South Korea's Commercial Real Estate Deals Stall as Senior Mortgage Rates Hit 5%+ in September

According to Edaily, on September 3, South Korea's commercial real estate market faced mounting transaction delays as senior secured mortgage rates surged above 5%, up from 4% at the start of the year and 3.8% at year-end 2025—a rise of over 100 basis points.

Multiple high-profile property deals, including Anam Tower and Seoser Rosewood, have been restarted under new advisors after initial sales attempts stalled. The interest rate surge has widened the gap between seller price expectations and buyer affordability, as higher financing costs reduce investors' purchasing power and expected returns.