• Despite a weakening economic environment, Seoul's prime office market continued to perform strongly into the third quarter of 2008.
• Although deteriorating economic conditions may take the shine off recent performance, Seoul does not face the bleak outlook currently confronting other major Asian prime office markets.
• Two new prime buildings were completed during the quarter, Kumho Asiana Main Tower in the CBD and Samsung Electronics' new headquarters in Gangnam. Both buildings are intended for owner occupation.
• Tight market conditions meant there were few major new leasing transactions over the quarter.
• The average Seoul prime office vacancy fell to 0.3 per cent in September 2008. Prime offi ce buildings in Yeouido recorded full occupancy, while vacancy rates in the CBD and Gangnam fell to 0.2 per cent and 0.6 per cent respectively.
• The rate of rental increase continues to rise in Yeouido and Gangnam, reaching 8.9 per cent and 8.0 per cent respectively on an annual basis. The annual rate of increase in the CBD was 5.4 per cent.
• The sales and investment market remained active during the first two months of the quarter, but dried up following the worsening of the US credit market crisis in mid-September

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

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