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
Are you considering investing in Busan's real estate market? Curious about the emerging trends that could shape your property decisions in 2025? Want to know which areas are set to boom and which might cool down?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the South Korea Property Pack
1) Foreign investors target high-demand short-term rental areas
Foreign investors are eyeing areas with strong rental demand for short-term stays, and Busan is catching their attention.
In Busan, short-term rentals are thriving. A typical listing is booked for 223 nights a year, with a 61% occupancy rate and an average daily rate of KRW101,903. This shows a bustling market for short-term stays.
Tourism is booming in Busan, with a 216% increase in visitors by 2022. A total of 482,000 tourists chose Busan as their destination, highlighting the need for more short-term accommodations.
Airbnb and similar platforms are expanding rapidly in Busan. As of September 12, 2024, there are 7,997 active Airbnb listings in the city. This growth points to high demand and potential profits for investors.
Sources: Airbtics, Statista, GoWithGuide
2) Easing property rules for foreigners will boost international investments in Busan real estate
In 2023 and 2024, foreign property ownership in South Korea saw a noticeable increase, especially in Busan.
By June 2023, foreigners owned 95,058 housing units in the country, marking a 3.9% rise from just six months earlier. This uptick shows a growing interest from international buyers, with Chinese and American nationals leading the charge. The South Korean government has been actively promoting foreign investment in real estate, which has played a crucial role in encouraging legitimate investments.
The Ministry of Land, Infrastructure and Transport has been instrumental in this effort by publishing statistics on foreign ownership. This move helped regulate speculative transactions, making the market more attractive to international investors. The regulatory environment, combined with eased property purchase regulations, has created a favorable climate for foreign investments.
Economic reports from that period linked these regulatory changes to a surge in foreign capital inflow. For instance, the outstanding balance of housing mortgage loans for foreigners offered by major commercial banks increased by 3.3% from the previous year. This increase in mortgage loans is a clear indicator of heightened foreign direct investment in the real estate sector.
In Busan, the local government has been offering various incentives to attract foreign investors, making it a hotspot for international property buyers. The city's strategic location and vibrant economy have made it particularly appealing. The easing of property purchase regulations for foreigners is expected to lead to a rise in international investments, as more people look to take advantage of these opportunities.
Sources: Korea Times, Business Korea, Busan Go
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3) Rents in tourist hotspots will rise due to growing short-term rental demand
In Busan, South Korea, short-term rental bookings have skyrocketed in 2023 and 2024.
With 132,300 Airbnb nights booked in May 2024, it's clear that more people are choosing short-term rentals. This trend is fueled by the city's booming tourism, as Busan welcomed over 1.8 million foreign visitors in 2023, marking a huge increase from the previous year.
Tourists are flocking to Busan, and they need places to stay. The typical short-term rental in Busan is booked for 223 nights a year, showing just how popular these accommodations have become. Visitors love the convenience and personal touch that short-term rentals offer.
As more tourists explore Busan, the demand for short-term rentals continues to grow. This is evident in the 61% median occupancy rate for these properties, indicating that they are a preferred choice for many travelers.
With the rise in tourism, property owners in Busan are seeing the benefits of offering short-term rentals. The increase in bookings and occupancy rates suggests that rents in popular tourist areas are likely to rise as demand grows.
Sources: Statista, GlobeNewswire, Airbtics
4) Suburban houses will lose appeal as people prioritize convenience and location
In Busan, urban living is becoming the new norm.
With property prices soaring in central spots like Centum City and Yeongdo, these areas are now more appealing than the suburbs. This shift is driven by strategic developments and a high demand for urban living, making these locations hot spots for potential buyers.
There's a growing interest in tech-savvy, energy-efficient apartments and smaller homes in the city. Remote work and sustainability trends are fueling this demand, especially among young professionals and tech workers. These modern homes are becoming the must-have properties of 2025.
People are increasingly valuing convenience and location, with urban areas offering improved public transport and amenities. Yeongdo's expanded public transportation and new mixed-use developments are prime examples of this trend, making city life more attractive.
