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Daejeon rental market offers competitive rates with studio apartments averaging ₩600,000 monthly and two-bedroom units ranging from ₩900,000 to ₩1,500,000 as of September 2025.
The city stands out among major Korean cities with rental yields reaching 4-5% for apartments and an impressive 7.8% for officetels, significantly outperforming Seoul and Busan. University districts like Yuseong-gu command premium rents while peripheral areas offer more affordable options, creating diverse opportunities for both renters and property investors.
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Daejeon rental prices vary significantly by property type, with studios averaging ₩600,000 monthly while three-bedroom apartments can reach ₩2,500,000 in premium locations.
The city offers exceptional rental yields of 4-5% for apartments and 7.8% for officetels, substantially higher than Seoul's 1.1-2.0% returns, making it attractive for property investors.
| Property Type | Average Monthly Rent (KRW) | Rental Yield |
|---|---|---|
| Studio (One-room) | 400,000 - 900,000 | 4-5% |
| One-bedroom Apartment | 600,000 | 4-5% |
| Two-bedroom Apartment | 900,000 - 1,500,000 | 4-5% |
| Three-bedroom Apartment | 928,000 - 2,500,000 | 4-5% |
| Officetel | 700,000 - 1,500,000 | 7.8% |
| Coliving House | 1,000,000 - 2,000,000 | 4-5% |
| Villa/Row House | 1,000,000 - 3,000,000 | 4-5% |
What are the current average rents in Daejeon by property type?
Studio apartments in Daejeon currently rent for ₩400,000 to ₩900,000 monthly, with a typical average around ₩600,000 as of September 2025.
One-bedroom apartments maintain steady rates at approximately ₩600,000 per month, while officetels command higher rents ranging from ₩700,000 to ₩1,500,000 monthly. Two-bedroom apartments fall between ₩900,000 and ₩1,500,000, making them attractive for small families and working professionals.
Coliving houses represent the premium segment at ₩1,000,000 to ₩2,000,000 monthly, targeting young professionals seeking modern amenities and community living. Three-bedroom apartments span ₩928,000 to ₩2,500,000 depending on location and condition, while villas and row houses for families range from ₩1,000,000 to ₩3,000,000 in desirable neighborhoods.
An 85m² furnished apartment in a normal area averages ₩885,000 monthly, providing a practical benchmark for medium-sized family units.
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How do rents vary across Daejeon's main neighborhoods and districts?
Yuseong-gu commands the highest rents in Daejeon due to its proximity to KAIST, Chungnam National University, and major research clusters.
This district attracts students, tech workers, and research professionals, creating robust rental demand that pushes prices up to 30% above peripheral areas. Seo-gu ranks as the second most expensive district, popular with young professionals who value its new residential complexes, modern amenities, and commercial developments.
Daedeok-gu offers moderate rental rates while maintaining strong appeal among research workers and technology sector employees. Jung-gu presents a mixed picture, with the city center commanding lower to mid-range rents due to strong demand from young professionals, while older core areas like traditional Jung-gu and Dong-gu feature the most affordable options.
Newer developments in central and university-adjacent areas consistently achieve premium rents, while peripheral districts with aging building stock experience lower demand and correspondingly reduced rental rates.
What rental differences exist based on property size and surface area?
Compact properties from 20-40m² typically house studio units and rent for ₩400,000 to ₩900,000 monthly, offering the most affordable entry point into Daejeon's rental market.
Mid-sized properties spanning 50-85m² accommodate two-bedroom family units and command ₩900,000 to ₩1,500,000 monthly. These represent the market's sweet spot for small families and working couples seeking adequate space without premium pricing.
Large properties exceeding 100m² include spacious villas and luxury apartments, with monthly rents ranging from ₩1,500,000 to ₩2,500,000. The average purchase price per square meter sits at approximately ₩5.2 million in 2025, establishing the market baseline for rental calculations.
Property size directly correlates with rental pricing, with larger units offering better value per square meter in absolute terms while smaller units provide higher per-meter rates due to fixed overhead costs and premium placement in dense urban areas.
What are the total monthly costs including utilities, charges, and fees?
