Authored by the expert who managed and guided the team behind the South Korea Property Pack
Everything you need to know before buying real estate is included in our South Korea Property Pack
South Korea's rental market is dominated by Seoul, where average rents for studios range from ₩700,000 to ₩1.1 million KRW monthly.
As of September 2025, Seoul leads with the highest rental costs, averaging ₩1.2 million KRW for one-bedroom apartments in central areas, while cities like Busan and Incheon offer significantly lower rates at ₩476,000 and ₩454,000 KRW respectively. The market shows strong demand for smaller units due to demographic shifts toward single-person households, with rental yields varying from 2-6.57% depending on location and property type.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Korea, based on reliable facts and data, not opinions or rumors.
Seoul dominates South Korea's rental market with studios averaging ₩700,000-₩1.1 million KRW monthly, while secondary cities like Busan offer more affordable options at ₩476,000 KRW for one-bedroom units.
Total monthly costs including utilities and fees typically range from ₩1.1-1.5 million KRW in Seoul, with rental yields between 2-6.57% depending on location and property type.
| City | Studio Rent (KRW) | 1BR Rent (KRW) | Average Yield (%) |
|---|---|---|---|
| Seoul (Gangnam) | 900,000 - 1,100,000 | 1,200,000 | 2-4% |
| Seoul (Jongno) | 480,000 - 750,000 | 750,000 | 3-5% |
| Busan | 350,000 - 450,000 | 476,000 | 3-5% |
| Incheon | 320,000 - 400,000 | 454,000 | 3-4% |
| Suwon | 400,000 - 550,000 | 550,000 | 4-6% |
| Daegu | 380,000 - 500,000 | 520,000 | 4-5% |
What's the current average rent in South Korea across the main cities and regions?
Seoul commands the highest rental prices in South Korea, with studios averaging ₩700,000 to ₩1.1 million KRW monthly as of September 2025.
One-bedroom apartments in central Seoul average ₩1.2 million KRW ($885), while premium districts like Gangnam see studio rents between ₩900,000-₩1.1 million KRW. More affordable areas such as Jongno offer studios starting around ₩480,000-₩750,000 KRW.
Busan, South Korea's second-largest city, presents significantly lower rental costs with one-bedroom apartments averaging ₩476,000 KRW ($422). Three-bedroom downtown units reach approximately ₩1.35 million KRW, substantially less than comparable Seoul properties. Incheon follows similar patterns with one-bedroom rents averaging ₩454,000 KRW ($402) and three-bedroom apartments at ₩1.25 million KRW.
Regional cities like Daegu and Suwon offer competitive alternatives, with one-bedroom units ranging from ₩520,000-₩550,000 KRW monthly. Jeju Island provides the most affordable option for families, with total living costs around $1,618 monthly for single residents and $3,636 for families.
It's something we develop in our South Korea property pack.
How does rent differ depending on the type of property, like studios, apartments, and houses?
| District | Studio (KRW) | 1BR (KRW) | 2-3BR (KRW) |
|---|---|---|---|
| Gangnam | 900,000 | 1,200,000 | 2,500,000 |
| Itaewon | 1,000,000 | 1,000,000 | 2,300,000 |
| Hongdae | 720,000 | 850,000 | 1,400,000 |
| Sinchon | 680,000 | 800,000 | 1,000,000 |
| Jamsil | 720,000 | 1,000,000 | 2,000,000 |
| Jongno | 480,000 | 750,000 | 1,000,000 |
What are the average rental prices per square meter for different property sizes?
Seoul's prime areas command rental rates of ₩30,000-₩50,000 KRW per square meter monthly for new apartments as of September 2025.
Smaller spaces typically cost proportionally more per square meter due to higher demand from single-person households. In premium districts like Gangnam, purchase prices can exceed $65,000 per square meter, which translates to higher rental rates. The average rental cost per square meter decreases as property size increases, making larger units more cost-effective on a per-square-meter basis.
Outside Seoul, cities like Busan offer significantly lower rates with purchase prices averaging ₩3.7 million per square meter, resulting in proportionally lower rental costs. Regional markets typically see rental rates of ₩15,000-₩25,000 KRW per square meter monthly, especially in less central areas and older buildings.
New developments and luxury buildings command premium rates, while older properties in less desirable locations offer more affordable per-square-meter pricing. The South Korean market shows a clear preference for efficiency, with smaller, well-located units often providing better value for renters.
