What are the price trends and forecasts in Daegu right now? (2026)

The Daegu property market in 2026 is stabilizing after years of pressure from oversupply and elevated unsold inventory, creating a two-speed market where premium school districts and transit corridors outperform the city average.

This guide breaks down current housing prices in Daegu, analyzes price trends by neighborhood and property type, and provides forecasts for 2026, 5 years, and 10 years ahead.

We constantly update this blog post as new data becomes available to ensure you have the freshest information on Daegu real estate.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Daegu.

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 Daegu. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Daegu as of 2026?

What is the average house price in Daegu as of 2026?

As of early 2026, the typical home price in Daegu sits at approximately 320 million won (around $225,000 USD or €215,000 EUR), reflecting a citywide middle point that blends apartments, villas, and officetels into one practical estimate.

When you look at pricing per unit of space, the average price per square meter for residential properties in Daegu lands at roughly 3.6 million won (about $2,500 USD or €2,400 EUR), though this varies significantly between premium Suseong-gu and more affordable districts like Buk-gu or Seo-gu.

The realistic price range covering about 80% of property purchases in Daegu spans from roughly 180 million won to 550 million won ($125,000 to $385,000 USD, or €120,000 to €370,000 EUR), with the lower end representing older villas in peripheral areas and the upper end capturing newer apartments in sought-after school zones.

How much have property prices increased in Daegu over the past 12 months?

Property prices in Daegu declined by roughly 1% in nominal terms over the past 12 months from January 2025 to January 2026, making it one of the weaker performing regional markets in South Korea during this period.

When you account for inflation, the real decline reaches about 3%, and the performance varies across property types with newer apartments in premium districts holding value better than older villas or properties in oversupplied clusters.

The single most significant factor behind this price softness in Daegu is the persistent unsold inventory overhang, which peaked at around 14,000 units in early 2023 and still hovers near 8,800 units, preventing the kind of price recovery seen in Seoul's tighter market.

Which neighborhoods have the fastest rising property prices in Daegu as of 2026?

As of early 2026, the neighborhoods with the fastest rising (or least declining) property prices in Daegu are Suseong-gu's Beomeo-dong, Manchon-dong, and Hwanggeum-dong, along with the Dongdaegu Station corridor in Dong-gu including Sincheon-dong, and select pockets in Jung-gu's central core near Dongseongno.

These top-performing neighborhoods in Daegu have shown price growth ranging from flat to around 2-3% annually, which counts as outperformance in a market where the citywide average has been declining, with Suseong-gu school-zone properties proving the most resilient.

The main demand driver behind these leading Daegu neighborhoods is the concentration of premier educational resources in Suseong-gu combined with KTX high-speed rail connectivity at Dongdaegu Station, which creates persistent buyer interest even during market downturns.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Daegu.

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.

Which property types are increasing faster in value in Daegu as of 2026?

As of early 2026, newer branded apartments in premium districts lead the appreciation ranking in Daegu, followed by well-located officetels near transit and employment nodes, then villas and low-rise multi-family units, with detached homes showing the most mixed performance depending on specific location.

The top-performing property type in Daegu, which is newer apartments in school-zone districts like Suseong-gu, has maintained values or shown modest appreciation of 1-3% annually while other segments declined, making them the clear relative winners in this soft market.

The main reason apartments outperform other property types in Daegu is their superior liquidity and mortgage-friendliness, as Korean banks and buyers strongly prefer well-known apartment complexes, which makes them the first segment to stabilize when market sentiment improves.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much do properties cost in Daegu?
• How much should you pay for an apartment in Daegu?
• How much should you pay for a studio in Daegu?

What is driving property prices up or down in Daegu as of 2026?

As of early 2026, the three main factors driving property prices in Daegu are the persistent unsold inventory overhang that caps price recovery, interest rate sensitivity as the Bank of Korea holds rates at 2.5% while considering further policy moves, and the two-speed market structure where premium school districts diverge sharply from oversupplied areas.

The factor exerting the strongest upward pressure on Daegu property prices right now is the scarcity of quality housing in top school zones like Suseong-gu, where demand from families seeking educational opportunities remains steady regardless of broader market conditions.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Daegu here.

What is the property price forecast for Daegu in 2026?

How much are property prices expected to increase in Daegu in 2026?

As of early 2026, property prices in Daegu are expected to increase by approximately 2% in nominal terms over the calendar year, representing a modest recovery from the slight declines seen in 2025 but far from the boom conditions some other markets experience.

Forecasts from different analysts range from essentially flat (0%) in a cautious scenario where unsold inventory lingers and macro conditions wobble, to around 4% in an optimistic scenario where interest rates ease and buyer sentiment improves faster than expected.

The main assumption underlying most price increase forecasts for Daegu is that the city will continue absorbing its unsold inventory gradually while the Bank of Korea maintains or slightly eases its current 2.5% policy rate, improving mortgage affordability without triggering a major housing boom.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Daegu.

Which neighborhoods will see the highest price growth in Daegu in 2026?

As of early 2026, the neighborhoods expected to see the highest price growth in Daegu are Suseong-gu's Beomeo-dong, Manchon-dong, Hwanggeum-dong, and Jisan-dong, the Dongdaegu Station corridor including Sincheon-dong in Dong-gu, and select walkable central pockets in Jung-gu.

