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Busan's rental market offers diverse opportunities across property types, from budget studios at KRW400,000 to luxury coastal villas exceeding KRW6,000,000 monthly.
As of September 2025, rental yields in Busan range from 1.5-2% for traditional rentals, while short-term coastal properties can achieve up to 5% gross returns. The market shows clear district variations, with premium Haeundae commanding triple the rates of suburban zones like Sasang-gu.
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Busan rental costs vary dramatically by location and property type, with coastal districts like Haeundae commanding premium rates while suburban areas offer budget-friendly options.
Short-term rentals in tourist zones deliver higher yields but face seasonal fluctuations, while traditional long-term rentals provide stable income streams.
Property Type | Budget Areas (KRW/month) | Premium Areas (KRW/month) | Average Yield |
---|---|---|---|
Studio/1BR | 350,000-700,000 | 1,200,000-2,800,000 | 1.8-2.2% |
Family Apartments | 700,000-1,200,000 | 2,000,000-5,000,000 | 1.5-2.0% |
Villas/Luxury | 1,000,000-1,500,000 | 3,500,000-6,000,000+ | 1.2-1.8% |
Short-term (Airbnb) | 20-30% premium | 40-60% premium | 3.0-5.0% |
Per sqm (Small) | KRW20,000-30,000 | KRW35,000-45,000 | Variable |
Per sqm (Large) | KRW10,000-15,000 | KRW18,000-23,000 | Variable |

What's the current average rent in Busan by property type?
Studios and one-bedroom apartments in Busan typically rent for KRW700,000 to KRW1,500,000 monthly, equivalent to $500-$1,100 USD.
Family apartments show significant variation, with the city-wide average at KRW613,000 monthly. However, premium neighborhoods like Haeundae or Marine City easily exceed KRW2,000,000, while budget districts offer options between KRW350,000-KRW700,000.
Detached villas and luxury homes command the highest rents, particularly near coastal areas. Properties in Yeongdo-gu and Haeundae can reach KRW3,500,000-KRW6,000,000+ monthly for premium units. Inland residential zones offer more affordable villa options, typically ranging KRW1,500,000-KRW2,500,000 for larger family units.
The rental market clearly segments by location and amenities, with waterfront views, proximity to beaches, and modern facilities driving significant price premiums.
Property age also affects pricing substantially, with newer developments commanding 20-40% higher rents than older buildings in the same neighborhood.
How does rent vary across different districts in Busan?
Haeundae district commands the highest rents due to its beach location and tourism appeal, with studios starting at KRW1,200,000 and luxury properties exceeding KRW6,000,000 monthly.
Marine City, known for its modern skyscrapers and waterfront lifestyle, shows similar premium pricing with studios ranging KRW1,300,000-KRW2,800,000 and family apartments reaching KRW2,500,000-KRW5,000,000.
Seomyeon, the commercial heart of Busan, offers moderate pricing with good transit connections. Studios range KRW900,000-KRW1,800,000, while family apartments cost KRW1,600,000-KRW3,500,000 monthly.
Suburban districts like Yeonje-gu provide affordable options, with studios at KRW600,000-KRW1,000,000 and family apartments at KRW1,200,000-KRW2,400,000. Sasang-gu represents the budget segment, offering studios from KRW400,000-KRW800,000.
Coastal proximity drives the most significant rent premiums, with beachfront properties commanding 150-300% higher rates than inland equivalents.
What's the breakdown of rent per square meter?
Small units under 40 square meters cost KRW20,000-KRW45,000 per month per square meter, with higher rates in prime locations or newly constructed buildings.
Medium-sized properties between 40-80 square meters range KRW13,000-KRW35,000 per square meter monthly. Business-centric districts like Seomyeon offer the best yields in this category due to consistent professional tenant demand.
Large properties exceeding 80 square meters show economies of scale, costing KRW10,000-KRW23,000 per square meter monthly. Older villa stock and properties farther from city center typically offer discounted per-meter rates.
Premium coastal locations can command up to 100% higher per-square-meter rates compared to suburban areas, reflecting the significant value placed on waterfront access and views.
