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Busan's residential property market has entered a correction phase, with prices declining 1.9% year-on-year as of June 2025.
The average apartment in Busan now costs 12.14 million KRW per pyeong (3.3㎡), marking a significant drop from the 2022-2023 peak when prices reached 23.56 million KRW per pyeong. This correction reflects a broader shift from a seller's market to a buyer's market, driven by oversupply and economic stagnation.
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Busan's property prices are declining, with a 1.9% year-on-year drop as of June 2025, following a sharper 5% decline in 2024.
The market faces significant challenges including oversupply (4,709 unsold units), demographic decline, and weak economic growth, though premium coastal districts remain relatively resilient.
| Metric | Current Status (June 2025) | Trend |
|---|---|---|
| Average Apartment Price | 12.14 million KRW per pyeong | Declining |
| Year-on-Year Change | -1.9% | Negative |
| 5-Year Change | +51.4% | Moderating |
| Unsold Inventory | 4,709 units | Rising |
| Bank of Korea Rate | 2.25% | Declining |
| Transaction Volume | Below 60% of pre-pandemic | Weak |
| Market Forecast 2025-2027 | Continued softness | Bearish |
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.
What is the current average price for apartments in Busan as of June 2025?
The average sale price for apartments in Busan stands at 12.14 million KRW per pyeong (3.3㎡) as we reach mid-2025.
For a standard 84㎡ apartment (approximately 25.45 pyeong), buyers can expect to pay around 422.3 million KRW. This represents a significant correction from the market peak in 2022-2023, when prices reached as high as 23.56 million KRW per pyeong.
The current pricing reflects a nearly 50% decline from peak levels, creating what many analysts describe as a buyer's market. Premium districts like Marine City in Haeundae still command prices above 30 million KRW per pyeong for select complexes, while western districts face substantial price pressure due to oversupply.
These price levels position Busan as significantly more affordable than Seoul, where the average price per pyeong has reached 42.5 million KRW - approximately 3.5 times higher than Busan's average.
The price correction has been particularly pronounced in areas with high unsold inventory, such as Gangseo-gu and Saha-gu, where developers are offering substantial discounts to clear inventory.
How much have Busan property prices changed in the past year?
Residential property prices in Busan have declined by 1.9% year-on-year as of June 2025, following a more severe 5% drop throughout 2024.
This marks the second consecutive year of price declines after the dramatic run-up during 2021-2022. The market has shifted decisively from what was once a strong seller's market to a buyer's market, with transaction volumes remaining below 60% of pre-pandemic levels.
The pace of decline has moderated compared to 2024, suggesting some stabilization, though market sentiment remains cautious. Western districts have experienced the steepest declines, with some areas seeing drops exceeding 10% from peak levels.
In contrast, premium coastal districts like Haeundae and Suyeong have shown more resilience, with prices declining only marginally or remaining stable in the most sought-after complexes.
It's something we analyze in detail in our South Korea property pack.
Which Busan districts are experiencing the fastest price growth in 2025?
Despite the overall market downturn, certain Busan districts continue to show relative strength and selective price growth.
| District | Performance Status | Key Factors |
|---|---|---|
| Haeundae-gu | Most resilient, minimal decline | Premium coastal location, limited supply, Marine City developments |
| Suyeong-gu | Stable to slight growth | Central location, urban redevelopment projects, strong infrastructure |
| Nam-gu | Holding steady | Established residential area, good schools, limited new supply |
| Geumjeong-gu | Affordable growth hotspot | Large-scale new developments, attractive pricing, improving infrastructure |
| Yeonje-gu | Selective growth in redevelopment zones | Urban renewal projects, improved connectivity |
| Western Districts | Continued decline | Oversupply, high inventory, weaker infrastructure |
| Gangseo/Saha | Steepest declines (10%+) | Severe oversupply, 2,000+ unsold units, distance from city center |
What types of residential properties are seeing the biggest price changes?
Newly built apartments in premium locations continue to command the highest prices and show the most resilience in Busan's softening market.
Properties in the Marine City area of Haeundae, particularly those with ocean views, maintain prices above 30 million KRW per pyeong. These luxury developments have seen minimal price declines compared to the broader market.
Mid-sized newly constructed apartments in the 300-400 million KRW range are experiencing strong demand from first-time buyers and young families. This segment benefits from government support programs and represents the sweet spot for affordability and quality.
