The national market for knowledge industry centers saw a significant contraction in the second quarter. Transaction volume dropped by over 30% compared to the previous quarter, and the transaction amount fell back to the 200 billion won range for the first time since the fourth quarter of 2022.
According to a report released on September 8 by Real Estate Planet, the transaction volume for knowledge industry centers nationwide was recorded at 560 cases. This represents a 34.7% decrease from 858 cases in the previous quarter and a 33.1% decline from 837 cases during the same period last year.
The total transaction amount was 217.9 billion won, down 40.9% from 369 billion won in the previous quarter. Compared to 363.4 billion won in the same period last year, this marks a 40.0% decrease. The average price per 3.3 square meters was 15.22 million won, reflecting a 3.7% drop from the previous quarter and a 3.2% decline from the same period last year.
Both the metropolitan and non-metropolitan areas experienced a decrease in transactions. In the second quarter, the transaction volume for knowledge industry centers in the metropolitan area was 506 cases, with a transaction amount of 200.2 billion won, representing decreases of 31.9% and 34.1%, respectively, from the previous quarter. In non-metropolitan areas, transaction volume fell to 54 cases, a 53.0% drop, while the transaction amount plummeted to 17.7 billion won, a 72.9% decrease.
In Seoul, the transaction volume was 125 cases, with a transaction amount of 74.3 billion won, down 39.3% and 45.8%, respectively, from the previous quarter. Among the districts, Geumcheon had the highest transaction volume with 39 cases, followed by Gangseo with 23 cases, and Guro and Yeongdeungpo each with 20 cases, while Songpa had 17 cases.
In terms of transaction amounts, Yeongdeungpo led with 15.9 billion won, followed closely by Geumcheon with 15.7 billion won, Gangseo with 15.5 billion won, Guro with 13.4 billion won, and Songpa with 10.3 billion won. The average price per 3.3 square meters in Seoul was 24.03 million won, down 4.0% from the previous quarter.
In Gyeonggi Province, the transaction volume for knowledge industry centers was 349 cases, with a transaction amount of 117.4 billion won, down 28.6% and 23.5%, respectively, from the previous quarter. Seongnam had the highest transaction volume with 39 cases, followed by Hanam with 36 cases, Yangju with 31 cases, Anyang with 30 cases, and Hwaseong with 29 cases.
As concerns over high interest rates and oversupply persist, the knowledge industry center market is shifting towards areas in the metropolitan region where actual user demand remains, rather than investment demand.
Jung Soo-min, CEO of Real Estate Planet, stated, “In the second quarter, the knowledge industry center transactions significantly contracted nationwide, with over 90% of the total transactions occurring in the metropolitan area. Even amid market stagnation, demand is increasingly concentrated in the metropolitan region.”
* This article has been translated by AI.
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