November 02, 2020 11:34
The commercial real estate market is suffering a deep depression as the conronavirus epidemic drags on, especially in bustling shopping or entertainment areas.
The store vacancy rate in Seoul's party district of Itaewon surged to 30.3 percent in the third quarter of the year from 15.2 percent in the second.
In the Myeong-dong shopping district, the vacancy rate surged from zero to 28.5 percent over the same period.
According to the Korea Appraisal Board, the vacancy rate for the whole of Seoul stood at 5.7 percent in the July-to-September period, up 1.5 percentage points compared to the previous quarter. Across the country it rose from six to 6.5 percent.
Cho Hyung-taik, a real estate consultant, said, "There's a strong chance that the vacancy rate will keep growing as the epidemic continues to harm consumption."
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