Seoul office rents top 100,000 won per pyeong, fueling corporate headquarters buying; Deokeunji offers Seoul-level access at a fraction of the cost
Amid growing corporate appetite for owner-occupied office space, Deokeunji in Goyang, Gyeonggi Province — well connected to Seoul yet significantly cheaper — is drawing attention as a cost-effective alternative.
Office purchases made for headquarters use in the first quarter of this year totaled roughly 1.2 trillion won, accounting for 40.5 percent of all office transactions, according to the real estate industry. That pace tracks closely with last year's record 5.58 trillion won in corporate headquarters acquisitions.
A sharp rise in rents across Seoul's major business districts is widely cited as the main driver of the headquarters-buying trend. Seoul-wide office rents rose 2.6 percent quarter-on-quarter in the most recent period, while maintenance fees climbed 1.6 percent. By submarket, the Gangnam Business District posted the highest rent at 117,800 won per pyeong, followed by the Central Business District at 116,700 won and the Yeouido Business District at 99,400 won. For a 50-pyeong office, that translates to a monthly rent burden of roughly 5 million to 6 million won.
Against that backdrop, Deokeunji is being reassessed as a value-for-money alternative business district. Situated adjacent to major Seoul office corridors — Sangam, Yeouido and Magok — it is effectively considered part of the Seoul metropolitan living zone. Office rents in Deokeunji run around 27,000 won per pyeong, less than half the rate in Seoul's prime business districts.
The cost savings from owning rather than leasing are particularly striking. A completed 50-pyeong office unit in Deokeunji is currently priced at around 460 million won. Financing 70 percent of that at an annual interest rate of 4.5 percent puts monthly interest costs at roughly 1.7 million won — well below what a company would pay in rent for comparable Seoul space.
Improving transport links add to the appeal. The recent installation of the Deokeunji Hangang Overpass bus stop has sped up bus travel to key Seoul hubs including Gongdeok, Hapjeong, Gangnam and Dangsan stations. Ground has also broken on the Daejang-Hongdae Line's Deokeunji Station, which will connect Bucheon's Daejang new town through Deokeunji to Hongik University Station. The line, scheduled to open in 2031, will link to Seoul Metro Lines 2, 5 and 9, among other major routes.
The combination of better transport and lower costs has sustained a steady flow of corporate relocations to Deokeunji DMC IS Biz Tower, the district's main office complex. Contractor IS Dongseo moved its own headquarters from Nonhyeon-dong in Gangnam-gu, Seoul, to Deokeunji in March, signaling confidence in the area's long-term prospects.
The tower sits within IS Valley, a large-scale mixed-use business development spanning five office blocks (Blocks 6 through 10) in Deokeunji. IS Valley has a total floor area of roughly 350,000 square meters — twice that of the 63 Building in Yeouido and larger than Lotte World Tower in Jamsil.
Deokeunji DMC IS Biz Tower, priced at roughly half the rate of Seoul's prime office districts, is currently selling off remaining units. The complex sits near the Han River and within walking distance of World Cup Park, and features corporate-oriented amenities including a large fitness center, a Pilates studio, a conference hall, an office lounge and a studio.
A dedicated shuttle bus service for tenants launches July 1, running during morning and evening commute hours. Routes will serve Gayang Station on Line 9, DMC Station (Line 6, Airport Railroad and Gyeongui-Jungang Line) and Hapjeong Station (Lines 2 and 6), with buses running every 15 to 20 minutes during morning (7:30–8:40 a.m.) and evening (5:30–6:30 p.m.) rush hours.
Meanwhile, Deokeunji DMC Eileen's Court Central — a residential officetel within the complex comprising 210 units across dedicated areas of 78, 84 and 112 square meters — is also fielding inquiries on remaining units. The development is 10 minutes by vehicle from Sangam-dong and six minutes from the Gangbyeon Expressway, making it well suited for live-work convenience. A large indoor play facility, Bounce the First Deokeunji DMC Center, recently opened on the second floor of the complex's office building, adding to a growing list of residential and commercial amenities on site.
For detailed information on the Deokeunji DMC IS Biz Tower pre-sale, including shuttle bus routes and on-site infrastructure, prospective buyers are encouraged to consult available briefing materials from the sales team.
leechemy@heraldcorp.com
