All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Busan's property market is included in our pack
Thinking of buying real estate in Busan? You're not alone!
Many people find Busan's coastal charm enticing and fantasize about owning a beachfront apartment or a modern condo with ocean views.
Would it be a profitable investment, though? Are property prices increasing in Busan? Is it expensive? Is it wiser to buy property in Haeundae or Nampo-dong? What are the taxes? Where can you get a yield above 7%?
We have the answers.
The BambooRoutes team has thoroughly explored this market. As a matter of fact, we have condensed all our findings in a pack. Get it now.
In the lines below, we'll provide you with helpful information.
How's the property market in Busan?
Are property prices rising or falling? Let's consult the most recent data and stats.
Types of properties
In Busan, there are various types of properties available for sale.
These include apartments, houses, villas, and condominiums.
Apartments are typically located in high-rise buildings and offer various sizes to cater to different needs. Houses and villas are more spacious options, often with a yard or garden, providing a more suburban lifestyle. Condominiums, on the other hand, are similar to apartments but are found in smaller buildings.
Additionally, there might be commercial properties like shops and offices available for sale.
Whether you're looking for a cozy apartment in the bustling city or a charming house with a garden, Busan offers a diverse range of properties to suit various preferences and budgets.
Better to buy or rent?
(If you plan to use it yourself and not as a rental)
If you're considering settling in Busan, the second-largest city of South Korea, you might be weighing the options of buying a home or opting for a rental property.
Obviously, it's better to buy if you plan to stay in Busan for the long-term, as you will build equity and have more control over your living situation.
Actually, decisions become clearer with the property price-to-rent ratio in mind. It's a simple way to gauge the impact of rental earnings on covering the property's cost.
According to Numbeo, the property price-to-rent ratio in Busan is around 92.07, which is one of the highest in the world.
If the ratio is high, it indicates that buying properties are more expensive in the short term compared to renting. However, buying can still be a viable option if you plan to live in the property for an extended period or if you believe property values will increase significantly over time.
Property prices in Busan
On average, according to the last data from Kookmin bank, South Korea, purchasing a property in Busan would cost you around $9,300 per square meter.
There are big differences, obviously. An apartment in Haeundae might have a different price per square meter than a house in Nampo-dong. We actually give you a more detailed breakdown in our pack for buying property in Busan and in South Korea.
To help you understand better, it is similar to the prices you can find in a city like Milan.
Also, housing prices in Busan are 19% cheaper than in Seoul.
The most expensive neighbourhoods in Busan are probably Haeundae-gu, Dongnae-gu, and Centum City, while the cheapest neighbourhoods are likely Sasang-gu, Geumjeong-gu, and Saha-gu.
Trends
First and foremost, we have to acknowledge that South Korea currently stands out for its remarkable stability. The last Fragile State Index that has been reported for this place is 32.7.
Keep this in view when pondering the viability of buying a property in in Busan.
Also, according to the International Monetary Fund (IMF), South Korea's economy is expected to soar by 9.9% in the coming 5 years, resulting in an average GDP growth rate of 2%.
If you intend to invest in real estate in Busan it's a good thing because a positive growth rate (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.
Also, in South Korea, the average GDP per capita has changed by 8.3% over the last 5 years. It's a good performance.
These are cues signaling that property prices in Busan might go up in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in South Korea right now.
Buying property in Busan
Buying real estate in Busan can be challenging due to the difficulty of obtaining reliable and up-to-date information throughout the purchasing process. That's why we have created the pack to buy property in Busan and in South Korea.
Buying process
Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.
Now, we're providing you with a simplified version.
This is the step-by-step process to purchase a property in Busan:
- Research Busan's property market and set a budget.
- Appoint a licensed real estate agent familiar with Busan's regulations.
- Visit properties and choose one that meets your requirements.
- Negotiate the price and terms with the seller.
- Sign a written agreement (Deed) called 'Chonsei' or 'Wolse,' depending on the lease type.
- Conduct a property survey with a registered surveyor.
- Secure financing through a local bank or mortgage lender.
- Register the property at the local district office using a 'Juminhyo' (Residency Certificate).
- Pay acquisition taxes and registration fees to the local tax office.
- Finalize the transaction at a notary office with a 'Juminseonggwan' (Certificate of Residence).
- Transfer funds through a designated Korean bank account for international buyers.
- Receive the property ownership certificate known as 'Jibeonjeungdo.'
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in South Korea.
Make a profitable investment in Busan
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Where to find a property
Explore a variety of real estate options in Busan through these leading platforms:
- Hometown Realty: Located in Seoul, South Korea, Hometown Realty offers an extensive range of high-rise apartments, villas, single houses, and short-term rentals. Visit their website: hometownrealty.co.kr.
- Seoul Homes: Focusing solely on Seoul, South Korea properties, Seoul Homes provides diverse choices for rent, sale, and pre-sale. Discover more at: seoulhomes.kr.
