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Property prices in Daegu are showing mixed signals as we reach mid-2025, with the market stabilizing after a period of volatility.
The average apartment price in Daegu city center stands at approximately ₩9.9 million per square meter, while areas outside the center range from ₩6.7 to ₩8.3 million per square meter. While some sources report annual declines of up to -3.87%, other data suggests modest growth of around 2% annually since 2023, indicating a market in transition.
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Daegu's residential property market in mid-2025 is stabilizing after experiencing price volatility, with average costs ranging from ₩6.7-9.9 million per square meter depending on location.
The market shows signs of recovery following government policy changes and interest rate cuts, though growth remains modest compared to Seoul's performance.
| Metric | Current Status (Mid-2025) | Trend |
|---|---|---|
| Average Price (City Center) | ₩9.9 million per m² | Stabilizing |
| Average Price (Outside Center) | ₩6.7-8.3 million per m² | Mixed signals |
| Annual Price Change | -3.87% to +2% | Variable by source |
| 5-Year Growth | ~27% total | Long-term positive |
| Top Property Type | Apartments | Leading demand |
| Interest Rate Impact | Bank rate at 2.5% | Stimulating demand |
| Future Outlook | 2-3% annual growth | Modest recovery |
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.
How much have property prices increased in Daegu over the past 12 months?
Property prices in Daegu have shown conflicting trends over the past 12 months, with data indicating both declines and modest growth depending on the source and methodology.
Some sources report a decline of -3.87% year-on-year as of February 2025, while other market analysis suggests property prices have been steadily climbing, with at least a 2% increase each year since 2023. This apparent contradiction reflects different measurement periods and methodologies used by various data providers.
The market appears to have experienced a dip in late 2023 before beginning recovery in late 2024. In 2023, Daegu saw a notable 7.12% rise in house prices, a big leap from the previous year's 1.4% increase, suggesting the recent negative figures may represent a temporary correction rather than a sustained downtrend.
As of mid-2025, the gap between short- and long-term moving averages for apartment prices has narrowed, indicating market stabilization and a potential bottoming out after the period of decline experienced in late 2023 and early 2024.
What are the current average property prices per square meter in Daegu?
Property prices in Daegu vary significantly based on location and proximity to the city center, with clear price differentials between central and peripheral areas.
In Daegu's city center, apartments average approximately ₩9.9 million per square meter (about $7,200 USD), reflecting the premium for central locations with better amenities and transportation access. Areas outside the city center command lower prices, ranging from ₩6.7 to ₩8.3 million per square meter depending on the specific location and data source.
The 12-month rolling average as of February 2025 stands at ₩6.7 million per square meter (approximately $4,646 USD), which represents the broader market average across all Daegu districts. In 2025, the average price of an apartment in Daegu is around 300 million KRW, which aligns with these per-square-meter calculations for typical apartment sizes.
These prices position Daegu as significantly more affordable than Seoul, where prices can reach ₩20 million per square meter in premium areas, making Daegu an attractive option for value-conscious buyers.
Which districts in Daegu are experiencing the highest property price growth?
Specific district-level growth data for Daegu is limited, but infrastructure development patterns provide strong indicators of where appreciation is most likely occurring.
No specific Daegu districts are highlighted for exceptional growth in the latest comprehensive data, as the city overall has lagged behind Seoul and other metropolitan areas. However, anecdotal evidence suggests that areas near new infrastructure projects are experiencing above-average growth potential.
Districts benefiting from Subway Line 4 construction, new metropolitan roads, and the Urban Air Mobility (UAM) initiative are positioned for stronger performance. These infrastructure improvements typically boost property values in affected areas, following historical patterns seen throughout South Korea where transport connectivity drives real estate appreciation.
The lack of dramatic district-level variation reflects Daegu's more balanced urban development compared to Seoul's pronounced geographical disparities. As infrastructure projects progress through 2025 and beyond, clearer differentiation between districts is expected to emerge.
What property types are seeing the biggest price increases in Daegu?
Apartments continue to dominate Daegu's property market both in terms of demand and price appreciation, significantly outperforming other residential property types.
Apartment rents increased by 1.65% year-on-year in March 2025, compared to 0.5% for row houses and 0.23% for detached houses. This rental growth differential typically correlates with capital appreciation trends, indicating apartments are the strongest performing property type.