What's the typical total monthly cost once you add in fees, maintenance charges, and taxes?
Most single renters in Seoul face total monthly costs of ₩1.1-1.5 million KRW ($800-$1,100) when including all expenses.
A typical breakdown includes base rent for a Seoul studio at ₩1.0 million KRW plus utilities averaging ₩160,000 KRW monthly. Maintenance and service fees range from ₩80,000-₩180,000 KRW per month, depending on the building quality and location amenities.
Property taxes typically don't burden tenants directly, as landlords handle annual rates varying from 0.07%-5%, with higher rates for luxury and central properties. However, tenants may face additional fees for security services, affordable housing contributions, and building maintenance.
Outside Seoul, total monthly costs drop significantly, with cities like Busan and Incheon seeing complete monthly expenses ranging from ₩600,000-₩900,000 KRW including utilities and fees. Regional areas offer the most affordable total cost structure, often 30-40% lower than Seoul equivalents.
How does mortgage cost compare with average rent for the same type of property?
Don't lose money on your property in South Korea
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Mortgage payments significantly exceed rental costs for comparable properties in South Korea's current market.
As of September 2025, average mortgage interest rates stand at 3.98%, typically ranging from 4.0-4.2% for 20-year fixed-rate loans. Prime Seoul apartments cost ₩1.12-₩1.3 billion KRW, while properties outside the center range from ₩500-₩600 million KRW.
For a ₩1 billion loan at 4% interest, monthly principal and interest payments reach approximately ₩4.8 million KRW. This represents nearly four times the rental cost for comparable units, making renting significantly more affordable than buying in Seoul's current market.
Regional markets show similar patterns but with smaller absolute differences. In cities like Busan or Incheon, mortgage payments still exceed rental costs by 2-3 times, though the gap narrows compared to Seoul's premium market.
What are example rental prices right now for different kinds of properties in popular areas?
Gangnam district leads Seoul's premium rental market with studios ranging from ₩900,000-₩1.1 million KRW and one-bedroom units at ₩1.2 million KRW.
Itaewon and Hongdae areas offer more moderate pricing, with studios at ₩1.0 million KRW and ₩720,000 KRW respectively. One-bedroom apartments in these trendy districts average ₩850,000 KRW, appealing to young professionals and international residents.
Central Seoul locations command ₩1.2 million KRW for one-bedroom units and ₩2.15 million KRW for three-bedroom apartments. Premium two to three-bedroom units in Gangnam reach ₩2.5 million KRW monthly, reflecting the area's status as Seoul's financial district.
Secondary cities provide substantial savings, with Busan, Suwon, and Daegu offering one-bedroom apartments from ₩476,000-₩550,000 KRW and three-bedroom units ranging from ₩1.3-1.5 million KRW. These markets attract investors seeking higher yields and families requiring more space at affordable rates.
What's the difference in returns and risks if you rent short term versus long term?
Short-term rentals can achieve yields of 6-8% but carry significantly higher operational risks and management complexity.
Short-term rental operators benefit from higher nightly rates and potential peak season premiums, particularly for well-located officetels in tourist areas. However, they face frequent tenant turnover, increased maintenance costs, regulatory scrutiny, and seasonal income volatility that can impact overall profitability.
Long-term rentals provide more stable returns averaging 2-4% in Seoul and 3-5% in regional markets. These arrangements offer predictable monthly income, lower tenant turnover costs, reduced vacancy periods, and less intensive property management requirements.
Risk profiles differ substantially, with short-term rentals exposed to tourism fluctuations, regulatory changes, and platform dependency. Long-term rentals face market rent adjustments and tenant quality concerns but generally provide more consistent cash flow for property investors seeking steady returns.
What are the average vacancy rates by property type and location?
Seoul maintains exceptionally low vacancy rates under 2% for residential properties, especially in prime and newly developed districts.
Busan experiences elevated vacancy rates outside luxury waterfront developments, with regional areas facing inventory challenges due to oversupply in certain segments. New development zones show higher vacancy rates as units enter the market and seek initial tenants.
Incheon demonstrates moderate vacancy levels, with increasing rates in new developments as supply temporarily outpaces demand. The city's proximity to Seoul helps maintain relatively stable occupancy compared to more distant regional markets.
Commercial and officetel properties can experience vacancy rates exceeding 5-10% in overbuilt areas. These property types require more careful location selection and often benefit from mixed-use development strategies that diversify tenant demand sources.