- Smile Seoul Real Estate: A respected platform headquartered in Seoul, Korea, Smile Seoul Real Estate showcases properties for sale and rent across different neighborhoods. Learn more: ssre.co.kr.
- AtSeoul Real-Estate: Specializing in high-rise apartments, villas, single houses, and office spaces, AtSeoul Real-Estate is a reliable brokerage firm situated in Seoul, South Korea. Find out more: atseoul.co.kr.
- Alice Realty: An established real estate agency operating in Seoul, South Korea, Alice Realty presents a diverse selection of properties, including high-rise apartments, villas, and single houses. Explore their offerings: alicerealty.net.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in South Korea.
Properties & Budget
As mentioned before, the average price per sqm in Busan is $9,300. A 1-bedroom property (60 sqm) would cost approximately $558,000, and a 2-bedroom (85 sqm) would cost approximately $791,000.
However, prices will differ based on the attributes of the property and its specific location.
Prime property locations in Busan usually have higher prices. A condo in Haeundae could set you back around $1,070,000, and a property in Seomyeon might be priced at $990,000.
Nevertheless, there are spots that are more accommodating to your wallet. You may come across a residence in Buk-gu for $920,000 or a residence in Nam-gu for just $590,000.
We give a more detailed breakdown in our full pack for buying property in South Korea.
Risks and pitfalls
Here are the main pitfalls specific to buying property in Busan, South Korea:
- Foreign ownership restrictions in certain areas.
- Complex registration process and language barriers.
- Lack of disclosure on earthquake-prone zones.
- Limited parking availability or costly parking fees.
- Zoning regulations affecting property usage.
- Difficulty obtaining financing as a foreign buyer.
- Confusing jeonse (lease) contracts and high deposits.
- Overlooking regulations on short-term rentals like Airbnb.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our South Korea Property Pack
Living in Busan
Living in Busan is an exciting and vibrant experience, with plenty of culture, entertainment, and beautiful scenery to explore, making it an ideal place to buy property.
Cost of living
The cost of living in Busan is generally lower than in other major cities in South Korea, such as Seoul. It is a relatively affordable city, with a wide range of housing options and grocery prices that are relatively low compared to other cities.
Here are some examples to better understand the cost of living in Busan:
- Monthly rent for a modern apartment in the lively Haeundae district: $800-$1,500.
- A bottle of local Korean soju from a convenience store: $3-$6.
- Monthly public transportation pass for buses and subways in Busan: $50-$70.
- A plate of traditional Korean bibimbap at a local eatery: $5-$10.
- Admission to the Busan Aquarium: $10-$15.
- Monthly membership at a Busan-based fitness center or yoga studio: $40-$80.
- Fresh seafood from the Jagalchi Fish Market for a week: $20-$40.
- A cup of local Korean roasted grain tea from a teahouse: $1-$2.
Neighbourhoods and spots
Since we aim to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Busan. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Haeundae | Haeundae is a popular beachside neighborhood in Busan, known for its sandy beaches, upscale hotels, and lively atmosphere. | Beautiful beaches, stunning ocean views, vibrant nightlife, and numerous entertainment options. | Can get crowded with tourists, higher living costs, and traffic congestion during peak seasons. |
Gwangalli | Gwangalli is another coastal neighborhood famous for its scenic Gwangalli Beach, trendy cafes, and the Gwangandaegyo Bridge. | Stunning beach and bridge views, lively beachfront atmosphere, and a variety of dining and entertainment choices. | Crowded during weekends and holidays, limited parking, and noise from nightlife activities. |
Nampo-dong | Nampo-dong is a bustling commercial neighborhood in Busan, featuring numerous shops, street markets, and cultural attractions. | Shopping paradise, diverse food options, cultural landmarks like Jagalchi Fish Market and BIFF Square. | Can be crowded and noisy, limited green spaces, and traffic congestion during peak hours. |
Seomyeon | Seomyeon is a central district in Busan, known as a major commercial and transportation hub with various shopping centers and restaurants. | Excellent shopping facilities, vibrant nightlife, convenient public transportation. | Can be crowded and hectic, limited historical sites and green areas. |
Dongnae | Dongnae is a peaceful neighborhood in Busan, renowned for its hot springs, historic temples, and serene ambiance. | Relaxing hot springs, beautiful temples, quiet and peaceful environment. | Not as many entertainment options, limited public transportation in some areas. |
Seogu (West District) | Seogu, also known as West District, is a residential area with a mix of traditional and modern architecture, offering a quieter living experience. | Residential tranquility, traditional markets, and easy access to parks and green spaces. | Limited nightlife and entertainment, longer commute to central areas. |
Buk-gu (North District) | Buk-gu, or North District, is a diverse neighborhood with cultural sites like Beomeosa Temple and a mix of residential and commercial areas. | Historical temples, local markets, and convenient access to hiking trails. | Some areas may lack modern amenities, traffic congestion during rush hours. |
Dong-gu (East District) | Dong-gu, or East District, is a district with a blend of traditional and modern architecture and includes important landmarks like Busan Station. | Transportation hub, historical sites, and proximity to Busan Station and other amenities. | Some areas may be crowded and noisy, limited green spaces. |
Yeonje-gu | Yeonje-gu is a suburban neighborhood known for its educational institutions, parks, and quieter living environment. | Various schools and universities, abundant parks, and a peaceful residential setting. | May lack the vibrancy and entertainment options of central areas. |
Suyeong-gu | Suyeong-gu is a district with a mix of residential and commercial areas, featuring popular spots like Suyeong Bay and Gwangan Bridge. | Beautiful bay views, proximity to Gwangalli Beach, and a blend of urban and coastal living. | Can be crowded and noisy, limited parking, and traffic congestion during peak times. |
Sasang-gu | Sasang-gu is a district located near Gimhae International Airport, known for its transportation links and local markets. | Convenient transportation, local markets, and proximity to the airport. | Some areas may lack green spaces and recreational facilities. |
Life in Busan
Busan is one of the largest cities in South Korea and is a major port city, making it a major hub for international trade. It is also a major manufacturing center, boasting a large number of industries including shipbuilding, electronics, chemicals, and automotive.
