Medical Sector Accounts for 62% of Gangnam Sales… Sales at Host Buildings Rise by Up to 65%
- Cushman & Wakefield Korea Publishes “A Familiar Neighborhood, A Different Neighborhood Season 4 #3: Medical & Gangnam Edition”
- In the Era of 2 Million Foreign Patients, Medical Services Are Transforming Retail Consumption and Building Values
Cushman & Wakefield Korea announced the publication of “A Familiar Neighborhood, A Different Neighborhood Season 4 #3: Medical & Gangnam Edition,” which presents an analysis showing that medical sectors—including dermatology, plastic surgery, and dentistry—account for 62% of Gangnam’s commercial district sales and are transforming both overall building sales and property values.
This report analyzed the impact of medical demand on commercial district consumption and building asset values by combining social big data, credit card big data, and real estate data.
Gangnam Medical Sector: 27% of Stores Account for 62% of Sales
Sales in the medical sector of the Gangnam commercial district increased by 80% year-over-year in 2025. As of December 2025, medical stores accounted for only 27% of the total number of stores in the Gangnam commercial district, but their share of sales reached 62%. At that time, the scale of medical sector sales in Gangnam was approximately 1.5 times larger than the combined total of five major commercial districts—Myeongdong, Hongdae, Seongsu, Dosan Park, and Hannam-dong. Furthermore, 95% of the top 20 brands by sales in the Gangnam commercial district were in the medical sector, significantly outpacing Hongdae (52%) and Myeongdong (30%).
Social big data analysis revealed a trend where online mentions of the Gangnam commercial district translated into actual consumption and demand for space with a lag of approximately two quarters. The vacancy rate in the Gangnam commercial district fell from about 23% in the fourth quarter of 2023 to about 13% in the second quarter of 2026.
Total Building Revenue Increases by Up to 65% After Medical Tenants Move In
The report analyzed that medical tenants simultaneously create opportunities for revitalizing leased spaces, increasing overall building revenue, and boosting asset value . Following the move-in of a medical tenant, overall revenue at the Y Building on Gangnam-daero increased by 65%, while that at the S Building rose by 32%.
Foreign Patients Exceed 2 Million… Medical Tourism Drives Demand for Medical Facilities
In 2025, the number of foreign patients visiting South Korea reached approximately 2.01 million, surpassing the 2 million mark for the first time, while spending on medical tourism totaled approximately 1.7 trillion won—a nearly 12-fold increase over the past five years. Beauty-related fields, such as dermatology (63%) and plastic surgery (11%), accounted for 74% of the medical services sought by foreign patients. By nationality, Japan and China each accounted for about 30%, while the share from Taiwan grew from 0.5% in 2019 to 9.2% in 2025, indicating that the demand base is diversifying, centered on nearby neighboring countries. A virtuous cycle was also observed, where interest sparked by online reviews and social media led to visits to and repeat visits to clinics in Gangnam.
Hotels Are Also Evolving into “Medical Stays”… Idle Space Becomes a Revenue-Generating Asset
Demand for medical tourism is expanding to hotels as well, giving rise to “medical stays”—a residential model that combines lodging with medical care. Gangnam’s O Hotel has housed a medical clinic in approximately 500 pyeong of space on its first basement level, while downtown’s U Hotel was designed from the planning stage as a mixed-use space combining a hotel and a medical clinic. Downtown L Hotel has converted some of its guest rooms on the 8th and 9th floors into medical and wellness spaces. Medical tenants not only provide stable rental income by utilizing idle space but also diversify the hotel’s revenue structure by driving F&B, retail, and beauty spending linked to lodging, which can also lead to expectations of increased asset value.
The Next Hotspots for Medical Facilities: Seongsu, Dosan, and Hannam… Entry Strategies Vary by Commercial District
The growth of the medical sector is not limited to Gangnam. By 2025, medical revenue in Myeongdong had increased by 110% and in Hongdae by 295%, while the number of stores rose by 25% and 14%, respectively. Gangnam, Hongdae, and Myeongdong are already proven markets driven by tourism demand, while Seongsu, Dosan, and Hannam—high-end markets based on premium demand—are now absorbing the medical sector.
Jason Yun, Head of the Retail Leasing Group at Cushman & Wakefield Korea, stated, “Medical facilities have now evolved beyond mere treatment spaces to become a core sector that boosts both consumer spending in commercial districts and the overall value of buildings.” He added, “Building owners and hotel operators should view medical tenants not merely as a source of leased space, but as a factor that transforms the revenue structure of the entire asset.” Yoon continued, “The next phase of growth for medical facilities will depend not on where they are located, but on what kind of demand they meet,” adding, “A leasing strategy tailored to the nature of the commercial district will determine asset value going forward.”
Cushman & Wakefield Clinic Advisory Services
Cushman & Wakefield provides specialized clinic advisory services (C&W Clinic Advisory Services). With 68 clinic lease agreements totaling 12,480 pyeong in leased area, the firm holds the top market share in the industry and has supported the tenant mix for clinics in major medical buildings such as Hyde Park Myeongdong, SR 5-4 (Gangnam/Nonhyeon), and H-CUBE (Hongdae). In major commercial districts such as Gangnam, Sinsa, Cheongdam, Dosan, Myeongdong, Hongdae, Jamsil, and Guro, the firm provides a one-stop solution ranging from market analysis and identification of potential properties to the relocation of existing stores, as well as advisory services for brand expansion and overseas market entry, and management of tenant fit-out construction.
<Photo – “A Familiar Neighborhood, A Different Neighborhood Season 4 #3: Medical & Gangnam Edition,” published by Cushman & Wakefield Korea>