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What's the total monthly cost including maintenance fees and utilities?
Cost Component | Studio/1BR (KRW) | Family Apartment (KRW) | Villa/Luxury (KRW) |
---|---|---|---|
Base Rent | 700,000-1,500,000 | 1,200,000-3,000,000 | 2,000,000-6,000,000 |
Maintenance (Gwanlibi) | 50,000-150,000 | 150,000-300,000 | 200,000-400,000 |
Utilities | 60,000-150,000 | 120,000-250,000 | 180,000-350,000 |
Total Tenant Cost | 810,000-1,800,000 | 1,470,000-3,550,000 | 2,380,000-6,750,000 |
Property Tax (Owner) | Monthly share of 0.15-0.25% annually | Monthly share of 0.15-0.25% annually | Monthly share of 0.15-0.25% annually |
How do financing costs affect rental yield for property investors?
Busan properties currently generate average rental yields of 1.5-2% for traditional long-term rentals, with short-term Airbnb strategies in tourist districts achieving up to 5% gross returns.
With mortgage rates around 3% as of September 2025, monthly loan payments often exceed rental income unless property prices decline significantly. This creates negative cash flow scenarios for many leveraged investments.
Real net yields after accounting for mortgage payments, vacancy periods, property taxes, and maintenance costs typically drop to 0.5-1.5% for long-term rentals. This makes cash purchases more attractive than leveraged investments in the current market environment.
Short-term rental properties in central and coastal districts show better financing viability, potentially delivering gross yields up to 5%. However, management fees, cleaning costs, seasonal vacancy periods, and regulatory risks significantly impact net returns.
Investors should calculate total carrying costs including financing before committing, as many Busan properties currently require substantial capital contributions beyond rental income to service debt.
What are the pros and cons of short-term versus long-term rentals?
Short-term rentals through platforms like Airbnb offer significantly higher gross yields, flexibility in pricing, and perform particularly well in prime coastal zones during peak tourist seasons.
However, short-term rentals face substantial challenges including seasonal occupancy fluctuations with notably lower winter demand, higher vacancy rates averaging 39% annually, and significant management and cleaning expenses that erode net returns.
Long-term rentals provide stable occupancy rates, predictable monthly income streams, fewer regulatory complications, and suit the steady demand from families and professionals seeking residential stability.
The downside of long-term rentals includes lower annual yields compared to short-term alternatives, reduced pricing flexibility, and potential for lengthy vacancy periods between lease renewals if market conditions soften.
Regulatory restrictions and building bylaws increasingly limit short-term rental operations, while competition in tourist areas has intensified, making market entry more challenging for new investors.
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Can you give example rental prices for different neighborhoods?
Haeundae Beach area commands premium pricing with studios averaging KRW1,400,000 monthly, modern two-bedroom apartments reaching KRW2,900,000, and luxury villas exceeding KRW4,500,000.
Seomyeon, as the business district, offers more moderate pricing with studios around KRW1,000,000 and family apartments averaging KRW2,000,000 monthly, making it popular with professionals.
Gwangalli district, known for its nightlife and beach access, prices one-bedroom units between KRW1,100,000-KRW1,700,000, while family apartments start at KRW2,400,000.
Yeonje-gu provides affordable residential options with studios around KRW650,000 and three-bedroom apartments averaging KRW1,800,000, appealing to families seeking value.
Budget-conscious tenants find the best deals in Sasang-gu and Geumjeong-gu, where entry-level studios cost KRW400,000-KRW650,000 and family apartments range KRW900,000-KRW1,250,000 monthly.
What kinds of tenant profiles are most common in Busan?
University students represent a significant tenant segment, particularly near campuses like Pusan National University and Dong-A University, typically seeking studios and one-bedroom units in affordable districts.
Young professionals aged 25-35 prefer central locations like Seomyeon and Centum City, gravitating toward modern officetels and apartments with good transit connections to business districts.
Expatriate families concentrate in premium areas like Haeundae, Gwangalli, and Marine City, prioritizing proximity to international schools and amenities, typically requiring larger apartments or villas.