Monthly utilities including electricity, gas, water, and internet typically add ₩100,000 to ₩250,000 to base rental costs for one to two-bedroom units.
| Cost Component | Monthly Amount (KRW) | Notes |
|---|---|---|
| Base Rent (2BR) | 900,000 - 1,500,000 | Varies by location and condition |
| Utilities | 100,000 - 250,000 | Electricity, gas, water, internet |
| Maintenance Fees | 50,000 - 120,000 | Building upkeep and common areas |
| Property Taxes | Minimal for renters | Owners pay 0.1-0.4% annually |
| Total Monthly Cost | 1,050,000 - 1,650,000 | Complete housing expense |
Maintenance and common charges range from ₩50,000 to ₩120,000 monthly depending on property type and amenities. Most renters face minimal direct property tax obligations, as owners typically absorb the annual property tax burden of 0.1-0.4% of property value.
A typical two-bedroom apartment generates total monthly housing costs between ₩1,050,000 and ₩1,650,000 when combining rent, utilities, and maintenance fees.
How do financing costs impact rental profitability for property owners?
Property owners in Daejeon face average mortgage rates of 4.2% annually for fixed-rate financing, directly impacting their rental investment returns.
Gross rental yields average 4-5% for apartments and reach 7.8% for officetels, representing some of Korea's highest returns. Owners utilizing mortgage financing above 60% loan-to-value typically achieve net cash flow margins between 0.5% and 2.0% after accounting for loan payments, taxes, and maintenance expenses.
Daejeon significantly outperforms major Korean cities in rental yields, with Seoul delivering only 1.1-2.0% and Busan matching that range. This yield advantage allows leveraged investors to maintain positive cash flow even with moderate occupancy rates and standard financing terms.
Property financing becomes particularly attractive for officetel investments, where 7.8% gross yields provide substantial cushion above financing costs, enabling profitable leverage strategies for qualified investors.
How do short-term rental rates compare to long-term rental options?
Short-term rentals in Daejeon generate average monthly revenue of ₩1,197,000 with daily rates averaging ₩61,968, potentially reaching ₩1,200,000 monthly at full occupancy.
However, actual occupancy rates average 61%, meaning properties typically achieve 223 occupied nights annually. Long-term rental contracts for 12+ months typically range from ₩600,000 to ₩1,500,000 monthly for one to two-bedroom units, providing more predictable income streams.
Long-term rentals offer superior stability and slightly higher yields for most property owners, while short-term options can outperform when occupancy exceeds 70%. Short-term rental success depends heavily on location proximity to hospitals, universities, and business districts that generate consistent visitor demand.
Property owners should consider their management capacity and local regulations before choosing between rental strategies, as short-term rentals require active management and marketing efforts that long-term arrangements avoid.
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Can you provide concrete examples of current rents for different property types?
A remodeled studio in Daedong currently rents for ₩300,000 monthly, representing one of the most affordable options in the market.
Modern one-room units in areas like Gayang-dong command ₩160,000 monthly, while newly built loft-style three-room properties in Yongdu-dong reach ₩1,000,000. Two-bedroom Airbnb properties in Doan-dong generate ₩1,470,000 monthly when optimally managed.
Central officetels typically rent between ₩800,000 and ₩1,500,000 monthly, while general coliving houses average ₩1,200,000. These concrete examples demonstrate the significant price variation based on location, property condition, and target tenant demographics.
Recent property listings show consistent pricing patterns, with premium locations and newer constructions commanding substantial premiums over older properties in peripheral areas.
Who are the typical renters in Daejeon and how do they influence demand?
University students represent a major tenant category, primarily seeking studio and one-bedroom units near Yuseong-gu to minimize commuting to KAIST and Chungnam National University.
Young professionals working in technology, research, and government sectors favor officetels and apartments in Yuseong-gu and Seo-gu, driving demand for modern amenities and convenient locations. Small families opt for two to three-bedroom apartments and villas in Seo-gu and Daedeok-gu, prioritizing space and family-friendly neighborhoods.
Short-stay visitors including expatriates, interns, and business travelers choose Airbnbs, coliving spaces, and guest houses for flexible accommodation options. Single-person households now comprise 39% of the rental market, creating strong demand for compact, flexible housing units.
This diverse tenant mix ensures steady demand across property types while creating specialized market segments that respond to different economic and demographic factors.
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What are the current vacancy rates across neighborhoods and property types?
Prime districts including Yuseong-gu, Seo-gu, and Daedeok-gu maintain very low vacancy rates between 3-5% as of September 2025.