Conversely, older apartments (over 20 years) and villa-style properties in non-central districts have seen the steepest declines, with some properties losing 15-20% of their value from peak levels. The oversupply of new apartments has particularly impacted demand for older properties.
Large apartments (over 100㎡) in oversupplied districts face the most challenging conditions, with developers offering discounts of up to 20% from initial listing prices to move inventory.
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How do current Busan property prices compare to other major South Korean cities?
Busan's property market remains significantly more affordable than Seoul but has lost ground relative to other major cities over the past five years.
As of June 2025, the average price per pyeong in Seoul (42.5 million KRW) is 3.5 times higher than Busan's 12.14 million KRW. This gap has widened considerably from 2015 when Seoul prices were only 2.1 times higher.
Daejeon, with average prices of 20.35 million KRW per pyeong, now sits at 1.7 times Busan's levels, having experienced stronger growth over the past five years (55.9% vs Busan's 51.4%).
Daegu remains more affordable than Busan at approximately 9.5 million KRW per pyeong, representing about 80% of Busan's price levels. However, Daegu's slower growth rate of 19.7% over five years suggests it hasn't experienced the same level of speculation.
The relatively weaker performance of Busan's property market reflects slower economic growth, with the city's GRDP rising only 28.6% from 2015 to 2023 compared to Seoul's 41.6% growth.
What economic factors are currently influencing Busan property prices?
Several key economic factors are shaping Busan's property market dynamics as we reach mid-2025.
The Bank of Korea's aggressive rate cuts from 3.0% to 2.25% since late 2024 have provided some support, but the impact remains muted due to persistent oversupply and cautious buyer sentiment. Unlike in Seoul, where rate cuts quickly stimulate demand, Busan's market faces structural headwinds that monetary policy alone cannot overcome.
Demographic decline poses the most significant long-term challenge, with Busan experiencing net out-migration and rapid aging. The city's population of economically active residents continues to shrink, reducing the pool of potential homebuyers.
High unsold inventory levels, reaching 4,709 units as of April 2025, create persistent downward pressure on prices. Western districts face particularly acute oversupply, with some areas holding over 2,000 unsold units.
Weak regional economic growth limits household formation and purchasing power. Job creation remains sluggish compared to Seoul and other major cities, contributing to the continued outflow of young professionals.
How has the Yoon administration's housing policy affected Busan's market?
The Yoon administration's deregulation and supply expansion policies have had mixed effects on Busan's property market.
Eased loan restrictions and expanded public housing supply have helped maintain transaction volumes in select areas, preventing a more severe market collapse. However, these same policies have contributed to oversupply in less desirable districts, particularly in western Busan.
Major urban redevelopment projects, including North Port Redevelopment and Eco Delta City, have created pockets of price stability and even growth. These targeted investments have boosted demand in specific zones while accelerating the divide between thriving new districts and declining urban cores.
The administration's focus on large-scale new town development has inadvertently created market polarization. While new developments attract buyers, older neighborhoods face accelerated decline due to limited policy integration between old and new areas.
This is a topic we explore comprehensively in our South Korea property pack.
What is the current level of demand for residential properties in Busan?
Demand for residential real estate in Busan remains weak overall, with significant variations across districts and property types.
Transaction volumes as of June 2025 remain below 60% of pre-pandemic levels, indicating persistent buyer hesitation. The "wait-and-see" attitude dominates market sentiment, with many potential buyers expecting further price declines.
Premium districts like Haeundae and Suyeong see relatively quick absorption of new, well-priced units, but many projects in other areas struggle to fill sales quotas. Developers report that it now takes 6-12 months to sell units that would have sold out in weeks during the 2021-2022 boom.
The rental market is undergoing significant shifts, with preferences moving from traditional Jeonse (lump-sum deposits) to monthly rent arrangements. This transition reflects both landlord preferences in a declining market and tenant concerns about deposit security.
First-time buyers remain the most active segment, particularly for properties in the 300-400 million KRW range, supported by government programs and the relative affordability compared to peak prices.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are expert predictions for Busan property prices in 2026?
Most analysts expect continued market softness through 2026, with prices likely to decline an additional 2-5% from current levels.
The consensus view among Korean property experts suggests that Busan's market will continue underperforming Seoul and other major cities. A recent survey indicates that 36% of Koreans expect further price declines nationally, with Busan facing particular challenges.
