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Jeju Island's rental market offers attractive yields ranging from 3% to 8% depending on property type and location. Tourist-focused areas like Hallim-eup and Aewol consistently deliver the highest returns, especially for short-term rentals.
The island's unique combination of domestic tourism demand, growing expat population, and limited property supply creates compelling investment opportunities. However, vacancy rates have increased in traditional apartment rentals while vacation properties in prime locations continue to perform strongly.
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.
Jeju Island rental yields vary significantly by property type and location, with short-term rentals in tourist areas achieving 7-8% yields while long-term apartments typically deliver 3-5%.
The highest yields are found in Hallim-eup, Aewol, and Jungmun-dong, where tourist demand drives premium rental rates for vacation properties.
| Property Type | Location | Long-term Yield | Short-term Yield | Average Purchase Price |
|---|---|---|---|---|
| City Apartment | Jeju City | 3-5% | Up to 7% | 5 million KRW/m² |
| Beachfront Villa | Jungmun-dong | 4-6% | 7-8% | $500,000-$2M+ |
| Rural Apartment | Hallim-eup | 4-5% | 7%+ | From $180,000 |
| Commercial Property | Central areas | 5-8% | Variable | Premium pricing |
| Coastal House | Aewol | 4-6% | 7-8% | 20-40% premium |
What are the typical purchase prices for different property types in Jeju Island, including all fees and taxes?
As of September 2025, Jeju Island property prices vary significantly based on location and property type.
City center apartments in Jeju City average around 5 million KRW per square meter, with premium locations reaching 14 million KRW per pyeong (3.3 m²). Outside the city center, prices drop to approximately 836,000 KRW per square foot, making suburban areas more accessible for investors.
Beachfront villas and houses command substantial premiums, with entry-level rural apartments starting around $180,000 while luxury coastal villas can exceed $2 million. Prime oceanfront locations typically carry 20-40% premiums over similar inland properties due to their desirability among both renters and buyers.
Commercial properties in central business districts command premium pricing due to transport access and foot traffic, though exact figures vary widely based on specific location and intended use.
Transaction costs add significant expense to any purchase, including acquisition tax (1-4%), registration tax (0.2-2%), annual property taxes (0.1-0.4%), legal fees (0.5-2%), agent commissions (0.5-1%), plus miscellaneous costs for notary services, translation, and insurance. Foreign buyers must meet the investment visa threshold of 500 million KRW ($374,000) for most purchases.
How do rental yields differ between apartments, villas, houses, and commercial properties?
Rental yields on Jeju Island vary dramatically by property type and rental strategy.
| Property Type | Long-term Rental Yield | Short-term/Airbnb Yield | Key Factors |
|---|---|---|---|
| Apartments | 3-5% | Up to 7% | Urban demand, tourist zones |
| Villas/Houses | 4-6% | 7-8% | Prime coastal locations |
| Commercial Properties | 5-8% | Variable | Business districts, tourism hubs |
| Beachfront Properties | 4-6% | 8%+ | Seasonal tourism demand |
| Rural Properties | 4-5% | 6-7% | Lower purchase costs |
Commercial properties generally offer the highest long-term yields at 5-8%, particularly in tourist hotspots where businesses benefit from consistent foot traffic. However, these properties require larger initial investments and more complex management.
Villas and houses in coastal areas achieve strong yields of 4-6% for long-term rentals, jumping to 7-8% when operated as short-term vacation rentals, especially during peak tourism seasons.
Which areas of Jeju Island currently offer the highest rental yields?
Hallim-eup consistently delivers the highest rental yields on Jeju Island, often exceeding 7% due to its combination of affordable land prices and extremely high tourist-driven rental demand.
Aewol represents an emerging coastal hotspot with high yield potential and strong tourist demand, particularly for vacation rentals and short-term stays. The area benefits from scenic coastal views and proximity to popular attractions while maintaining relatively affordable property prices.
Jungmun-dong in Seogwipo offers excellent yields for luxury resort properties, with rising demand and high short-term rental yields. This area particularly appeals to international tourists seeking premium accommodations near major resort facilities.
Jeju City provides stable long-term rental demand from locals, expats, and remote workers, typically delivering 3-5% yields for traditional rentals but increasing significantly for short-term vacation properties.
Seogwipo generally offers lower purchase prices than Jeju City while maintaining higher vacation rental yields, making it attractive for investors seeking better entry points into the market.
How does the surface size of a property impact both rental income and yield?
