Vacancy rates in major commercial districts in Seoul improved in the third quarter due to a surge in foreign tourists

Due to the increased inflow of foreign tourists, the vacancy rate in major commercial districts in Seoul improved compared to the previous quarter in the third quarter of this year.

According to the third quarter Seoul retail market report released by Cushman & Wakefield Korea, a global real estate service company, on the 9th, the average vacancy rate in Seoul's six major street commercial districts was 7.1%, down 1.4 percentage points compared to the previous quarter.

It was analyzed that the explosive influx of foreign tourists and the opening of large flagship stores of global brands led to the recovery of the entire commercial district, with the number of tourists visiting Korea expected to exceed 20 million for the first time this year.

Cushman & Wakefield reported that as Myeong-dong continues to be saturated with virtually no vacancies, with a vacancy rate of 3.9%, new demand is being absorbed in the form of replacing existing stores.

Gangnam (8.5%) lowered the vacancy rate by 4.3% compared to the previous quarter as large flagship stores opened one after another mainly on the main street, and Cheongdam (9.4%), where global high-end brands are concentrated, also reduced the vacancy rate to single digits.

Seongsu (3.7%) recorded the lowest vacancy rate among the six major commercial districts. As the inflow of foreign tourists continues, new stores are opening, and the trend of opening large pharmacies that started in Myeong-dong is expanding to Seongsu.

In Hongdae (8.7%), the vacancy rate decreased by 1.7% due to the aggressive opening of offline stores by online-based brands.

In Hannam and Itaewon (8.5%), the vacancy rate increased by 1.5 percentage points compared to the previous quarter due to a temporary factor of some stores closing during the brand renewal and reorganization process.

Hwa-seop Yoon, managing director of Cushman & Wakefield Korea's retail leasing group, said, "In the third quarter, the Seoul retail market showed a clear recovery centered on key commercial districts, with foreign demand and large-scale store openings by global brands," and added, "A selective approach tailored to location and target customers will be the core of our future leasing strategy."