For institutional fund strategies, Jongno / Gwanghwamun (CBD) carries the strongest investor flag in Seoul, with prime yields around 4%.

  • Trophy submarket (Jongno / Gwanghwamun (CBD)) carries the strongest investor flag.
  • Prime yield: 4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Seoul office fund strategy and flag

For institutional fund strategies, Jongno / Gwanghwamun (CBD) carries the strongest investor flag in Seoul, with prime yields around 4%.

TL;DR

  • Trophy submarket (Jongno / Gwanghwamun (CBD)) carries the strongest investor flag.
  • Prime yield: 4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Seoul, that's Jongno / Gwanghwamun (CBD) and assets like Lotte World Tower, Parc1 Tower 1.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

citySeoul
countrySouth Korea
regionAPAC
classARentLocal142000 KRW/sqft/yr
classARentUsd$102/sqft/yr
vacancy5.2%
typicalLeaseYears5
typicalRentFreeMonths6
submarkets6
primeYieldPct4%
primeYield4%
trophyAnchorJongno / Gwanghwamun (CBD)

Frequently asked questions

Where do core funds buy in Seoul?
Trophy submarket — Jongno / Gwanghwamun (CBD) — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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