Consumer surveys highlight that convenience is a top priority for many buyers. The ease of access to work, leisure, and essential services in urban centers is a significant draw, shifting preferences away from large suburban houses.
As more people prioritize these factors, the appeal of suburban living is waning. The focus is now on the benefits of city life, where everything is within reach, and the lifestyle is more dynamic.
Sources: Busan Price Forecasts, Housing Trends of the Future, Busan Which Area
5) Student influx will drive up demand for affordable housing near universities
Busan is experiencing a surge in student numbers, which is set to increase the demand for affordable housing near universities.
With universities like Pusan National University aiming to attract more international students, the city is becoming a hub for global education. As of 2020, Pusan National University already had 33,500 international students, and the city plans to bring in 30,000 more by 2028. This influx means more students will be looking for places to live, especially close to their campuses.
Student housing projects are popping up everywhere, and the 2024–2025 leasing season is moving fast. By February 2024, 61% of beds were already preleased, which is quicker than the average over the past five years. This shows that students are keen to lock in their housing early, pushing the demand for affordable options even higher.
But here's the catch: there's a shortage of affordable housing for students. The average rent per bed jumped by 5.2% to $883 in February 2024, highlighting the gap between demand and supply. This shortage is even more pronounced with double-digit rent growth in many areas, making it tough for students to find budget-friendly housing.
For those considering investing in property, this trend is a golden opportunity. With the student population on the rise, investing in affordable housing near universities could be a smart move. The demand is there, and it's only going to grow as more students flock to Busan for their studies.
Sources: Korea JoongAng Daily, BDC Network, Pusan National University
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6) High-rise apartments will dominate due to scarce land in central Busan
In Busan, high-rise apartments are becoming increasingly popular as a solution to the city's housing needs.
With a jump in apartment purchases from about 19,000 in 2022 to around 27,000 in 2023, the demand for housing is clearly on the rise. High-rise buildings are perfect for this because they can fit more people into less space, making them a smart choice for urban living.
Land prices in central Busan are climbing, according to the Korea Land Price Index, which means land is getting scarcer and more expensive. This makes building upwards, rather than outwards, a practical option. The government also supports this with zoning policies that encourage vertical development, making high-rises a favored choice.
New land for development in central Busan is becoming rare, with land transactions dropping from about 150,000 in 2022 to around 87.5 thousand in 2022. This scarcity pushes the trend towards high-rise construction, as it's a smart way to use limited space. As more people move to urban areas, these tall buildings help accommodate the growing population without needing more land.
High-rise apartments are not just a trend; they're a necessity in a city where space is at a premium. They offer a practical solution to the challenges of urban living, providing homes for many without expanding the city's footprint.
In Busan, the shift towards high-rise living is a response to both economic and spatial constraints, making it a logical choice for future development. As land becomes more valuable, these towering structures will likely continue to rise, shaping the city's skyline.
Sources: Statista, CEIC Data, NAAHQ
7) New tax incentives will boost eco-friendly building and drive sustainable residential development in Busan
Busan is rolling out new tax incentives to boost eco-friendly building projects.
The city is pushing for low carbon, green growth through various policies. One key policy, Article 11 of the Framework Ordinance, focuses on green technology and industries, which includes eco-friendly buildings. This is part of Busan's broader strategy to promote sustainable living.
The Busan EDC project is a prime example of this initiative. It's a smart city project that features zero-energy homes and smart systems. These homes have achieved an impressive energy independence rate of 107% thanks to solar panels and hydrothermal energy, significantly cutting down carbon emissions.
Within this project, the Smart Village stands out as a successful model of eco-friendly living. It's constantly evolving based on user feedback, showing its effectiveness in promoting sustainability. The city is considering tax cuts for green tech enterprises to further support these initiatives, as outlined in Article 11.
Sources: Busan Metropolitan Government, Wilo
8) Stricter building codes ensure higher quality and more expensive residential properties
Stricter building codes mean better quality homes because builders must follow tougher standards.
These standards often include improved safety measures and better materials, making homes not just safer but also more durable. For instance, buildings that follow the latest codes can avoid losses of about $1.6 billion annually, according to FEMA. This shows that homes built under these codes are more resilient to disasters.