Smaller properties typically command higher percentage yields on Jeju Island, with one-bedroom apartments delivering the best yield-to-investment ratios compared to larger family units.
Studio and one-bedroom apartments are easier to fill year-round, experience lower vacancy rates, and attract both long-term renters and short-term tourists. These smaller units also require lower initial investments while generating competitive rental income per square meter.
Larger villas and houses may generate higher gross rental income but typically deliver lower percentage yields due to significantly higher acquisition costs and ongoing maintenance expenses. However, luxury properties in prime locations can achieve premium rental rates that offset these higher costs.
Commercial properties and resort-style accommodations see yields proportional to the number of rooms and overall size, though success depends heavily on management efficiency and consistent occupancy rates.
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What are the ongoing costs of ownership, including property taxes, maintenance, and management fees?
Annual property taxes on Jeju Island range from 0.1% to 0.4% of the assessed property value, representing a relatively modest ongoing cost compared to many international markets.
Apartment maintenance fees typically cost 150,000-350,000 KRW per month depending on building services, amenities, and management quality. These fees cover common area maintenance, security, and building management services.
Professional management fees for rental properties, especially short-term rentals, typically consume 10-20% of gross rental income. This includes marketing, guest communication, cleaning, and maintenance coordination.
Utilities and insurance costs vary but typically represent 5-15% of gross rental income annually. Property owners must budget for regular maintenance, repairs, and periodic renovations to maintain competitive rental rates.
Legal and resale fees include capital gains taxes, agent commissions, and legal costs when eventually selling the property, which can significantly impact overall investment returns.
How does mortgage financing affect the net rental yield compared with buying outright?
Mortgage financing typically reduces net rental yields by 2-3 percentage points compared to cash purchases, as current base interest rates hover around 3% in South Korea.
Mortgaged properties face higher risk during vacancy periods, as loan payments continue regardless of rental income. This creates additional pressure to maintain consistent occupancy and can force owners to accept lower rents during market downturns.
Cash purchases eliminate interest expenses and provide maximum flexibility in rental strategy, allowing owners to weather vacancy periods more easily and potentially hold out for premium rental rates.
However, mortgage financing can improve overall return on invested capital by allowing investors to leverage their cash across multiple properties rather than tying up large amounts in a single investment.
The optimal financing strategy depends on individual risk tolerance, available capital, and investment timeline, with cash purchases offering stability and mortgaged purchases potentially providing higher absolute returns through leverage.
What are the main differences in returns between short-term rentals like Airbnb and long-term leases?
Short-term vacation rentals typically generate 7-8% gross yields in tourist areas of Jeju Island, significantly outperforming long-term leases which average 3-5% yields.
Airbnb and vacation rental properties command higher monthly income but require active management, marketing, and constant guest turnover. This strategy works best in tourist-heavy areas like Hallim-eup, Jungmun-dong, and coastal Aewol.
Long-term leases provide stable, predictable income with minimal management overhead and lower vacancy risk, particularly in urban areas serving locals, expats, and remote workers. These rentals appeal to families, professionals, and long-term residents seeking stability.
Short-term rentals face seasonal fluctuations, with peak summer months generating significantly higher income than winter periods. Occupancy rates can vary dramatically based on tourism trends and local events.
Operational costs are substantially higher for short-term rentals due to frequent cleaning, higher utilities, guest amenities, and marketing expenses, though gross yields typically compensate for these additional costs in prime locations.
Can you give me example monthly rental incomes for different property types and sizes?
| Property Type | Size | Location | Monthly Rent (KRW) | USD Equivalent |
|---|---|---|---|---|
| 1BR City Apartment | ~33 m² | Jeju City | 669,000 | ~$560 |
| 3BR City Apartment | ~99 m² | Jeju City | 1,400,000 | ~$1,170 |
| Beach Villa | 4BR, 150 m² | Jungmun-dong | 5,000,000+ | ~$4,180 |
| Airbnb Studio | Studio/1BR | Jeju City | 1,224,633 | ~$1,045 |
| Vacation Rental | Studio/1BR | Seogwipo | 863,000 | ~$736 |
| Luxury Villa | 5BR, 200+ m² | Coastal Aewol | 6,000,000+ | ~$5,000 |
| Rural Apartment | 2BR, 66 m² | Hallim-eup | 800,000 | ~$670 |
These rental figures reflect current market conditions as of September 2025 and demonstrate the significant income potential differences between property types and locations across Jeju Island.
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.
