Is right now a good time to buy a property in Daegu? (2026)

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

Everything you need to know before buying real estate is included in our South Korea Property Pack

Is it smart to buy now in Daegu, or should I wait as of 2026?

Do real estate prices look too high in Daegu as of 2026?

As of early 2026, Daegu property prices appear to be moderately undervalued compared to their recent highs, with the city's KB-based housing price index sitting at around 84, which is roughly 16% below the late-2021 peak of 100.

One clear on-the-ground signal that prices are not stretched is the large volume of unsold completed apartments in Daegu, which was still around 8,800 units as of late 2024, and this typically means builders are offering incentives and discounts rather than demanding premium prices.

Another supporting signal is that Daegu has been dubbed the "graveyard of unsold homes" by Korean media, and conflicts have emerged between early buyers and later buyers who got deep discounts, which tells you sellers are under pressure and prices have room to be negotiated down.

You can also read our latest update regarding the housing prices in Daegu.

Does a property price drop look likely in Daegu as of 2026?

As of early 2026, the likelihood of a meaningful property price decline in Daegu over the next 12 months is medium, with a slow grind downward or flat prices more probable than a sharp crash.

We estimate the plausible price change range for Daegu over the next 12 months to be roughly negative 3% to positive 2%, depending on property type and neighborhood, with weaker submarkets facing more downside risk.

The single most important macro factor that could increase the odds of a price drop in Daegu is a tightening of household borrowing rules by Korea's Financial Services Commission, because even if interest rates stay flat, stricter loan approvals can suppress buyer demand.

This factor is moderately likely to persist in 2026, as Korea has signaled continued emphasis on managing household debt through "stress DSR" requirements and cautious lending practices, especially given Seoul's overheating concerns spilling over into national credit policy.

Finally, please note that we cover the price trends for next year in our pack about the property market in Daegu.

Could property prices jump again in Daegu as of 2026?

As of early 2026, the likelihood of a renewed price surge in Daegu within the next 12 months is low to medium, because citywide demand drivers remain weak even though specific neighborhoods could see localized gains.

We estimate the plausible upside price change range for Daegu over the next 12 months to be around 0% to 5%, with the higher end only achievable in prime school districts and areas near major infrastructure projects.

The single biggest demand-side trigger that could drive prices to jump in Daegu is a meaningful drop in Bank of Korea interest rates combined with easing of household debt rules, which would make mortgages more accessible and bring sidelined buyers back into the market.

Please also note that we regularly publish and update real estate price forecasts for Daegu here.

Are we in a buyer or a seller market in Daegu as of 2026?

As of early 2026, Daegu is a mild buyer's market overall, with the exception of prime school-zone pockets in Suseong-gu where competition can be tighter.

The effective months-of-inventory in Daegu is elevated due to thousands of unsold units (including completed apartments sitting empty), and when inventory levels are this high, buyers typically have strong bargaining power and can take their time making decisions.

The share of listings with price reductions or builder incentives in Daegu appears significant, as evidenced by reports of developers offering 300 million to 400 million won discounts on unsold units, which clearly suggests sellers are struggling to close deals at original asking prices.

Are homes overpriced, or fairly priced in Daegu as of 2026?

Are homes overpriced versus rents or versus incomes in Daegu as of 2026?

As of early 2026, Daegu homes appear fairly priced to slightly undervalued compared to recent peak levels, though affordability remains stretched for average local incomes.

The price-to-rent ratio in Daegu city center is estimated around 63, which is higher than a typical "balanced market" level of 15-20, meaning buying is still expensive relative to renting, but this ratio has improved as prices fell from their 2021 highs.

The price-to-income ratio in Daegu is estimated around 14, which means the average home costs about 14 times the average annual household income, and while this is stretched, it is still more affordable than Seoul where ratios exceed 20.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Daegu.

Are home prices above the long-term average in Daegu as of 2026?

As of early 2026, Daegu home prices are still above pre-boom long-term averages but have corrected significantly from their 2021 peak, sitting roughly 16% below that high point.

The recent 12-month price change in Daegu was approximately negative 3.9% year-over-year as of Q3 2025, which is a steeper decline than the national average and reflects the regional market's ongoing adjustment.

