Pangyo Tech One Tower's 2 Trillion Won Sale Drives Growth as Funds Flow to Prime Assets

This year's third-quarter nationwide commercial and office building market transaction value recorded a double-digit growth rate, marking a consecutive increase for two quarters. Although transaction volume decreased compared to the previous quarter, the transaction value rose due to the sale of Pangyo Tech One Tower in Seongnam City for approximately 2 trillion Korean won.

On the 4th, Real Estate Planet, a proptech company specializing in commercial real estate, analyzed the third-quarter nationwide commercial and office building transaction market based on actual transaction price data from the Ministry of Land, Infrastructure and Transport. The results showed that the transaction value amounted to 11.9809 trillion Korean won, a 14.9% increase compared to the second quarter's 10.4259 trillion Korean won. Notably, September's transaction value reached 5.4205 trillion Korean won, marking the highest monthly figure since June 2022, when it was 5.4858 trillion Korean won. In contrast, the number of sales transactions decreased by 3.5% to 3,456 cases compared to the second quarter's 3,583 cases.

When examining the 17 metropolitan cities and provinces nationwide, Seoul accounted for 6.3753 trillion Korean won and Gyeonggi Province for 3.3823 trillion Korean won, with these two regions together making up over 80% of the nationwide transaction value. In terms of transaction volume, Gyeonggi Province recorded 691 cases and Seoul 587 cases, with these two regions accounting for 37% of the nationwide transaction volume.

By price range, buildings priced under 1 billion Korean won accounted for the highest proportion at 60.5% (2,092 cases). This was followed by buildings priced between 1 billion and under 5 billion Korean won at 29.8% (1,030 cases), between 5 billion and under 10 billion Korean won at 4.9% (171 cases), between 10 billion and under 30 billion Korean won at 3.7% (128 cases), and 30 billion Korean won or more at 1% (35 cases). The transaction volume for buildings priced between 10 billion and under 30 billion Korean won increased by 32% compared to the previous quarter's 97 cases, while the volume for buildings priced between 5 billion and under 10 billion Korean won decreased by 9%.

The highest-priced transaction in the third quarter was Pangyo Tech One Tower in Bundang-gu, Seongnam City, Gyeonggi Province, which was traded for 1.9820 trillion Korean won in September. This was followed by the Ferum Tower in Jung-gu, Seoul (645.1 billion Korean won) and NC Tower in Gangnam-gu, Seoul (443.5 billion Korean won), both traded in July.

Jung Soo-min, the representative of Real Estate Planet, stated, "There is a consistent trend of funds flowing into assets with stable lease structures and competitive location advantages."

Commercial Building Transactions Drop, Value Surges