Seoul Retail

Asian Cities

2H 2017

 

First floor retail rents
Based on the Korea Appraisal Board (KAB) data in June 2017, 1/F rents in the top five retail areas for mid-size buildings have shown a divergent performance. Retail rents in Myeongdong and Gangnamdaero recorded steady growth from 2014 to mid 2016, but have recorded slight downward movement since 2016. Meanwhile retail rents for Hongdae-Hapjung increased due to new recreational facilities and improved infrastructure.

Average contracted rents in Myeongdong at the end of June were the highest in the city, according to KAB. Myeongdong is an extremely popular foreign tourist destination and attracts significant foot traffic, due to the co-location of apparel and cosmetics flagship stores. Retail rents in Myeongdong have steadily increased from 2013. However, the area has seen a drop in visitors from China since Q4/2016, due to the political environment between the two countries and as a result, retail rents have been negatively affected. Since the Chinese government restricted Chinese travel agencies from providing group tours to Korea on 15 March 2017, the number of Chinese tourists has declined and rents have fallen 0.4% compared to the previous quarter.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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