• Korea’s economic recession caused a sharp fall in office demand over Q1/2009
• Vacancy for prime office buildings in Seoul rose from 1.0 per cent in Q4/2008 to 2.2 per cent in Q1/2009
• Average rents continued to rise, although the rate of increase slowed to 4.9 per cent compared with a year earlier, down from an 8 year high of 7.7 per cent in Q4/2008
• Sales activity over Q1/2009 provided confirmation of the fall in prices seen toward the end of last year,with transaction prices down by up to 30 per cent compared with the peak in Q3/2008
• Weak economic conditions will mean continuing declines in demand for office space through 2009. Resulting increases in vacancy will bring an end to current rent increases, but a sharp decline in rents is not expected

CONTACT INFORMATION
JoAnn Hong
+822 2124 4182
jhong@savills.co.kr

Simon Smith
+852 2842 4573
ssmith@savills.com.hk