Authored by the expert who managed and guided the team behind the South Korea Property Pack
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What will happen in Busan’s real estate market? Will prices go up or down? Is Haeundae still a hotspot for foreign investors? How is South Korea’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, developers, and clients who buy properties in Busan, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Property prices in Busan's suburbs will drop moderately as urban living gains popularity
In Busan, urban living is becoming increasingly popular.
People are flocking to the city center, especially to places like Haeundae-gu and Suyeong-gu, where property prices have surged by over 65% since 2019. These areas are hot spots because they offer a lively urban lifestyle with plenty of amenities.
Meanwhile, the suburbs are not doing as well. The construction industry in South Korea is expected to shrink, with a 3.4% contraction in 2024 and a 1.4% dip in 2025. This means fewer new homes and slower growth in suburban property sales.
Government efforts are also leaning towards urban areas. They're investing in sectors like semiconductors and renewable energy, which will likely improve city infrastructure and public transport. This makes city life even more attractive, potentially leading to a moderate decline in suburban property prices.
With these changes, urban centers are set to thrive, while the suburbs might lag behind. The focus on urban development is clear, and it's shaping where people want to live.
Sources: World Population Review, MK Real Estate, Business Wire
3) More foreign investors will enter Busan’s real estate market because of favorable exchange rates
The number of foreign investors in Busan's real estate market is steadily increasing due to favorable exchange rates.
In December 2024, the exchange rate was 1444.52 KRW/USD, making it cheaper for foreign buyers to invest in South Korean properties. This shift in currency value has made Busan an attractive option for those looking to capitalize on their investments.
Busan is not just about affordability; it's also about potential. The city is experiencing significant growth in foreign-owned housing, especially in metropolitan areas. This trend suggests that Busan is becoming a real estate hotspot, drawing attention from international investors.
Looking ahead, the real estate market in South Korea, including Busan, is expected to see a modest recovery in sectors like logistics and office spaces by 2025. This recovery is driven by lower borrowing costs and increased lender confidence, making it a prime time for foreign investors to dive in.
Under the Yoon Suk Yeol administration, regulations are being put in place to curb speculative housing transactions by foreigners. This move aims to create a more stable and attractive market for genuine foreign investors, ensuring that the market remains healthy and sustainable.
Busan's ongoing economic development projects and competitive property prices compared to other major cities make it a promising destination for foreign investment. The city's strategic location and growth potential are hard to ignore for savvy investors.
Sources: YCharts, Business Korea, DWS Group, MK Real Estate
6) High-rise apartment prices in Busan will rise as demand continues to grow
Busan is becoming a hotspot as more people flock to the city for jobs and a vibrant lifestyle.
With its bustling economy and international appeal, Busan's real estate market is drawing attention from both local and global investors. High-rise apartments are particularly in demand, seen as a smart investment choice.
Thanks to government efforts like expanding the Busan Metro, getting around the city is easier than ever. This boost in connectivity makes high-rise living even more attractive for both residents and investors.
In Busan, land is a precious commodity. The city's high population density means land is scarce, pushing people towards high-rise apartments that offer modern comforts and easy access to the city.
High-rise apartments in Busan are not just about living space; they offer a lifestyle. These buildings come with amenities that cater to modern needs, making them a top choice for those seeking convenience and luxury.
As Busan continues to grow, the demand for high-rise apartments is expected to keep climbing, driving prices up and making them a valuable asset.
Sources: World Population Review, Wikipedia
7) Coastal property prices in the city will rise significantly as climate change awareness increases
People are increasingly aware of climate change's impact on real estate, especially in coastal areas.
In Busan, there's a noticeable shift towards properties that can withstand climate challenges. Buyers are keen on tech-smart, energy-efficient apartments and larger homes with outdoor spaces. This trend is partly due to the rise in remote work and a growing desire for sustainable living.
The government is stepping up with initiatives like building seawalls and restoring mangroves to combat climate change effects. These efforts not only protect the city but also make coastal properties more appealing and valuable.
As climate awareness grows, coastal properties in Busan are expected to see a significant price increase. This is because people are looking for homes that offer both safety and sustainability.
Investing in these areas now could be a smart move, as the demand for climate-resilient homes is only going to rise. The combination of government action and buyer interest is creating a perfect storm for property value appreciation in coastal regions.
