Shortage of Offices in Kangnam Area to Be AlleviatedThe chronic shortage of office space in the Kangnam area of Southern Seoul is expected to improve by the second half of this year. This is because the supply of new offices is expected to greatly increase while the demand for new offices by venture companies is expected to decrease.
According to recent research done by the real estate information service company Budongsan114, 20 new office buildings, with a total of 627,000 square meters of new office space, will be completed by the end of this year. New tenants are expected to begin moving into the buildings in April and all the buildings are expected to be fully occupied by the end of the year.
Nine of the buildings with a combined office space of 330,000 square meters are being built in the congested Kangnam area.
LG Twintel, with a total area of 120,460 square meters will open in Samsong-Dong in Southern Seoul at the end of this year while the United Steel Manufacturers' building with a capacity of 26,070 square meters and the Cityenne office building with a total office space of 16,170 square meters,both in the southern part of Seoul, will open next month.
In June 3 buildings will be opening including the Chunji building (24090 square meters), also in the southern area, the Maison Livre (43,230 square meters)in Yoksam dong and the Dokok building (156,750 square meters) in Taechi dong are both expected to open in July and December respectively. These two buildings will provide such a large amount of office space that office rents in the Kangnam area are expected to fall after their opening.
Kim Byung-Ook,the research committee member of the Budongsan114, predicted that,"Considering the increases in the supply of office space and the sudden rise of rents in the Southern area will be alleviated beginning in the fourth quater of this year.".
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