What expats usually like the most in Busan is the city's vibrant food culture, with its abundance of seafood dishes and street food, as well as its stunning beach views and coastal hikes.
A good point for a property investor - Busan has an extensive mass rapid transit system, consisting of two subway lines and several bus routes.
Busan has generally good access to healthcare, with a variety of public and private facilities available.
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Renting out in Busan
If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.
Long-term
Tenant Profiles in Busan
According to the data reported by Wikipedia, the home ownership rate in South Korea is 57%, which is not much.
It means that, if you decide to buy and rent out in Busan, there will be a lot of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target young professionals, expats, and students who are attracted to Busan's vibrant lifestyle and culture. For short-term rentals, you should target tourists, business travelers, and families who are looking for a convenient and affordable place to stay.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Haeundae | Expats, beach enthusiasts | Close to the beach, upscale living | $1,000 - $2,500 |
Studio in Seomyeon | Youth, students | Entertainment, vibrant nightlife | $500 - $1,500 |
2-Bedroom Apartment in Marine City | Families, professionals | Modern amenities, waterfront views | $1,200 - $2,800 |
Villa in Centum City | High-income expats | Luxury living, shopping convenience | $2,500 - $5,000 |
Apartment in Gwangan | Young professionals, artists | Ocean views, creative environment | $800 - $1,800 |
1-Bedroom Flat in Nampo | Shoppers, tourists | Central location, markets | $600 - $1,200 |
Traditional Hanok House in Gamcheon | Cultural enthusiasts, tourists | Historical experience, art district | $400 - $800 |
Rental yields
As of today, rental yields in Busan are quite low, below 2% that's for sure. Among other things, this low performance can be explained by the fact that Busan is a relatively small and expensive city, making it difficult for investors to achieve high rental yields.
Busan's best rental yields tend to be in areas close to the city center, such as Seomyeon, Sasang, Nampo, and Haeundae, due to their proximity to amenities and the high demand for rental properties in these areas. Additionally, properties near universities, such as Pusan National University and Dong-A University, tend to have higher rental yields due to the high demand for student housing.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to students attending universities in Busan, as well as tourists visiting the city for its beaches, hot springs, and cultural sites.
If you decide to go with that option, look for properties in Haeundae, Gwangalli Beach, and Seomyeon. These areas are popular with tourists and have great transport links to the rest of the city.
Currently, there are approximately 7,000 active Airbnb listings in Busan, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $92.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Busan can make around $1300 per month. Also, the average occupancy rate is estimated at 60%.
Is it worth buying real estate in Busan then?
In considering whether to buy a property in Busan, it ultimately boils down to your goals and circumstances. If you plan to make Busan your long-term home and relish the idea of having a stable abode with potential for property value growth, then buying could be a smart move. This approach aligns with Busan's relatively high property price-to-rent ratio, indicating that purchasing property makes more sense when you're in it for the long haul. Plus, the prospect of South Korea's economic growth and stability may drive property prices upward, making it a potentially lucrative investment.
Additionally, Busan's diverse property options and lower cost of living compared to Seoul add to its allure for those seeking an urban lifestyle without breaking the bank.
However, if your stay in Busan is more temporary, buying property may not be the financially savvy choice. Short-term residents could find themselves burdened by hefty transaction costs, including taxes and fees, making renting a more budget-friendly option. Foreign ownership restrictions in certain areas and the intricate property buying process further complicate the path to property ownership for international buyers.
Additionally, Busan's low rental yields, often falling below 2%, might not justify the investment if you're seeking substantial rental income. Lastly, market uncertainties always loom, and without a strong stomach for potential fluctuations, the real estate game in Busan might not be for everyone.
In the end, it's essential to assess your unique situation, weigh the pros and cons, and perhaps consult with local experts to make the right choice when it comes to property ownership in Busan.
Make sure you understand the real estate market in Busan
Don't rush into buying the wrong property in South Korea. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.