Remote workers represent a growing segment, particularly since 2023, showing increased demand for coastal properties and short-term flexible arrangements that allow lifestyle flexibility.
Local Korean families maintain steady demand for larger apartments in stable neighborhoods near schools, prioritizing safety, community amenities, and long-term residential stability over trendy locations.
What are the current vacancy rates by property type and neighborhood?
Family apartments in established school zones maintain very low vacancy rates, often near full occupancy due to consistent demand from local families seeking educational proximity.
Studios and officetels experience higher vacancy rates, particularly in older buildings or locations distant from major transit connections, as younger tenants prioritize convenience and modern amenities.
Short-term rental properties through Airbnb average 61% occupancy, meaning approximately 39% vacancy rates annually. Peak summer and autumn months show strong performance, while winter months see significantly reduced demand.
Overall, Busan's core districts maintain relatively stable rental markets, but peripheral and older residential zones face rising vacancy rates due to demographic shifts and preferences for newer developments.
Premium coastal properties show seasonal vacancy patterns, with higher turnover during winter months but quick re-letting during tourist seasons, creating predictable but fluctuating occupancy cycles.

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Which property types deliver the strongest returns for landlords?
Short-term rental apartments near beaches and tourist attractions deliver the strongest gross returns, achieving up to 5% annual yields in stable market years through premium daily rates.
Small apartments near transportation hubs and business districts provide the most reliable returns, offering steady tenant flow and minimizing vacancy risks while maintaining reasonable yields.
Modern studios and one-bedroom units in central locations like Seomyeon consistently outperform larger properties due to higher per-square-meter rents and easier tenant replacement when vacancies occur.
Luxury villas and high-end properties show inconsistent returns, heavily dependent on finding niche, high-income tenants, making them less reliable investment options for most landlords.
Properties with unique features like ocean views, rooftop access, or premium building amenities command sustainable rent premiums that justify higher acquisition costs over time.
What's the current rental yield compared to previous years?
As of September 2025, average rental yields in Busan range from 1.5-2.0% for traditional long-term rentals, with short-term Airbnb properties achieving up to 5% gross returns in prime locations.
In 2024, yields were slightly higher, reaching up to 2.2% on average, before market softening occurred in the latter half of the year due to increased property prices and economic uncertainty.
Looking back to 2020, rental yields averaged 2-3% across most property types, reflecting stronger rental demand relative to property values before the recent price appreciation cycle.
The yield compression over the past five years primarily results from property price increases outpacing rental growth, creating a challenging environment for new investors seeking income-generating assets.
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What are the forecasts for rents and yields over the next decade?
Over the next 12 months, rental rates are expected to remain steady or show minor increases, with yields potentially rising marginally if property prices stabilize rather than continue appreciating rapidly.
The five-year outlook suggests rental rates will slowly increase as demand shifts toward smaller units, driven by shrinking household sizes and growing professional and remote worker populations seeking urban convenience.
Vacancy risks are expected to increase for older, large apartments as demographic trends favor modern, efficiently-sized units in well-connected locations near business districts and transportation.
Over the 10-year horizon, rental rates are projected to increase 10-15% cumulatively, with yields remaining stable unless significant policy changes or demographic shifts alter supply-demand dynamics.
Compared to other major Asian cities like Tokyo, Bangkok, and Taipei, Busan yields are expected to remain competitive but below Seoul's premium market, while maintaining advantages over smaller Korean cities. Short-term rental demand in tourism districts should continue growing unless major regulatory restrictions are implemented.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Busan's rental market offers distinct opportunities across price segments, from budget-friendly suburban options to premium coastal properties.
Understanding district variations, tenant profiles, and yield expectations is crucial for making informed investment decisions in this dynamic market.
It's something we develop in our South Korea property pack.
Sources
- Average Rent in South Korea
- Find All Rentals Busan
- Average Apartment Price South Korea
- Agoda Busan Apartments
- Average Apartment Price per SQM South Korea
- Understanding Utility Fees in Korea
- Annual Airbnb Revenue in Busan
- South Korea Real Estate Trends
- Busan Property Market
- Short-term vs Long-term Rental Investments