How's the real estate market doing in Busan? (2026)

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Yes, the analysis of Busan's property market is included in our pack

How's the real estate market going in Busan in 2026?

What's the average days-on-market in Busan in 2026?

As of early 2026, the estimated average days-on-market for residential apartments in Busan is around 95 days, meaning most standard apartments take about three months to sell from listing to contract.

For typical listings in Busan, the realistic range spans from 60 days for well-priced apartments in desirable districts like Haeundae-gu or Suyeong-gu, up to 150 days or more for older villas or properties in areas with high unsold inventory.

Compared to one or two years ago, Busan's days-on-market has lengthened noticeably because the market shifted from a seller's market to a buyer's market, with transaction volumes still running below 60% of pre-pandemic levels according to recent market analyses.

Are properties selling above or below asking in Busan in 2026?

As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Busan is approximately 97%, meaning most homes sell about 3% below the seller's initial asking price.

Roughly 70% to 75% of Busan properties sell at or below asking price, while only about 25% to 30% achieve full asking or slightly above, and we are reasonably confident in this estimate because Busan's market has been in a 37-month price decline according to recent KB Real Estate data.

The neighborhoods most likely to see competitive bidding and above-asking sales in Busan are premium coastal areas like Haeundae-gu (especially U-dong and Jung-dong near Marine City) and Suyeong-gu (Gwangalli area), where demand from wealthy buyers remains stronger than citywide averages.

By the way, you will find much more detailed data in our property pack covering the real estate market in Busan.

What kinds of residential properties can I realistically buy in Busan?

What property types dominate in Busan right now?

The estimated breakdown of residential property types available for sale in Busan in 2026 is roughly 65% apartments, 20% officetels, 10% villas or multi-family low-rises, and 5% detached homes or other types.

Apartments represent the largest share of Busan's residential market by far, accounting for nearly two-thirds of all listings and the vast majority of transaction volume.

Apartments became so dominant in Busan because South Korea's urbanization patterns since the 1970s favored high-rise construction, and apartments offer standardized quality, easier price comparison through official systems, better financing options, and more predictable resale than heterogeneous housing types.

If you want to know more, you should read our dedicated analyses:

• How much should you pay for an apartment in Busan?

Are new builds widely available in Busan right now?

The estimated share of new-build properties among all residential listings in Busan is approximately 15% to 20%, though availability varies sharply by district, with some areas facing significant unsold inventory while others have limited new supply.

As of early 2026, the neighborhoods with the highest concentration of new-build developments in Busan include Gangseo-gu (especially Myeongji-dong and the Eco Delta City area), parts of Haeundae-gu near Centum City, and Gijang-gun, where recent construction activity has been strongest.

Which neighborhoods are improving fastest in Busan in 2026?

Which areas in Busan are gentrifying in 2026?

As of early 2026, the top neighborhoods in Busan showing the clearest signs of gentrification include Jeonpo-dong in Busanjin-gu (driven by cafe culture and retail energy), Nampo-dong and Gwangbok-dong in Jung-gu (benefiting from North Port redevelopment proximity), and parts of Yeongdo-gu along the coastal cultural corridor.

The visible changes indicating gentrification in these Busan areas include the arrival of specialty coffee shops and boutique retail replacing traditional stores, building facade renovations, an influx of younger residents and creative businesses, and rising foot traffic around newly developed waterfront promenades.

The estimated price appreciation in these gentrifying Busan neighborhoods over the past two to three years has ranged from 5% to 15%, though this varies block by block, and many areas have seen slower growth recently due to the broader market correction.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Busan.

Where are infrastructure projects boosting demand in Busan in 2026?

As of early 2026, the top areas in Busan where major infrastructure projects are boosting housing demand include Gangseo-gu (linked to Gadeokdo New Airport and the Eco Delta City development), Jung-gu and Dong-gu (tied to North Port Redevelopment), and corridors along the planned Busan Express Transit (BuTX) route.

The specific infrastructure projects driving demand in Busan include the Gadeokdo New Airport construction, the North Port waterfront redevelopment, the Gangseo Metro Line, the Busan Express Transit connecting major hubs, and the Centum District 2 development near Haeundae.

The estimated timeline for completion of these major Busan infrastructure projects ranges from 2026 for some metro line segments to 2035 for the Gadeokdo New Airport, which was recently delayed from its original 2029 target date.

The typical price impact on nearby Busan properties is roughly 5% to 10% appreciation when a major project is announced, with an additional 10% to 20% potential gain upon completion, though this depends heavily on execution and whether the project meets its promised timeline.

What do locals and insiders say the market feels like in Busan?

Do people think homes are overpriced in Busan in 2026?

