Buying property in Busan: is it worth it?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Busan. If you'd like to learn more about us, you can check our presentation page.

What's the average price per square meter in Busan right now, and how has it changed over the past 1, 3, and 5 years?

As of September 2025, the average price per square meter in Busan is ₩6.69 million, equivalent to approximately USD 4,630.

Over the past year, Busan property prices have declined by 1.9%, following a sharper 5% drop in 2024. This correction comes after a significant surge that began in 2020.

The three-year trend shows prices are slightly down from their 2022 peak, but the market had experienced substantial growth prior to the recent correction. Looking at the five-year period, prices have increased by a substantial 51.4% since 2020, despite the recent downturn.

Premium locations like Marine City in Haeundae command much higher prices, with top-tier units reaching ₩29.7 million per 3.3㎡ (traditional Korean measurement unit). This demonstrates the significant price variation across different areas and property qualities in Busan.

Which neighborhoods in Busan are seeing the fastest price growth, and which are stagnating or declining?

The Busan property market shows a clear divide between premium central areas and struggling peripheral districts.

Growth hotspots include Haeundae-gu, known for its beachfront luxury properties, and Suyeong-gu, which benefits from central location and ongoing redevelopment projects. Geumjeong-gu offers affordable options with new supply, while Nam-gu attracts buyers with strong schools and stable prices. Yeonje-gu also shows promise due to active redevelopment zones.

Conversely, western districts are experiencing significant declines, with some areas seeing drops of up to 10% or more. Gangseo and Saha are among the worst performers, struggling with oversupply and less central locations. The exception in western Busan is Gijang-gun, which has maintained better performance.

This divergence reflects broader market dynamics where location, accessibility, and development quality increasingly determine property performance. Central, well-connected areas with good amenities continue to attract buyers, while outer districts face structural challenges from oversupply and demographic shifts.

How do property prices differ between apartments, villas, and detached houses across the main districts?

What rental yields can you realistically expect in Busan today, and how do they vary by area and property type?

Busan rental yields vary significantly depending on rental strategy and location, with short-term rentals offering the highest returns.

Short-term rental yields through platforms like Airbnb generate approximately 6-7% annual gross returns. These properties benefit from Busan's strong tourism sector, with an average occupancy rate of 61%. Tourist hotspots and central areas perform best for this strategy.

Long-term rental yields range from 2.5-4.5% annually, with higher yields typically found in outer districts and lower yields in premium coastal areas and central business districts. This reflects the inverse relationship between property values and rental returns.

Apartments generally offer the lowest yields in luxury segments but higher returns for mid-market small units. Villas and older properties may show higher yields on paper but often face challenges with slow lease-up periods and tenant quality.

It's something we develop in our South Korea property pack.

How strong is tenant demand in the short term, and what's the outlook for rental demand in the next 3–5 years?

Current tenant demand in Busan shows strong segmentation, with robust interest for small apartments and short-term rentals in tourist areas, while demand remains weak for large units or properties in oversupplied districts.

The short-term rental market benefits from Busan's position as a major tourist destination, particularly in central and coastal areas. However, this demand is concentrated in specific neighborhoods and property types that cater to visitors.

Looking ahead 3-5 years, the rental market is likely to strengthen as purchase demand stagnates and more young professionals choose renting over buying. Demographic trends favor smaller, efficiently designed units as single-person households become increasingly common.

Compact, well-located properties are expected to see the strongest rental demand growth, while large family-oriented units may continue to struggle. The shift toward urban living and changing lifestyle preferences supports this trend toward smaller rental units.

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What are the main government regulations or restrictions that impact property purchases in Busan?

Foreign buyers face significant new restrictions when purchasing property in Busan, with recent policy changes aimed at curbing speculation.

The most important regulation requires foreign buyers to move into their purchased property within four months and maintain residence for at least two years. This rule targets speculative investment and ensures properties are used for actual housing rather than pure investment vehicles.

Additional local regulations impact new developments, including density restrictions and resale conditions that can affect both development timelines and property liquidity. These rules vary by district and property type.

The government continues to monitor the property market closely, and further tightening of foreign ownership rules remains possible, particularly if property prices begin rising rapidly again or if speculation increases.

How liquid is the market — meaning how quickly can you resell a property in different areas and at what discount?

Busan's property market liquidity is significantly slower than Seoul, with sales cycles measured in months rather than weeks.

Central, well-located properties typically sell faster than those in outer districts, but even prime locations require patience. Small apartments in central areas and tourist zones tend to have the best liquidity, while large, expensive properties face longer marketing periods.