Officetels are gaining popularity among single-person and young professional households, contributing to shifting demand patterns but not yet outpacing apartments in price growth. The luxury residential segment shows particular strength, with expectations for the luxury market to grow at a compound annual growth rate of 10% through 2030.
It's something we develop in our South Korea property pack, analyzing how different property types respond to market conditions and demographic changes in cities like Daegu.
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How do current property prices compare to five years ago in Daegu?
Daegu property prices have experienced substantial growth over the five-year period from 2019 to 2025, despite recent market volatility.
In 2018-2019, average prices per pyeong (3.3 m²) in Daegu were approximately ₩9.27 million. By late 2024 and early 2025, this has increased to ₩11.76-11.83 million per pyeong, representing a rise of roughly 27% over the five-year period.
Converting to per-square-meter terms, prices have risen from around ₩5-6 million in 2019 to the current range of ₩6.7-9.9 million in 2025, depending on location and property type. This represents significant appreciation despite the recent market stabilization.
The five-year growth trajectory reflects broader South Korean property market trends, including urbanization pressures, infrastructure development, and changing demographic patterns. While Daegu's growth has been less dramatic than Seoul's, it has still delivered solid returns for property owners over this period.
What are the property price forecasts for Daegu through 2030?
Property price forecasts for Daegu suggest modest but steady growth over the next five years, with expectations more conservative than historical trends.
Nationally, a 2–3% annual growth is projected for property prices, with regional cities like Daegu expected to see modest growth or stabilization. This represents a significant moderation from the dramatic growth rates seen in previous years.
For the remainder of 2025, major cities outside Seoul like Busan, Daegu, and Gwangju have entered their third consecutive year of price declines, though signs of stabilization are emerging. The medium-term outlook for 2026-2030 suggests Daegu may see annual growth in the 1-3% range, supported by infrastructure development and demographic stability.
Long-term forecasts through 2035 indicate that ongoing urbanization and infrastructure investment will continue supporting the market, though demographic headwinds from an aging population and declining household formation could temper gains. The risk of oversupply in some segments remains a constraining factor for more aggressive growth.
How are government policies affecting Daegu's property market in 2025?
Government housing policies and regulatory changes are playing a significant role in stabilizing Daegu's property market, though the city faces less restrictive measures than Seoul.
Recent reforms have tightened mortgage rules for multi-property owners and speculative buyers, with acquisition taxes reaching up to 9.4% in overpopulated areas like central Seoul, while standard rates of 4.6% apply elsewhere including Daegu. While Daegu isn't subject to the strictest regulations, national tightening of lending standards has contributed to price stabilization and reduced volatility.
The Financial Services Commission implemented stricter stressed debt-service ratio (DSR) regulations, with the second phase taking effect in September 2024. These measures have reduced lending limits by 2-4% for many borrowers, cooling speculative activity across all regions including Daegu.
Rental market reforms include incentives for corporate landlords and tax breaks for long-term rentals, which may encourage investment in rental housing and indirectly support property prices. These policies represent the government's attempt to balance market stability with housing affordability concerns.
What impact are current interest rates having on Daegu's property market?
Interest rate policy is providing significant stimulus to Daegu's property market, with multiple rate cuts boosting buyer activity since late 2024.
The Bank of Korea reduced rates to 2.5% from 2.75% as of May 2025, marking the fourth cut in the current easing cycle. This represents a substantial decrease from the peak of 3.5% reached in previous tightening cycles.
Lower rates have increased buyer activity measurably, with Daegu's housing transactions rising from 25,000 in 2023 to 27,700 in 2024. However, the benefits are distributed unevenly across regions, with Seoul experiencing a much sharper rebound than Daegu and other secondary cities.
Despite the monetary easing cycle, interest rates on mortgage loans issued by South Korean banks reached 4.23% by February 2025, as individual banks maintain higher rates to suppress lending demand in accordance with government anti-speculation policies. This creates a complex dynamic where policy rates support the market while actual borrowing costs remain elevated.
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.
How does demand in Daegu compare to the national average in 2025?
Property demand in Daegu is recovering but remains below the national average in terms of both transaction volume and price momentum.
Daegu accounted for 27,700 out of 642,600 national housing transactions in 2024, representing approximately 4.3% of the national total. This proportion reflects the city's position as a significant regional market while highlighting its smaller scale compared to the Seoul metropolitan area.