As of early 2026, the general sentiment among locals and market insiders is that Busan homes are "selectively expensive," meaning premium coastal districts feel pricey relative to local incomes while much of the city feels more negotiable and buyer-friendly than Seoul.

The specific evidence locals cite when arguing Busan homes are overpriced includes the price gap between top-tier apartments (averaging around 825 million won) and bottom-tier units (around 130 million won), which has reached a 6.3x ratio, the highest among Korea's metropolitan cities.

Those who believe Busan prices are fair point to the city's improving infrastructure, its status as Korea's second-largest city with a major port, its tourism appeal, and the fact that Busan remains significantly cheaper than Seoul, where average apartment prices now exceed 1 billion won.

Busan's price-to-income ratio is high by global standards but remains lower than Seoul's, which now exceeds price-to-income levels seen in London or Sydney, making Busan relatively more accessible for middle-income buyers within the Korean context.

What are common buyer mistakes people regret in Busan right now?

The most frequently cited buyer mistake in Busan is overpaying for "ocean view" apartments without checking for wind exposure, salt corrosion, seasonal humidity, and mold risk, which are serious issues in coastal high-rises that brochures never mention.

The second most common mistake buyers regret in Busan is assuming every redevelopment story will pay off quickly, because projects like the Gadeokdo New Airport have already been delayed (now targeting 2035 instead of 2029), and buyers who paid premium prices based on optimistic timelines are now stuck waiting.

If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Busan.

It's because of these mistakes that we have decided to build our pack covering the property buying process in Busan.

How easy is it for foreigners to buy in Busan in 2026?

Do foreigners face extra challenges in Busan right now?

The estimated overall difficulty level for foreigners buying property in Busan is moderate, meaning the process is legally straightforward (foreigners can buy with the same rights as locals in Busan, unlike Seoul which now requires permits) but practically more complicated due to paperwork and banking requirements.

The specific legal requirement for foreign buyers in Busan is that you must report your land acquisition to the local district office within 60 days of signing the contract, as specified under Korea's Foreigner's Land Acquisition Act, but you do not need pre-approval or a permit for Busan purchases.

The practical challenges foreigners most commonly encounter in Busan include opening a Korean bank account without an Alien Registration Card, proving source of funds for international transfers, navigating all-Korean contract documents, and understanding the jeonse deposit system if buying a tenanted property.

We will tell you more in our blog article about foreigner property ownership in Busan.

Do banks lend to foreigners in Busan in 2026?

As of early 2026, mortgage financing is available to foreigners in Busan, but approval is more selective than for Korean nationals, and many foreign buyers find it easier to plan for cash purchases or larger down payments.

The typical loan-to-value ratios foreign buyers can expect in Busan range from 40% to 60% (compared to up to 70% or more for qualified Korean first-home buyers), and interest rates for foreigners typically fall between 3.8% and 5.2% depending on income stability and visa status.

The documentation banks typically demand from foreign applicants in Busan includes an Alien Registration Card, proof of Korean-source income or stable employment in Korea, passport copies, visa documentation, and often notarized proof of overseas assets or income if local income is insufficient.

You can also read our latest update about mortgage and interest rates in South Korea.

How risky is buying in Busan compared to other nearby markets?

Is Busan more volatile than nearby places in 2026?

As of early 2026, Busan's price volatility is lower than Seoul's policy-driven swings but higher than smaller cities like Ulsan or Changwon, positioning Busan as a middle-ground market that is more sensitive to local supply cycles than to national speculation waves.

Over the past decade, Busan has experienced notable price swings including a sharp run-up through 2021-2022 when coastal areas like Haeundae saw gains of over 70%, followed by a sustained correction of roughly 15% to 20% from peak levels, while Seoul's corrections were shallower and recovery faster.

If you want to go into more details, we also have a blog article detailing the updated housing prices in Busan.

Is Busan resilient during downturns historically?

Busan's historical resilience during economic downturns is moderate, meaning the city tends to decline more than Seoul during corrections but also recovers, though recovery can take longer in weaker districts.

During the most recent major downturn (2022-2025), Busan property prices dropped approximately 15% to 20% from their peak, and as of early 2026 the market has not fully recovered, with prices still about 2% lower year-on-year and many analysts expecting stabilization only by late 2026 in premium areas.

The property types and neighborhoods in Busan that have historically held value best during downturns include apartments in Haeundae-gu (especially near Centum City and Marine City), well-located units in Suyeong-gu near Gwangalli Beach, and areas with strong school districts like parts of Dongnae-gu.

How strong is rental demand behind the scenes in Busan in 2026?

Is long-term rental demand growing in Busan in 2026?

As of early 2026, long-term rental demand in Busan is stable but not strongly growing, with structural shifts away from the traditional jeonse (large deposit) system toward monthly rent arrangements putting pressure on both landlords and tenants.