Regional properties, particularly in western and outlying districts, often linger on the market for extended periods. The current oversupply situation, with 4,709-5,400 unsold units, has further reduced liquidity in these areas.

Sellers in slower-moving areas may need to accept discounts of 5-10% or more below asking prices to achieve sales, while premium coastal properties in Haeundae or Marine City maintain better pricing power but still require longer sales periods than Seoul equivalents.

What are the most realistic short-term risks for buyers right now — currency, oversupply, policy changes, or financing costs?

Oversupply represents the most immediate and significant risk for Busan property buyers, particularly in western and outlying areas.

The market faces substantial excess inventory, with toxic unsold stock concentrated in less desirable locations. This oversupply puts downward pressure on both prices and rental demand in affected areas.

Currency fluctuations pose ongoing risks for international buyers, as a weaker won can impact both purchase costs and eventual sale proceeds when converted back to foreign currency. Rising financing costs, despite the Bank of Korea's current 2.25% rate, remain a concern given high household debt levels.

Policy changes represent another key risk, with the government actively monitoring the market and potentially implementing further restrictions on foreign buyers or speculation. Demographic trends, including population decline, create long-term demand challenges, particularly for family-sized properties.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What's the medium-term outlook (3–5 years) for Busan's property market in terms of infrastructure projects, economic growth, and population trends?

Busan's medium-term property outlook is cautiously positive but with significant geographic variation across the city.

Economic growth in Busan lags behind Seoul, which limits broad-based property appreciation to modest 1-2% annual growth city-wide. However, select districts with infrastructure improvements and development projects may outperform this average.

Infrastructure upgrades in tourist zones, transport improvements, and developments in the Marine City area are expected to drive growth in specific locales. These targeted improvements create pockets of opportunity rather than city-wide appreciation.

Demographic trends favor smaller living units as single-person households continue to increase. This shift supports demand for compact, efficient apartments while challenging the market for larger family homes. The ongoing population decline creates a ceiling on overall demand growth.

It's something we develop in our South Korea property pack.

What's the long-term picture (10+ years) — is Busan becoming more or less attractive compared to Seoul or other Korean cities?

Busan's long-term property prospects remain mixed when compared to Seoul, with distinct advantages in affordability and lifestyle but challenges in economic dynamism.

The city maintains significant advantages including better affordability, superior rental yields, and enhanced quality of life compared to Seoul. Coastal location, lower population density, and more reasonable property prices continue to attract certain buyer segments.

However, slower economic and population growth limits capital appreciation potential outside core coastal areas. The luxury market shows more promise, with high-net-worth individuals increasingly interested in top-end tower developments and branded lifestyle projects.

Key coastal areas like Haeundae and Marine City are expected to remain resilient, benefiting from tourism, lifestyle appeal, and limited developable beachfront land. The slow population decline puts pressure on outer areas but less impact on premium coastal locations with unique attributes.

Given different budgets, what are the best positioning strategies — for example, under $200k, around $500k, or over $1M?

If your goal is to live, rent out, or eventually resell, what types of properties and districts best fit each strategy right now?

Different investment goals require distinct property selection strategies in Busan's current market conditions.

For living purposes, apartments or mixed-use units in Suyeong, Nam-gu, or Haeundae offer the best combination of walkability, amenities, and lifestyle quality. These areas provide good access to transportation, shopping, dining, and recreational facilities.

Rental income strategies perform best with small, high-yield apartments or officetels in tourist and business districts like Haeundae and Nampo-dong. These properties attract both short-term visitors and long-term tenants, providing flexibility in rental strategy.

For eventual resale, focus on new build properties in premium sea-view projects or high-quality units in central districts that offer the best liquidity. Branded developments and properties with unique features like ocean views or premium amenities maintain value better and sell faster.

Each strategy should consider property size, age, occupancy patterns, and location quality to optimize outcomes under current market conditions. Avoiding oversupplied outer areas remains crucial regardless of investment goal.

It's something we develop in our South Korea property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Busan Price Forecasts - BambooRoutes
2. Average Apartment Price per Sqm South Korea - BambooRoutes
3. Korea Bizwire - Apartment Price Gap in Busan
4. Busan Real Estate Trends - BambooRoutes
5. Busan Metropolitan City Official Website
6. Airbtics - Airbnb Revenue in Busan
7. South Korea Real Estate Forecasts - BambooRoutes
8. South Korea Housing Market Forecast - BambooRoutes
9. KED Global - Real Estate Regulations
10. Maeil Business - Economy News