In inflation-adjusted (real) terms, Daegu prices are positioned meaningfully below their 2021 cycle peak, which means buyers today are getting better value than those who purchased during the market frenzy three to four years ago.

What local changes could move prices in Daegu as of 2026?

Are big infrastructure projects coming to Daegu as of 2026?

As of early 2026, the biggest planned infrastructure project likely to impact Daegu property prices is Metro Line 4, which will connect key demand nodes like Beomeo, Dongdaegu, Kyungpook National University, and EXCO, potentially boosting values near future stations by 5% to 15% once operational.

The estimated timeline for Metro Line 4 involves final master planning completed in 2024, with construction expected to span several years and full delivery likely in the early 2030s, so the price impact will be gradual rather than immediate.

For the latest updates on the local projects, you can read our property market analysis about Daegu here.

Are zoning or building rules changing in Daegu as of 2026?

The most important zoning-related development being discussed in Daegu is the "aged residential area" redevelopment planning for neighborhoods like Beomeo-dong, Suseong-dong, Daemyung-dong, and Sangyeok-dong, where the city is exploring how to upgrade older housing stock.

As of early 2026, the net effect of these redevelopment efforts on prices is mixed: upgrades can support values in targeted areas, but the construction process also brings short-term supply bursts and disruption that can temporarily cap prices.

The areas most affected by these rule changes in Daegu are the older residential pockets in Suseong-gu and Nam-gu, where aging apartment complexes are prime candidates for reconstruction projects under Korea's urban renewal frameworks.

Are foreign-buyer or mortgage rules changing in Daegu as of 2026?

As of early 2026, the direction of mortgage rule changes in Daegu is toward continued tightening, with Korea's "stress DSR" requirements and LTV caps keeping mortgage access constrained even as the regional market remains soft.

The most likely mortgage rule change being maintained is the stress interest rate calculation, which reduces borrowing capacity by 2 to 4 percentage points and makes it harder for buyers to qualify for larger loans.

For foreign buyers specifically, Korea has increased transaction audits and oversight, though no outright ban or quota exists, so the bigger constraint remains domestic credit policy rather than nationality-based restrictions.

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

Will it be easy to find tenants in Daegu as of 2026?

Is the renter pool growing faster than new supply in Daegu as of 2026?

As of early 2026, the balance between renter demand and new rental supply in Daegu is tilted toward oversupply, with thousands of unsold units potentially entering the rental market and competing for a stable but not rapidly growing tenant pool.

Daegu's population has been shrinking over the past decade, and household formation is modest compared to Seoul, which means the renter demand base is not expanding quickly enough to absorb excess supply in many neighborhoods.

On the supply side, Daegu saw significant apartment completions in recent years, and the roughly 8,800 unsold units as of late 2024 represent potential rental competition that landlords must contend with when setting rents and finding tenants.

Are days-on-market for rentals falling in Daegu as of 2026?

As of early 2026, days-on-market for rentals in Daegu is generally stable to slightly elevated outside prime areas, meaning landlords in average neighborhoods may need to wait longer to find tenants compared to pre-oversupply years.

The difference in leasing speed is noticeable between "best areas" like Beomeo-dong or Manchon-dong in Suseong-gu (where rentals clear faster due to school-zone demand) and weaker districts like Buk-gu or Seo-gu where competition from unsold units extends vacancy periods.

One common reason days-on-market can fall in specific Daegu neighborhoods is proximity to major employment or transit hubs like Dongdaegu Station, where commuter convenience keeps rental demand consistently higher.

Are vacancies dropping in the best areas of Daegu as of 2026?

As of early 2026, vacancy trends in the best-performing rental areas of Daegu like Beomeo-dong, Manchon-dong, Suseong-dong, and Hwanggeum-dong are relatively stable, with these school-zone neighborhoods maintaining tighter occupancy than the citywide average.

The vacancy rate (or effective occupancy pressure) in these prime Suseong-gu areas is meaningfully lower than the overall Daegu market, because families prioritize educational access and are willing to pay premiums that keep units occupied.

One practical sign that these "best areas" are tightening first is when landlords in Beomeo-dong or Manchon-dong can hold firm on jeonse (long-term deposit) amounts while landlords in outer districts must offer discounts or switch to monthly rent to attract tenants.

