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Business Briefings
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Asia Pacific
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SEOUL: THE MOST TENANT-FRIENDLY OFFICE MARKET IN ASIA PACIFIC
Robust business growth on the back of a resurgent economy, combined with historically low vacancies, has pushed office development in downtown Seoul to a blistering pace. Pockets of oversupply have already emerged, causing Grade A vacancies to steadily creep up since the fourth quarter of 2009. Although many developers have attempted to defer completion of their projects, over 20 buildings are either under construction or in government approval stage, which may put them in a difficult position to delay their projects more than few years than originally planned. Cushman & Wakefield expects such rapid ramp-up to inevitably translate into sustained increases in vacancies and steep declines in effective rents. The proliferation of attractive options could very well be good news for occupiers, and our analysis reveals some variations by district.
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