Authored by the expert who managed and guided the team behind the South Korea Property Pack
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What is happening in Busan’s real estate market? Are prices going 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?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Seomyeon to Gwangalli and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Busan real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
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) Foreign investors will target areas with high short-term rental demand
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
3) Rents in tourist hotspots will rise with 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) Large suburban houses will become less appealing as convenience and location gain priority
In recent years, housing preferences have shifted dramatically, especially in places like Busan.
Back in 2023 and 2024, property prices in central areas such as Centum City and Yeongdo rose significantly due to high demand and strategic developments. These urban locations became more appealing than the suburbs, drawing in people who value convenience and vibrant city life.
Another trend is the growing demand for tech-smart, energy-efficient apartments and smaller homes in urban areas. This shift is largely driven by the rise of remote work and a focus on sustainability. By 2025, young professionals and tech workers found these homes to be a hot commodity, as they offer modern amenities and a reduced carbon footprint.
Consumer surveys from recent years highlight a clear preference for living close to work and amenities. Urban areas with improved public transportation networks and amenities have become more desirable. In Yeongdo, for instance, the expansion of public transportation and the development of mixed-use spaces have made city living more attractive.
People are increasingly prioritizing convenience and location over large suburban houses. This trend is evident in the way urban centers are evolving to meet the needs of modern residents, offering a blend of work, leisure, and living spaces all in one place.
As more individuals seek out these urban conveniences, large suburban houses are losing their appeal, making way for a new era of city living that emphasizes efficiency and accessibility.
Sources: Chosun Biz, HIRI Blog
5) Student influx will increase 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 become more popular as central land availability decreases
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 for eco-friendly buildings will boost sustainable residential developments
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 will result in higher quality but pricier 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
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) New property tax rules will affect 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 will boost demand for homes with dedicated 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, 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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13) Smart home technology will be a major selling feature in new residential projects
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 will gain popularity 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
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.
16) Geumjeong-gu will attract more interest with its affordable housing compared to 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 increasingly attract tech-savvy buyers in property marketing
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.
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.