These areas benefit from strong tenant demand driven by university proximity, technology sector employment, and modern infrastructure development. Peripheral and older districts like traditional Jung-gu and Dong-gu experience higher vacancy rates ranging from 7-12% due to aging building stock and reduced tenant preference.
Short-term rental vacancy fluctuates seasonally, with available properties experiencing 10-40% vacancy depending on peak and off-peak periods. Summer months and university breaks typically see higher short-term rental availability.
The significant vacancy rate differential between prime and peripheral areas creates distinct investment opportunities, with prime locations offering stability at premium prices while peripheral areas provide potential value plays for patient investors.
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What rental yields are property owners achieving across different areas and types?
Daejeon property owners achieve gross rental yields averaging 4-5% for apartments, significantly outperforming other major Korean cities.
Officetels deliver exceptional yields of 7.8%, representing the highest returns among all property types in the city. These yields substantially exceed Seoul's 1.1-2.0% apartment yields and 4.9% officetel returns, while also surpassing Busan's 1.0-2.0% range across property categories.
Daegu delivers comparable apartment yields of 1.1-2.0% but falls short of Daejeon's performance in officetel investments. The yield advantage stems from Daejeon's relatively affordable property prices combined with stable rental demand from the education and technology sectors.
Both city center and suburban areas in Daejeon maintain similar yield ranges of 4-5% for apartments, indicating consistent market performance across different neighborhoods and reducing location-specific investment risk.
How have rents and yields evolved over recent years and what are the forecasts?
Daejeon property prices have increased approximately 35% over the past five years since 2020, with recent annual rent increases ranging from 3-10% depending on location and proximity to universities and technology zones.
The past year has seen roughly 10.7% price increases per square meter alongside 3% upward rental price changes, indicating strong market momentum. Premium districts near educational and research facilities have experienced the highest appreciation rates.
Forecasts for the next 1-3 years predict moderate growth with rents and prices rising 3-6% annually, primarily driven by continued demand in premium districts where supply remains limited. The 5-10 year outlook suggests stable yields with ongoing demand from students and young professionals supporting rental markets.
Government supply initiatives may moderate rapid price appreciation, but technology sector expansion and university growth will sustain underlying rental demand. Co-living space development represents an emerging trend that could reshape certain market segments over the medium term.
How do Daejeon's rental prices and yields compare with other major Korean cities?
Daejeon rental prices remain significantly lower than Seoul and Busan while delivering substantially higher yields, creating attractive opportunities for both renters and investors.
| City | Studio Rent (KRW) | 2BR Rent (KRW) | Apartment Yield | Officetel Yield |
|---|---|---|---|---|
| Daejeon | 600,000 | 1,000,000-1,500,000 | 4.5% | 7.8% |
| Seoul | 900,000 | 2,100,000 | 2.0% | 4.9% |
| Busan | 550,000 | 1,250,000 | 2.0% | 2.0% |
| Daegu | 450,000 | 950,000 | 1.8% | 1.5% |
Busan offers slightly lower rents than Daejeon but with significantly reduced yields and less urbanization. Daegu provides the cheapest rental options but delivers lower yields and reduced technology sector demand compared to Daejeon.
Seoul commands the highest rents and most competitive market conditions while offering the lowest yields among major cities. Daejeon strikes an optimal balance for investors seeking solid returns with manageable entry costs and stable tenant demand from education and technology sectors.
Prime district vacancy rates in Daejeon (3-5%) compare favorably to Seoul (<4%) while substantially outperforming Busan (5-8%) and Daegu (7-10%), indicating stronger rental market fundamentals.
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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.
Daejeon offers compelling rental opportunities with competitive pricing, exceptional yields, and stable demand from education and technology sectors as of September 2025.
The city provides superior investment returns compared to Seoul, Busan, and Daegu while maintaining affordable entry points for both renters and property investors seeking solid cash flow and capital appreciation potential.
Sources
- BambooRoutes Daejeon Real Estate Market Analysis
- Stay Korea Long-term Housing Guide 2025
- BambooRoutes Daejeon Property Report
- Numbeo South Korea Property Investment Data
- Expatistan Daejeon Cost of Living
- Rentola Daejeon Property Listings
- Nomads Daejeon Living Costs
- Maeil Business Korea Real Estate Report
- BambooRoutes South Korea Real Estate Trends
- Airbtics Daejeon Airbnb Revenue Analysis