But there's a catch: construction costs can rise due to these stricter codes. Take Busan, where Hyundai Engineering & Construction had to ask for more money to cover the costs of meeting new regulations. This often means that buyers end up paying more for these upgraded homes.
Interestingly, homes built under these codes can also see a boost in value. In California, the 2025 Building Energy Efficiency Standards aim to make homes more energy-efficient, which can make them more attractive to buyers. People are often willing to pay a premium for homes that are not only safer but also more energy-efficient.
In many cases, the demand for these high-quality homes remains strong despite the higher price tags. Buyers recognize the long-term benefits of living in a home that meets these rigorous standards, from lower energy bills to increased safety. This trend is evident in various markets where energy-efficient homes are in high demand.
Sources: CRS Reports, MK Real Estate, California Energy Commission
Everything you need to know is included in our Property Pack for Busan
9) Property tax changes will alter investment strategies in specific districts
Changes in property tax regulations can shake up how investors approach buying property in certain areas.
When tax rates shift, it directly impacts the cost of owning a property, making some areas more or less appealing for investment. Take Busan, South Korea, for instance, where property tax rates range from 0.15% to 0.50% depending on the location and type of building. This variability can make a big difference in investment decisions.
Previously, the government tried to curb speculation by proposing to raise the property tax base in certain hot spots. The idea was to close the gap between reported and market values of homes, which had been a big issue. These changes can scare off investors due to the increased tax burden, pushing them to look for better deals in areas with friendlier tax rates.
On the flip side, the government has also been working to make things easier for investors. They've announced plans to extend deadlines for multiple homeowners, helping them avoid heavier capital gains tax when selling in speculative districts. This policy, which started in 2022 and runs through 2024, aims to stabilize the property market and make investing less of a financial headache.
These tax tweaks are part of a broader strategy to balance the market and keep it attractive for investors. By reducing the financial load, the government hopes to encourage more investment, even in areas previously seen as risky due to high taxes.
For anyone looking to invest in property, keeping an eye on these tax changes is crucial. They can significantly alter the landscape, making some districts more appealing while others become less so.
Sources: Global Property Guide, Kim & Chang, Yonhap News Agency
10) Remote work trends boost demand for homes with office spaces
In South Korea, remote work has become a major part of work culture in recent years.
Even though there was a slight dip in remote workers in 2024, South Korea still ranks 17th in the Global Remote Work Index, showing it's well-prepared for remote work setups. This means the country is equipped with the necessary infrastructure and technology to support people working from home.
Interestingly, 82% of remote workers in South Korea prefer working from home, and they really want dedicated home offices. This trend is pushing the demand for homes that can offer such spaces, making them more attractive to buyers.
In places like Busan, homes with dedicated office spaces are becoming hot property. People are looking for homes that not only provide a roof over their heads but also a comfortable and functional workspace.
Moreover, the home office furniture market is on the rise, with projections showing it could hit US$627.40 million by 2029. This growth is driven by the need for comfortable and efficient workspaces at home.
Media and social media are buzzing about the importance of having a dedicated home office, often showcasing beautifully designed spaces that boost productivity and comfort.
Sources: Statista, Statista, Pumble, Korea Times
11) Rising single-person households will boost demand for smaller living spaces in Busan
In Busan, the number of single-person households has been rising steadily.
Back in 2022, there were 533,000 single-person households, making up a large chunk of the city's total households. This isn't just a local trend; it's part of a bigger demographic shift happening all over South Korea. As more people opt to live alone, they're naturally leaning towards smaller, more manageable living spaces.
Many are snapping up smaller apartments and studio units, not just in Busan but across the country. Take Daejeon, for instance, which in 2023 had the highest percentage of single-person households in South Korea. This suggests a national trend that likely applies to Busan too.
What's driving this shift? Lifestyle changes are a big factor. Single-person households often want convenience and easy access to urban amenities, which smaller living spaces can provide. This ties in with the growing trend of urban living and minimalism, where efficient use of space is highly valued.
Architectural trends are catching on, focusing on designs that maximize space without losing comfort and functionality. This means more clever storage solutions and multi-purpose furniture, making small spaces feel bigger and more livable.