The tenant demographics driving long-term rental demand in Busan include young professionals in their 30s working in the Centum City business district, university students near campuses in areas like Geumjeong-gu, families priced out of homeownership, and a small but steady flow of domestic migrants from other regions.

The neighborhoods in Busan with the strongest long-term rental demand right now include Haeundae-gu (near Centum City offices), Busanjin-gu (central location and transit access), Suyeong-gu (lifestyle appeal), and areas near major universities.

You might want to check our latest analysis about rental yields in Busan.

Is short-term rental demand growing in Busan in 2026?

Short-term rental regulations in Busan remain less restrictive than in some other Korean cities, but operators must still comply with local accommodation business registration requirements, and enforcement has tightened in residential-zoned buildings in recent years.

As of early 2026, short-term rental demand in Busan is growing moderately, driven by the city's recovery as a major tourism destination and its ongoing promotion as a cultural and film festival hub.

The estimated average occupancy rate for well-managed short-term rentals in Busan's prime tourist areas is approximately 55% to 65% annually, with strong seasonal peaks during summer beach season, the Busan International Film Festival in October, and holiday periods.

The guest demographics driving short-term rental demand in Busan include domestic Korean tourists (the largest segment), East Asian visitors from Japan, China, and Taiwan, a growing number of Western tourists attracted to K-culture, and some business travelers attending conventions.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Busan.

What are the realistic short-term and long-term projections for Busan in 2026?

What's the 12-month outlook for demand in Busan in 2026?

As of early 2026, the 12-month demand outlook for residential property in Busan is stable-to-slightly-firmer in premium districts like Haeundae-gu and Suyeong-gu, while remaining flat or soft in areas with oversupply concerns.

The key factors most likely to influence Busan housing demand over the next 12 months include Bank of Korea interest rate decisions (currently holding at 2.50%), the pace of unsold inventory absorption, domestic economic growth (projected at 1.8% for 2026), and whether Seoul's overheated market pushes any buyers to consider regional alternatives.

The forecasted price movement for Busan over the next 12 months is approximately flat to down 2% citywide, with premium coastal districts potentially stabilizing or seeing modest 1% to 2% gains while weaker western districts could decline another 3% to 5%.

By the way, we also have an update regarding price forecasts in South Korea.

What's the 3-5 year outlook for housing in Busan in 2026?

As of early 2026, the 3-5 year outlook for Busan housing is modest and uneven growth, with prices potentially rising 10% to 20% in the strongest districts over five years while weaker areas may struggle to recover to previous peaks.

The major development projects expected to shape Busan over the next 3-5 years include the Gadeokdo New Airport (now targeting 2035), continued North Port Redevelopment phases, the Busan Express Transit (BuTX) rail network expansion, Eco Delta City completion in Gangseo-gu, and the Centum District 2 development.

The single biggest uncertainty that could alter Busan's 3-5 year outlook is whether the Gadeokdo New Airport project stays on its revised timeline or faces further delays, because this mega-project underpins much of the speculative premium currently priced into western Busan neighborhoods.

Are demographics or other trends pushing prices up in Busan in 2026?

As of early 2026, demographics are not strongly pushing prices up in Busan overall because the city's population growth is minimal (around 0.2% annually) and the population is aging, though demand is being concentrated into the most desirable districts.

The specific demographic shifts most affecting Busan prices include slow population growth, an aging resident base, outmigration of young people to Seoul, but also some return migration of retirees seeking coastal lifestyle and lower costs than the capital.

The non-demographic trends also pushing prices in Busan include tourism recovery driving short-term rental investment interest, infrastructure-led speculation in Gangseo-gu, lifestyle preferences for coastal living post-pandemic, and some spillover from buyers priced out of Seoul looking for second-tier city alternatives.

These demographic and trend-driven pressures are expected to continue for at least the next 5-10 years in Busan, with the concentration effect likely strengthening, meaning premium districts will see sustained demand while weaker areas face structural headwinds.

What scenario would cause a downturn in Busan in 2026?

As of early 2026, the most likely scenario that could trigger a housing downturn in Busan would be a combination of interest rate increases by the Bank of Korea, a renewed surge in unsold inventory, and a credibility shock to major infrastructure projects like the Gadeokdo New Airport.

The early warning signs that would indicate such a downturn is beginning in Busan include unsold inventory rising back above 5,000 units, transaction volumes dropping further below current levels, price declines accelerating beyond 3% year-on-year, and major developers pulling back from new project launches in the city.

Based on historical patterns, a potential downturn in Busan could realistically see prices decline 10% to 15% from current levels in a moderate stress scenario, with weaker districts like parts of Sasang-gu or Saha-gu potentially falling further, while premium Haeundae and Suyeong areas might only see 5% to 8% drops.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Busan, we always rely on the strongest methodology we can, and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.