Pangyo Tech One, one of the most prominent office assets in Korea’s tech hub district, is back on the market after two years. The upcoming transaction is widely expected to serve as a benchmark for the Pangyo office market, where pricing signals remain closely watched following recent market volatility.

According to commercial real estate sources, Mirae Asset Global Investments held a competitive pitch session on March 28 to appoint a sales advisor. Most shortlisted firms submitted price guidance in the early USD 9,075 per square meter range, aligning with the seller’s expectations.

Given the asset’s gross floor area of 197,236.69 square meters, the sale is expected to achieve between USD 1.3 billion and USD 1.37 billion. 

Located at 534 Baekhyeon-dong, Bundang-gu in Seongnam City, Pangyo Tech One comprises seven underground and fifteen above-ground floors (B7–15F). Its direct connection to Pangyo Station makes it a highly coveted trophy asset in Korea’s leading tech cluster.

The property is held through Mirae Asset’s Private Real Estate Investment Trust No. 62, which is scheduled to mature in 2027. Tech giant Naver previously owned a 45% stake in the fund after investing USD 141.8 million, but exited in 2023 by selling its interest to Singapore’s GIC for USD 252.8 million.

Anchor tenants include Naver and Kakao, with Hyundai Motor Company also occupying space under a sublease.

Two key comparables are shaping buyer expectations:

• 
  
• AlphaRium Tower: Sold in January 2022 to Mastern Investment Management by ARA Korea for USD 737 million (112,254 sqm), at a price of USD 9,075 per square meter.
  This deal took place just before interest rates began to rise and is seen as the recent market peak.
• 
  
• AlphaDom Tower: Acquired in April 2023 by Samsung SRA Asset Management for USD 499.6 million, reflecting a price of USD 7,868 per square meter.

Since the second half of 2022, office pricing in both Pangyo and Seoul has been on a downward trend due to tightening liquidity and rate hikes. Now, market opinions are divided. Some argue that Pangyo Tech One, with its superior location and tenant profile, could trade above the AlphaRium benchmark. Others say that, under current market conditions, it will be difficult for a USD 1.4 billion asset to exceed that threshold.

One industry insider noted that newly leased spaces at AlphaRium Tower and Greats Pangyo are achieving NOC (Net Operating Cost) rents in the mid-USD 89 per square meter range. In comparison, Pangyo Tech One is still leasing space at the mid-USD 60 level.

This rent gap highlights potential upside for new ownership, but securing a buyer at the current pricing range could prove challenging amid ongoing capital constraints.

As a result, the final sale price of Pangyo Tech One is expected to provide critical price discovery for both buyers and sellers navigating Korea’s suburban office market.

This article was originally published by Corebeat on March 31, 2025.