam (44 cases), Seongnam (35 cases), and Hwaseong and Namyangju (33 cases each). In terms of transaction value, Hanam ranked first with 22.7 billion won, followed by Anyang (20.7 billion won), Namyangju (13.8 billion won), Seongnam (13.4 billion won), and Yongin (9.3 billion won).

The average price per exclusive area for industrial knowledge centers in Gyeonggi Province in the second quarter was 15.63 million won, below the metropolitan area average (16.42 million won), but up 15.9% from the previous quarter (13.49 million won). Namyangju had the highest price per pyeong at 28.13 million won, followed by Hanam (25.65 million won), Guri (19.51 million won), Anyang (15.77 million won), and Yongin (14.46 million won).

Jung Sumin, CEO of Real Estate Planet, commented, "In the second quarter of this year, the nationwide industrial knowledge center market saw a significant drop in both transaction volume and value compared to the previous quarter, with a particularly sharp contraction in the Seoul metropolitan area, including Seoul itself. This is the result of an oversupply leading to an imbalance between supply and demand, coupled with reduced investment demand due to the economic downturn. As a rebound is unlikely in the short term, it will be important to monitor transaction trends in light of potential interest rate cuts and policy changes going forward."