By 2025, Daegu's occupancy volume is expected to decrease by 53%, reflecting fewer households moving into the city. This demographic trend represents a significant challenge, as migration patterns show many residents leaving Daegu for places like Seoul and Gyeonggi where job prospects are more promising.
The demand trend in Daegu reflects broader regional dynamics, where secondary cities struggle to compete with Seoul's economic opportunities. While infrastructure development and lower costs provide some attraction, the overall demand profile remains softer than national averages, contributing to more modest price growth expectations.
How do Daegu property prices compare to other major South Korean cities?
| City | Average Price per m² (2025) | YoY Change (2024-2025) | Cost of Living vs. Daegu |
|---|---|---|---|
| Daegu | ₩6.7–9.9 million | -3.87% to +2% | Baseline |
| Gwangju | ₩6.0 million | -1.13% | +10% (higher) |
| Daejeon | ₩5.9–6.0 million | 0% to -2% | Similar |
| Ulsan | ₩6.5–7.0 million | Slightly negative | Slightly higher |
| Busan | ₩8.5–12 million | -2% to -4% | +15% higher |
| Seoul | ₩15–25 million | +3.63% | +80% higher |
Daegu's property prices position the city in the middle tier of South Korean urban markets, offering better value than Seoul while commanding premiums over smaller regional centers.
What role is urban redevelopment playing in Daegu's property market?
Urban redevelopment and infrastructure investment are emerging as key drivers of selective property value growth in Daegu, though effects are still developing.
Major infrastructure projects include Subway Line 4 expansion, new metropolitan road networks, and the innovative Urban Air Mobility (UAM) initiative. These projects are expected to boost property values, especially in areas with improved accessibility and connectivity.
Daegu City has invested a hefty 965 billion won into smart city tech by 2023, focusing on transportation, safety, and urban management. This substantial investment in smart city infrastructure is designed to improve residents' quality of life and enhance the city's competitive position.
Historically, infrastructure upgrades in South Korea have led to measurable increases in property prices in affected districts. As these projects progress through completion over the next 2-3 years, their impact on local property values should become more pronounced and measurable.
It's something we develop in our South Korea property pack, examining how infrastructure development correlates with property appreciation patterns across different South Korean cities.
How is China's economic situation affecting Daegu's real estate market?
China's economic slowdown is having a limited but noticeable impact on Daegu's real estate market, primarily affecting luxury and commercial segments rather than mainstream residential properties.
Foreign direct investment from China into South Korea has slowed in 2024-2025 due to China's domestic economic challenges and increased geopolitical tensions. While comprehensive data specific to Daegu isn't available, the broader trend affects foreign investment flows that historically supported premium property segments.
Daegu's real estate market remains primarily driven by domestic demand, which insulates it from dramatic foreign investment fluctuations. The impact has been most noticeable in luxury residential properties and commercial real estate where foreign buyers traditionally played a larger role.
Market sentiment among some foreign investors has become more cautious, but this represents a relatively small portion of overall transaction activity in Daegu compared to markets like Seoul or Busan where international investment plays a larger role. The city's focus on domestic buyers and regional economic fundamentals provides stability against external economic pressures.
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.
Daegu's residential property market in mid-2025 is showing signs of stabilization after a period of volatility, with mixed signals indicating both recovery potential and continued regional challenges.
While property prices remain significantly more affordable than Seoul, with averages ranging from ₩6.7 to ₩9.9 million per square meter, the market faces demographic headwinds as younger residents migrate to larger cities for better employment opportunities.
Sources
- Global Property Guide - South Korea Price History
- Bamboo Routes - Daegu Real Estate Market Statistics
- Bamboo Routes - South Korea Price Forecasts
- Numbeo - Property Investment in Daegu
- Bamboo Routes - Daegu Property Investment Guide
- Bamboo Routes - South Korea Real Estate Trends 2025
- Bamboo Routes - South Korea Housing Market Forecast
- CNBC - South Korea Central Bank Rate Cuts
-Complete Guide to Property Investment in Daegu 2025
Final Answer: No, they are stable. While Daegu's property market shows some positive indicators including infrastructure development and interest rate cuts, the overall trend indicates stabilization rather than significant upward movement, with mixed data showing both modest growth and declines depending on measurement methodology.