Who are the main renter profiles in Jeju Island, both for short-term and long-term stays?
Long-term renters on Jeju Island include a diverse mix of locals, expatriates from China, Japan, and the United States, remote workers, retirees, families, and professionals seeking the island's lifestyle benefits.
The growing remote work trend has attracted digital nomads and location-independent professionals who value Jeju's natural beauty, slower pace of life, and relatively affordable cost of living compared to Seoul or Busan.
Short-term rental guests are primarily domestic Korean tourists, international visitors especially from China and Japan, digital nomads on "workation" stays, and business travelers attending conferences and events.
Families seeking vacation accommodations represent a significant segment, particularly during school holidays and summer months when larger villas and houses command premium rates.
The island's reputation as a honeymoon and romantic getaway destination creates consistent demand for luxury accommodations and beachfront properties throughout the year.
What are the average vacancy rates in different areas and property types, and how do they affect yields?
Traditional apartment rentals in Jeju experienced concerning vacancy trends, with average occupancy dropping to 59.2% in March 2025, the lowest level in over four years.
Vacation rentals and Airbnb properties maintain occupancy rates of 32-38% in tourist areas, with significantly higher rates during peak summer months when demand surges.
Luxury resort properties in Jungmun-dong have seen remarkable recovery, with occupancy surging from 30% in 2020 to 80% in 2023, demonstrating the resilience of premium tourist accommodations.
Higher vacancy rates directly reduce effective yields, as properties generating income only 60% of the time cannot achieve theoretical maximum returns. This makes location selection and property type crucial for maintaining competitive yields.
Successful investors focus on areas with consistently strong demand and implement dynamic pricing strategies to maximize occupancy during both peak and off-peak periods.
How have rental yields and rents changed compared with five years ago and one year ago, and what are the forecasts for the next 1, 5, and 10 years?
Five years ago in 2020, Jeju Island experienced double-digit rental and price growth, with yields peaking at 8% in prime tourist regions during the post-pandemic domestic tourism boom.
Over the past year through 2024, the market has moderated with apartment rents increasing a modest 3% while yields have stabilized in the 3-6% range depending on location and property type.
Short-term forecasts for 2026 predict continued sustainable growth as tourism patterns normalize and remote work trends support residential demand in desirable island locations.
Medium-term projections for 2026-2030 suggest yields will remain steady for urban and long-term rental properties, while tourist zone yields face potential oversupply risks depending on tourism fluctuations and regulatory changes.
Long-term outlook through 2035 depends heavily on South Korea's economic growth, tourism industry development, and potential regulatory changes affecting foreign investment and short-term rental operations.
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How do Jeju Island's rental yields compare with other similar tourist destinations or major cities?
| Location | Typical Gross Yield (2025) | Market Characteristics |
|---|---|---|
| Jeju Island | 3-7% | Mixed urban/tourist market |
| Seoul | 2-3% | Major urban center |
| Bangkok Center | 4-6% | International business hub |
| Phuket | 5-8% | Prime resort destination |
| Bali | 7-9% | Top tourist zone |
| Gold Coast | 4-6% | Australian coastal city |
| Langkawi | 6-8% | Malaysian island resort |
Jeju Island's rental yields significantly outperform major South Korean cities like Seoul but trail behind top-tier Southeast Asian resort destinations like Bali and certain areas of Phuket.
The island offers a compelling middle ground between the stability of urban markets and the higher yields of pure tourist destinations, making it attractive for investors seeking balanced risk-return profiles.
Compared to other island destinations in the Asia-Pacific region, Jeju provides competitive yields with the added benefits of South Korea's stable political environment, strong legal framework, and developed infrastructure.
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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.
Jeju Island's rental market offers compelling opportunities for investors willing to navigate its unique characteristics and seasonal fluctuations.
Success depends heavily on location selection, property type, and management strategy, with tourist-focused areas consistently outperforming traditional residential markets in terms of rental yields.
Sources
- Jeju Island Price Forecasts - BambooRoutes
- Jeju Island Property Analysis - BambooRoutes
- House Prices Jeju Island - BambooRoutes
- Foreigners Buying Property Jeju Island - BambooRoutes
- Best Areas Jeju Island - BambooRoutes
- Jeju Island Real Estate Forecasts - BambooRoutes
- Cities with Highest Rental Yields - InvestAsian
- Jeju Airbnb Market Data - AirROI
- South Korea Rental Yields - Global Property Guide
- Jeju Property Market Report - Maeil Business