With these changes, Busan is becoming a hotspot for those seeking a blend of modern living and environmental consciousness. The city's proactive stance on climate issues is making it a desirable place to invest in real estate.
Sources: MK Real Estate, APEC, World Economic Forum
8) Property prices in Sasang will rise due to better transportation links
The Sasang area is poised for a property price surge due to enhanced transportation links.
One of the main drivers is the Sasang-Haeundae Expressway project, which has garnered strong support from both the central and Busan City governments. This initiative is set to alleviate traffic congestion and boost accessibility, making Sasang more appealing to residents and businesses alike.
We've seen this trend before in Busan. When Line 1 was extended from Shinpyeong to Dadaepo Beach, it improved connectivity in the Saha-gu area, which likely led to a rise in property values. This pattern indicates that Sasang could see a similar uptick in property prices as its transportation network gets better.
Additionally, the Busan-Gimhae Light Rail Transit has already linked Busan to Gimhae, which is likely increasing demand for properties near these new transport hubs. The convenience of easy access to both cities is a big draw for potential residents and businesses, making these areas more desirable.
For those considering buying property in Sasang, it's worth noting that improved transport links often lead to increased property demand. This is especially true in areas where new infrastructure projects are underway, as they tend to attract more interest from both local and international buyers.
As Sasang's transportation infrastructure continues to develop, the area is expected to become even more attractive. This could lead to a further rise in property prices, making it a potentially lucrative investment opportunity.
Sources: Breeze In Flow, Wikipedia
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Suburban rental yields will drop as more people choose city center living
In Busan, more people are choosing to live closer to the city center.
City center property prices are climbing, with expectations of a 3% to 7% increase by 2025. This surge is driven by high demand and exciting projects like the North Port Redevelopment and improved public transport, making urban living more appealing.
Younger folks are leaning towards urban lifestyles, craving proximity to cultural hotspots and job opportunities. Surveys highlight their preference for shorter commutes, which city center living offers.
With demand for city center properties outstripping supply, suburban areas might face a dip in rental demand. This shift could lead to higher vacancy rates in the suburbs.
As more people flock to the city center, suburban rental yields are likely to decline. The allure of city life is reshaping the real estate landscape.
These trends are reshaping where people want to live, with urban areas becoming the preferred choice for many.
10) Demand for senior-friendly housing in Busan will grow as the population ages
Busan is seeing a notable rise in its elderly population, with expectations to become a super-aged society by 2025.
As people in South Korea are living longer, with an average life expectancy of 83.5 years, there's a growing need for homes that are both accessible and comfortable for seniors. This shift is underscored by government reports emphasizing the necessity for senior-friendly infrastructure as the country braces for over 20% of its population to be aged 65 or older by 2025.
Many seniors in Busan prefer to live independently, with 78.2% residing in single households. This highlights a strong desire for housing that supports their independence while ensuring safety and convenience. The high occupancy rates of existing senior housing, which exceed 90%, show that the current supply is struggling to meet the demand.
In Busan, the demand for senior-friendly housing is driven by the city's aging population, which is expected to grow significantly in the coming years. This trend is creating a unique opportunity for property investors to tap into a market that is increasingly focused on senior needs.
With the current housing options not keeping pace with demand, there's a clear need for more developments that cater specifically to seniors. This includes features like easy accessibility, safety measures, and community spaces that encourage social interaction among residents.
Sources: Statistics Korea, Yonhap News Agency, Savills Asia, NIC MAP Vision
11) Property values in Seomyeon will drop as commercial activities reduce residential appeal
Seomyeon is rapidly evolving into a commercial hotspot, leaving its residential charm behind.
With new office buildings and retail spaces popping up, the area is buzzing with business activity. This transformation is pushing up rental prices for commercial properties, signaling a strong market for businesses. However, this shift means Seomyeon is becoming less appealing for those looking to buy a home.
As more companies set up shop in Seomyeon, residential property sales are taking a hit. The influx of businesses brings with it noise and congestion, which isn't ideal for people seeking a quiet place to live. Many residents have voiced their dissatisfaction, pointing out that the once peaceful neighborhood is now overshadowed by commercial hustle and bustle.