So, if you're thinking about buying property in Busan, consider this: the demand for smaller living spaces is on the rise, driven by the growing number of single-person households. It's a trend that's reshaping the housing market, offering opportunities for both buyers and investors.
Sources: Korea Herald, Statista, YouTube
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12) Aging population boosts demand for senior-friendly housing options in Busan
South Korea is on the brink of becoming a "super-aged society" by 2025.
In cities like Busan, the population aged 65 and over has been steadily rising, making up 18.4% of the total population back in 2023. This shift is not just a statistic; it's reshaping the housing market. As people live longer, thanks to improved healthcare and lifestyle, there's a growing need for homes that cater specifically to seniors. Imagine living in a place where everything is designed with your comfort and safety in mind.
By 2021, the remaining life expectancy at age 65 was 21.6 years, and it's expected to increase, especially for women. This means seniors will need suitable living arrangements for a longer period of their lives. The demand for senior-friendly housing is not just about having a roof over one's head; it's about creating a community where older adults can thrive.
Surveys reveal that older adults, particularly those who are healthy and have higher incomes, are on the lookout for homes that offer personal care, social services, and security. They want the benefits of a supportive environment without the hassle of maintaining a traditional home. This preference is driving the demand for housing options that can meet these needs, making it a lucrative market for potential investors.
In South Korea, the trend is clear: as the population ages, the demand for senior-friendly housing will only grow. This is an opportunity for those looking to invest in real estate to tap into a market that is not only expanding but also evolving to meet the needs of its residents. The focus is on creating spaces that offer more than just accommodation; they provide a lifestyle.
Sources: Yonhap News Agency, JLL Philippines, Emerald Group Publishing Limited
13) Smart home technology will drive sales in new residential developments
In Busan, smart home technology is a major draw for new residential developments.
South Korea is seeing a surge in smart home device adoption, with the market expected to hit USD 11.52 billion by 2029. This boom is fueled by a growing desire for homes that are energy-efficient and automated, which many now consider essential for modern living.
Back in 2023 and 2024, there was a clear shift in what buyers wanted. They were increasingly drawn to homes with integrated technology, seeking convenience, better security, and energy savings. The ability to control everything from a smartphone, combined with widespread internet access, has made smart homes more attractive and accessible.
The South Korean government has been a big supporter of this trend. Their "infrastructure-first" strategy for digital transformation has paved the way for innovation. Initiatives like the "Intelligent Home" project highlight the government's commitment to smart residential living, making it a natural fit for new housing projects.
In Busan, Samsung has even set up a Smart Home Demonstration Zone, showcasing the latest in home tech. This move underscores the city's role as a hub for smart home innovation, drawing in potential buyers eager to experience the future of living.
With these developments, it's clear that smart home technology isn't just a trend—it's becoming a standard feature in new homes, especially in tech-forward places like Busan.
Sources: Samsung Establishes Smart Home Demonstration Zone in Busan, South Korea Smart Home Market Size, Smart Home Trends 2024
14) Yeongdo district's popularity will surge with urban regeneration projects boosting its appeal
Yeongdo district is becoming a hot spot thanks to major urban regeneration projects.
Back in 2023 and 2024, the government poured a hefty 16 billion KRW into projects like the Huinnyeoul Culture Village. This cash injection has really spruced up the village, making it a more inviting place to live and visit.
Projects like the Mountainside Road Renaissance and the Blissful Village Project have also been game-changers for Yeongdo. They've brought in cultural and environmental upgrades that make everyday life more enjoyable. Naturally, this has led to a bump in property values, a typical outcome when an area gets a facelift.
New public amenities and cultural attractions are popping up, adding to Yeongdo's charm. The Huinnyeoul Culture Village is now a lively cultural hub, hosting events like village festivals and flea markets that attract crowds. This buzz hasn't gone unnoticed, with media coverage shining a light on Yeongdo's rising star.
Locals and visitors alike are drawn to the district's fresh vibe, thanks to these transformative projects. The area is becoming a go-to spot for those looking to enjoy a mix of culture and community.