By the way, we've written a blog article detailing what are the current rent levels in Daegu.

Am I buying into a tightening market in Daegu as of 2026?

Is for-sale inventory shrinking in Daegu as of 2026?

As of early 2026, for-sale inventory in Daegu is not clearly shrinking, as the city has been working through a large backlog of unsold units that peaked at around 14,000 in early 2023 and stood at approximately 8,800 by late 2024.

The effective months-of-supply in Daegu remains elevated compared to a balanced market, and while inventory has decreased from its peak, it is still high enough that buyers have meaningful selection and negotiating power.

Are homes selling faster in Daegu as of 2026?

As of early 2026, the median time-to-sell for homes in Daegu is generally stable to slightly slow, with properties outside prime areas often taking several months to find buyers while top Suseong-gu apartments sell faster.

The year-over-year change in days-on-market for Daegu is roughly flat, as the market remains in a digestion phase where neither rapid sales nor complete stagnation is the norm, though transaction volumes dipped about 1% in the first nine months of 2025.

Are new listings slowing down in Daegu as of 2026?

As of early 2026, we estimate that new for-sale listings in Daegu are moderately subdued, as Daegu City suspended approvals for new housing construction projects starting in January 2023 to help clear existing inventory.

The seasonal pattern for new listings in Daegu typically sees more activity in spring, but the current level of new supply entering the market is intentionally constrained by policy, making the pattern less pronounced than in normal years.

The most plausible reason new listings are slow in Daegu is the combination of construction approval freezes and seller caution, as homeowners who bought near the peak are reluctant to list at current lower prices.

Is new construction failing to keep up in Daegu as of 2026?

As of early 2026, new construction in Daegu is not failing to keep up with demand; instead, the city has experienced oversupply, with recent completions exceeding absorption and leaving thousands of units unsold.

The recent trend in housing supply shows regional construction down about 22% year-over-year nationally, and Daegu specifically has intentionally slowed new approvals to work through its inventory backlog rather than add more units.

Will it be easy to sell later in Daegu as of 2026?

Is resale liquidity strong enough in Daegu as of 2026?

As of early 2026, resale liquidity in Daegu is moderate for prime apartments but weak for villas, officetels, and properties in less desirable neighborhoods, meaning sellers need realistic pricing to close deals within a reasonable timeframe.

The median days-on-market for resale homes in Daegu's prime areas like Suseong-gu is likely in the 2-4 month range for well-priced units, while properties in weaker districts may sit for 6 months or longer, which is slower than a "healthy liquidity" benchmark of under 60 days.

The property characteristic that most improves resale liquidity in Daegu is location within a recognized school zone in Suseong-gu (especially Beomeo-dong or Manchon-dong), because family buyers prioritize educational access and compete more actively for these units.

Is selling time getting longer in Daegu as of 2026?

As of early 2026, selling time in Daegu has likely increased compared to the 2020-2021 boom period, when strong demand meant faster transactions, but has stabilized relative to the immediate post-peak correction years.

The current median days-on-market in Daegu varies widely, with a realistic range from about 60 days for well-priced prime apartments to 180+ days for overpriced or poorly located properties.

One clear reason selling time can lengthen in Daegu is the large unsold inventory overhang, because buyers have many options and feel no urgency, which allows them to negotiate harder and wait for better deals.

Is it realistic to exit with profit in Daegu as of 2026?

As of early 2026, the likelihood of selling with a profit in Daegu is medium, assuming you buy at current below-peak prices, hold for at least 5 years, and choose a location with solid fundamentals like Suseong-gu school zones or transit nodes.

The minimum holding period that most often makes exiting with profit realistic in Daegu is around 5 to 7 years, which allows time for market recovery, rental income accumulation, and absorption of transaction costs.

The estimated total round-trip cost (buying plus selling) in Daegu is roughly 8% to 12% of the property value, which translates to about 24-36 million won on a 300 million won apartment, or approximately 17,000-26,000 USD / 16,000-24,000 EUR.

The factor that most increases profit odds in Daegu is buying below market value through negotiation (especially on unsold new builds where developers are offering steep discounts), because entering at a lower basis gives you a built-in buffer against future price fluctuations.

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 Daegu, 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.