Premium coastal districts may see price stabilization by late 2026, supported by limited supply and continued demand from wealthy buyers. However, oversupplied western districts could experience declines exceeding 10% from current levels.
Key factors that could influence 2026 outcomes include the success of major redevelopment projects, any changes in government housing policy following local elections, and whether the Bank of Korea maintains its accommodative monetary stance.
The most optimistic scenarios see prices stabilizing in the second half of 2026, while pessimistic forecasts suggest the correction could extend into 2027, particularly if economic conditions worsen or population decline accelerates.
What are the medium to long-term forecasts for Busan real estate (2030-2045)?
Long-term projections for Busan's property market reflect significant structural challenges that will shape prices over the coming decades.
- Demographic Crisis (2030s): Busan's aging population and continued out-migration will intensify, with the working-age population expected to decline by 15-20% by 2035, severely constraining housing demand.
- Urban Transformation (2030-2035): Success or failure of major projects like North Port Redevelopment and Eco Delta City will determine whether Busan can attract new residents and reverse demographic trends.
- Economic Restructuring (2035-2040): The city's ability to transition from traditional industries to high-tech sectors will be crucial for attracting young professionals and supporting property values.
- Climate Adaptation (2040s): Rising sea levels and increased typhoon activity may impact coastal property values, requiring significant infrastructure investment to protect premium waterfront districts.
- Regional Integration (2040-2045): Potential high-speed rail connections with Japan and enhanced integration with the broader Southeast Asian economy could provide new growth drivers, though benefits remain uncertain.
What are the main risks threatening Busan's property market?
Busan's property market faces multiple interconnected risks that could trigger further price declines.
| Risk Category | Specific Threats | Potential Impact |
|---|---|---|
| Oversupply | 4,709 unsold units, 29,000 annual new supply | Continued price pressure, developer bankruptcies |
| Demographics | Aging population, youth exodus to Seoul | Structural demand decline, 20%+ price drops possible |
| Economic | Weak job growth, sluggish GRDP | Reduced purchasing power, mortgage defaults |
| Speculative Bubble | Some areas still 40%+ above 2020 levels | Correction risk if sentiment shifts |
| Policy Changes | Potential tightening if inflation returns | Higher rates could trigger forced selling |
| Global Factors | China slowdown, shipping industry decline | Port city economy vulnerable to trade shocks |
| Infrastructure | Aging buildings, earthquake vulnerability | Costly upgrades needed, safety concerns |
Which specific property types offer the best value in current market conditions?
In Busan's current buyer's market, certain property types present compelling value propositions for different buyer segments.
Mid-sized apartments (60-84㎡) in emerging districts like Geumjeong-gu offer the best value for first-time buyers, priced 30-40% below comparable units in premium districts. These properties benefit from new infrastructure development while avoiding the severe oversupply issues plaguing western districts.
Older apartments (15-20 years) in established neighborhoods near good schools provide excellent value for families, often priced 50% below new construction. With proper renovation, these properties can match the functionality of newer units at substantial savings.
Properties in redevelopment zones scheduled for reconstruction within 5-10 years present speculative opportunities, though they carry higher risks. Successful projects could see 50%+ gains, but delays are common.
For investors, monthly rental properties in areas popular with young professionals offer stable yields of 4-5%, significantly higher than bank deposits. The shift from Jeonse to monthly rent creates opportunities for cash-flow-focused investors.
We provide detailed analysis of these opportunities 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.
No, they're going down. Busan's residential property market is experiencing a sustained correction, with prices declining 1.9% year-on-year as of June 2025 and further declines expected through 2026-2027.
The combination of severe oversupply (4,709 unsold units), demographic headwinds, weak economic growth, and the widening gap with Seoul's market creates a challenging environment for property prices. While premium coastal districts show resilience, the overall market trajectory remains decidedly negative, making this a buyer's market with continued downside risks.
Sources
- Chosun Biz - Busan Real Estate Market Analysis
- Bamboo Routes - Busan Property Market Report
- Maeil Business - Korean Property Price Comparison
- Korean Property Market Analysis Blog
- Chosun Biz - Busan Unsold Inventory Report
- AI Invest - Bank of Korea Housing Market Analysis
- Bamboo Routes - South Korea Housing Forecast
- Breeze Inflow - Busan Urban Development Analysis
- Bamboo Routes - Busan Price Forecasts
- Global Property Guide - South Korea Price History