The local government is actively promoting Seomyeon as a business hub, prioritizing commercial growth over residential development. This strategic push is evident in their plans, which focus on attracting more businesses rather than enhancing residential life. Media outlets have picked up on this trend, highlighting how investors are flocking to the area to capitalize on its growing popularity.
For those considering buying property in Seomyeon, it's crucial to understand that the area's residential appeal is dwindling. The focus on commercial expansion is reshaping the neighborhood, making it more suitable for business than for living. This shift is something potential buyers should keep in mind when weighing their options.
Seomyeon's transformation is a clear example of how commercial interests can redefine a neighborhood, turning it into a bustling business district at the expense of its residential allure.
Source: MK Economy
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12) Busan’s rental market will grow as more young professionals opt to rent instead of buy
The rental market in Busan is heating up as more people opt to rent rather than buy.
In 2023, housing transactions in Busan jumped from about 54,000 to around 59,000, showing a clear shift in the market. This change is partly because young professionals are flocking to Busan for its booming job market. The city is a hub for industries like shipping, logistics, IT, and finance, making it a magnet for career-driven individuals.
These young professionals often prefer renting over buying, valuing the flexibility it offers. High property prices in Busan make purchasing a home a daunting task for many. This is a common scenario in bustling urban areas where real estate prices are sky-high.
As a result, the rental market is becoming the go-to option for many. The trend is clear: more young people are choosing to rent as buying remains out of reach. This shift is not just about affordability but also about lifestyle choices that prioritize mobility and convenience.
Busan's appeal doesn't stop at job opportunities. The city offers a vibrant lifestyle with its beaches, cultural events, and nightlife, making it an attractive place to live. Renting allows newcomers to enjoy all these perks without the long-term commitment of buying a property.
With the rental market on the rise, landlords and property investors are likely to see increased demand. This trend is expected to continue as more young professionals settle in Busan, further boosting the rental sector.
Sources: Expat Arrivals, Illume PM, Statista
13) Demand for community-focused living spaces will grow as people look for stronger social ties
In Busan, the co-living trend is gaining momentum as people seek more than just a roof over their heads.
Young professionals and the younger generation are driving this shift, looking for places that offer social interaction and community events. It's not just about having a private space anymore; it's about being part of a community.
In 2023, Busan experienced a surge in housing transactions, with 59,000 deals made. This uptick reflects a growing interest in homes that come with shared amenities, where residents can enjoy communal spaces and connect with others.
Consumer surveys reveal a strong desire for deeper social connections and community living. The OECD found that while many in Korea want larger families, the reality is different, hinting at unmet social needs that community-focused living can fulfill.
These insights suggest that people are increasingly drawn to living arrangements that foster stronger social ties. Co-living spaces are stepping in to meet this demand, offering environments where residents can build meaningful relationships.
As the demand for community-focused living spaces rises, it's clear that people are prioritizing social connections over mere privacy. This trend is reshaping how we think about housing and community in urban areas like Busan.
Sources: Statista, JLL Macau, OECD
14) Demand for homes near international schools will rise as more foreign families move in
Busan's international schools are becoming a magnet for foreign families seeking quality education.
Take the Busan Foreign School, for example, where the student-to-teacher ratio is impressively low, ensuring personalized attention and a high graduation rate. Almost all students from this school continue to higher education, making it a top choice for families considering relocation.
The city isn't stopping there; it's actively expanding its international school scene. New institutions like the Royal Russell School from England are on the horizon, following a trend seen in places like Jeju Island. Here, international school enrollment has been steadily increasing, signaling a strong interest from foreign families in areas with excellent educational options.
Busan's expatriate population is on the rise, mirroring a national trend. This influx of foreign residents naturally boosts the demand for housing, especially near international schools. The economic impact of these schools is significant, as seen in other regions, and Busan is likely to experience similar increases in property demand and value.
With more international schools opening, the city's appeal to foreign families will only grow. This trend is expected to drive up demand for residential properties in areas close to these educational institutions.
In essence, the presence of international schools in Busan is not just about education; it's a catalyst for increased property interest and investment in the city.
Sources: Growth of International Schools in Korea, Busan Foreign School Statistics, Number of Registered Foreigners in Busan
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.
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.