With all these changes, Yeongdo is on the map as a place to watch, especially for those considering a property investment in a district that's clearly on the up.
Sources: Agenda 21 Culture, Agenda 21 Culture PDF
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15) Busanjin district will be highly sought after due to ongoing urban development projects
The Busanjin district is becoming a hotspot due to ongoing urban development projects.
One major factor is the increased investment in infrastructure, like the redevelopment of Busan Port's North Port. This project is boosting the district's connectivity, making it a magnet for both residents and businesses. The construction of Gadeokdo is another game-changer, enhancing economic viability and drawing more interest to the area.
New commercial and residential complexes are popping up, adding to the district's appeal. A standout project is the transformation of the Gudeok Stadium site into an urban regeneration innovation zone. With a hefty investment of 815.2 billion won, this project will feature sports, culture, commerce, and housing, and is expected to breathe new life into the area by 2028.
Public transportation is also getting a boost, making Busanjin even more attractive. The expansion of Busan’s Bus Rapid Transit (BRT) system is a big deal, as it improves accessibility and convenience for everyone. New routes are connecting key areas like Munhyeon and Suyeong, cutting down on traffic and making it easier to get around.
These developments are not just about convenience; they are reshaping the district's identity. The improved infrastructure and new amenities are turning Busanjin into a vibrant community where people want to live and work. The district is becoming a place where modern living meets traditional charm, offering a unique blend of opportunities.
For anyone considering a move or investment, Busanjin is a district on the rise. With its strategic location and ongoing projects, it's poised to become one of the most desirable areas in the region. The combination of enhanced connectivity and new developments is setting the stage for a bright future.
Sources: MK, Breeze In Flow
16) Geumjeong-gu attracts more interest with affordable housing than central areas
Geumjeong-gu is turning heads for those seeking affordable homes outside Busan's bustling center.
In Geumjeong-gu, property prices are notably lower than in central Busan, making it a magnet for budget-conscious buyers. Take the e-Pyeonhansesang Geumjeong Maison County project, for instance, where apartments are priced well below those in the heart of the city.
The area is buzzing with activity, thanks to the rise of large apartment complexes. The e-Pyeonhansesang Geumjeong Maison County project is set to add about 15,400 new apartments, highlighting the growing demand for affordable housing. Surveys show that buyers are drawn to these options, especially when they come with top-notch community facilities and lush landscaping.
Geumjeong-gu's population is on the rise, fueled by new housing developments. This boom signals a strong housing demand. Plus, with improved public transport, residents enjoy easy access to central Busan, a major perk for those living in the area.
For those in the know, Geumjeong-gu offers a sweet spot between affordability and convenience. The district's strategic location and ongoing development make it a prime choice for homebuyers looking to escape the high prices of central Busan.
As more people discover Geumjeong-gu's potential, the area is poised for increased interest. With its combination of lower prices and quality living, it's no wonder this district is catching the eye of savvy buyers.
Sources: MK Real Estate, Geumjeong District Official Site
17) Virtual reality tours will dominate property marketing and attract tech-savvy buyers
Virtual reality tours are revolutionizing property marketing, especially for tech-savvy buyers.
In places like Busan, where the population is highly tech-savvy, VR tours are becoming increasingly popular. South Korea's impressive internet penetration, even among older generations, creates a perfect environment for digital innovations. This tech-friendly vibe has also boosted e-commerce, positioning South Korea as a key player in the global digital scene.
More than half of internet users now use virtual tours when deciding on properties. Young adults aged 18 to 34 are particularly drawn to properties offering virtual tours, making this technology especially appealing to millennials and Gen Z.
With the real estate sector embracing VR, the global virtual tour market is projected to skyrocket to around USD 12,345.5 million by 2033. This growth is largely fueled by the demand for enhanced property viewing experiences.
In South Korea, the combination of high internet usage and a tech-friendly culture has made VR tours a natural fit. This trend is particularly strong in urban areas like Busan, where digital innovation is part of everyday life.
As more buyers, especially younger ones, seek out properties with virtual tours, the real estate market is adapting to meet these expectations. This shift is not just a trend but a significant change in how properties are marketed and sold.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.