What kinds of renters are most common today, and how do their profiles affect demand?
1. **Young Professionals (20s-30s)**: The largest renter segment, driving demand for studio and one-bedroom units in well-connected urban areas with proximity to business districts and transportation hubs.2. **University Students**: Concentrated around major universities, preferring affordable studios and shared accommodations with flexible lease terms and proximity to campus facilities.3. **Single-Person Households**: Rapidly growing demographic requiring efficient, smaller units with modern amenities, contributing to the strong demand for studios and one-bedroom apartments.4. **Foreign Workers and Expatriates**: Seeking furnished or semi-furnished units in international districts like Itaewon, often willing to pay premium rents for convenience and cultural familiarity.5. **Young Families Starting Out**: Transitioning from rental to ownership, typically requiring two-bedroom units in family-friendly neighborhoods with good schools and transportation access.These demographic trends drive sustained demand for smaller, affordable rental units in urban centers. The aging population and declining birth rates slow demand for larger family homes, particularly outside central districts, creating investment opportunities in well-located smaller properties.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's the average rental yield right now, and how does it vary across cities and property categories?
Seoul's rental yields range from 2-6.57%, with prime districts offering lower yields of 2-4% due to high property values.
New and emerging districts within Seoul provide higher returns, reaching 5-6.57% as property prices haven't yet reached premium levels while rental demand remains strong. Areas undergoing development or infrastructure improvements often present the best yield opportunities within the capital.
Busan delivers yields of 3-5% but carries higher vacancy risks compared to Seoul's stable market. Incheon offers similar 3-4% yields with moderate risk profiles, appealing to investors seeking steady returns outside Seoul's premium pricing.
Officetel and co-living units achieve yields of 3-6%, depending heavily on management quality and location advantages. These property types benefit from flexible use options and appeal to diverse tenant profiles, though they require more active management to optimize returns.
How have rents and yields changed compared to five years ago and compared to one year ago?
Seoul rents increased 3.8% year-over-year from 2024 to 2025, while property prices jumped 32% over the past five years.
The five-year period saw dramatic price appreciation in Seoul's apartment market, with average prices per square meter rising 32% - among the highest globally outside Hong Kong. However, rental increases lagged behind purchase price growth, compressing yields in prime areas from approximately 4% to 2-3%.
Busan experienced opposite trends, with both prices and rents declining roughly 5% in the past year due to oversupply conditions and population outflow to Seoul. This creates potential opportunities for investors comfortable with higher vacancy risks but seeking entry at lower price points.
Regional markets show mixed performance, with some areas near Seoul benefiting from spillover demand while more distant cities face demographic headwinds. The yield compression in prime Seoul areas reflects strong investment demand exceeding rental growth rates.
What are the smartest choices and best performing locations for property investors today, and how do they compare with other major cities worldwide?
Seoul's prime and emerging districts lead investment performance, particularly Gangnam, Jongno, Songpa, and developing suburban areas.
Suwon's Gwanggyo New Town demonstrates strong investment potential, driven by new development projects and improved infrastructure connections to Seoul. The area benefits from planned city development with modern amenities and transportation links.
Yeosu in South Jeolla province gains investor attention through scenic tourism appeal and new facility development. The region offers higher yields than Seoul while benefiting from growing domestic and international tourism demand.
Compared globally, Seoul's apartment prices per square meter exceed New York and London, trailing only Hong Kong, Zurich, and Singapore. While yields remain average to low compared to other APAC cities, capital appreciation potential stays high, especially in growth districts with development catalysts.
It's something we develop in our South Korea property pack.
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.
South Korea's rental market presents clear geographic and demographic divisions, with Seoul commanding premium prices while secondary cities offer more affordable alternatives and potentially higher yields.
The market favors smaller units due to changing household structures, creating sustained demand for studios and one-bedroom apartments in well-connected urban areas, making these property types attractive for both investors and renters seeking efficient living solutions.
It's something we develop in our South Korea property pack.
Sources
- Reddit Seoul Rent Discussion
- UpGrad South Korea Accommodation Guide
- BambooRoutes South Korea Real Estate Market
- Pacific Prime Cost of Living South Korea
- 90 Day Korean Cost of Living
- Nomads Jeju Island Cost of Living
- Korea JoongAng Daily Investment Analysis
- Numbeo Seoul Cost of Living
- BambooRoutes South Korea Housing Market Outlook
- Global Economy South Korea Mortgage Rates