These top Daegu neighborhoods could see price growth of 3-5% in 2026, outperforming the citywide 2% average due to their combination of education premiums, transit access, and limited new supply compared to peripheral areas still working through oversupply.

The primary catalyst driving expected growth in these Daegu neighborhoods is the ongoing concentration of high-income families seeking quality school districts combined with the connectivity advantage from KTX access and the upcoming Metro Line 4 development.

One emerging neighborhood in Daegu that could surprise with higher-than-expected growth is the area around Hayang, where the December 2024 Metro Line 1 extension has improved accessibility and created potential for value appreciation as commuters discover the area.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Daegu.

What property types will appreciate the most in Daegu in 2026?

As of early 2026, newer apartments in prime Daegu districts are expected to appreciate the most, potentially gaining 3-4% in value, followed by well-located officetels near transit hubs and employment centers that could see 2-3% gains.

The projected appreciation for top-performing apartments in premium Suseong-gu school zones could reach 4% or slightly higher if market conditions favor buyers, driven by their superior liquidity and the persistent demand from families prioritizing education.

The main demand trend driving appreciation for apartments in Daegu is the strong Korean cultural preference for name-brand apartment complexes combined with favorable mortgage financing conditions that banks extend to standardized apartment units over other property types.

The property type expected to underperform in Daegu during 2026 is older villas and low-rise multi-family housing in areas without redevelopment potential, as these suffer from weaker liquidity, limited financing options, and competition from newer supply that buyers prefer.

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.

How will interest rates affect property prices in Daegu in 2026?

As of early 2026, the Bank of Korea's base rate at 2.5% is expected to remain stable or see modest easing, which would support property prices in Daegu by keeping mortgage costs manageable and potentially improving buyer affordability if further cuts materialize.

Current mortgage rates in South Korea range from roughly 3.5% to 4.5% for new loans, and the Bank of Korea has signaled it will take a data-driven approach to any future rate decisions, balancing inflation concerns against the need to support economic growth projected at 1.8% for 2026.

A 1% change in interest rates typically shifts Daegu property affordability by around 8-10% in terms of purchasing power, which matters significantly because Daegu buyers are generally more rate-sensitive than Seoul buyers who face must-own psychology in a supply-constrained market.

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

What are the biggest risks for property prices in Daegu in 2026?

As of early 2026, the three biggest risks for Daegu property prices are the persistent unsold inventory that may not clear fast enough if buyer confidence wavers, a potential macroeconomic shock from trade tensions or export volatility that could undermine consumer sentiment, and the possibility that planned infrastructure projects like Metro Line 4 face delays that erode expected premiums.

The risk with the highest probability of materializing in Daegu is the slow absorption of unsold inventory, as even with government incentives including tax benefits for purchasing unsold units in regional markets, the structural oversupply in certain districts could keep a lid on price recovery through 2026.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Daegu.

Is it a good time to buy a rental property in Daegu in 2026?

As of early 2026, buying a rental property in Daegu can be a good opportunity, but only if you select properties in specific micro-locations with durable rental demand near Dongdaegu Station, major universities, hospitals, or employment centers rather than betting on citywide appreciation.

The strongest argument for buying a rental property in Daegu now is the stabilized pricing after years of decline combined with relatively attractive entry points compared to Seoul, where prices remain 3-4 times higher per square meter, plus the simpler foreign ownership rules that apply outside the Seoul Metropolitan Area.

The strongest argument for waiting is the ongoing unsold inventory that gives you negotiating leverage and the possibility that prices could soften further in oversupplied districts, meaning patience might secure an even better entry point within the next 6-12 months.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Daegu.

You'll also find a dedicated document about this specific question in our pack about real estate in Daegu.

Where will property prices be in 5 years in Daegu?

What is the 5-year property price forecast for Daegu as of 2026?

As of early 2026, property prices in Daegu are expected to grow by approximately 13% in total over the next five years from January 2026 to January 2031, reflecting a gradual market recovery as unsold inventory clears and infrastructure investments mature.

The 5-year forecast range for Daegu property prices spans from about 5% total growth in a conservative scenario where demographic headwinds dominate and oversupply persists, to around 22% in an optimistic scenario where rates ease significantly and infrastructure projects accelerate demand.

This works out to a projected average annual appreciation rate of roughly 2.5% per year compounded over the next five years, which represents modest real returns after accounting for inflation but reasonable growth for a regional Korean city facing population challenges.

The key assumption most forecasters rely on for their 5-year Daegu property predictions is that Korea's overall economic conditions will normalize with GDP growth around 1.8-2% annually, while Daegu successfully absorbs its excess housing inventory and benefits from new infrastructure like Metro Line 4 opening in 2030.

Which areas in Daegu will have the best price growth over the next 5 years?

The three areas in Daegu expected to have the best price growth over the next five years are the Suseong-gu education premium belt including Beomeo-dong, Manchon-dong, Hwanggeum-dong, and Jisan-dong, the Dongdaegu Station corridor benefiting from KTX connectivity and upcoming Metro Line 4, and select central Jung-gu nodes where walkability and amenity scarcity create lasting demand.

These top-performing Daegu areas could see cumulative price growth of 18-25% over five years, significantly outpacing the citywide 13% average because they combine education premiums, transport advantages, and limited new supply that protects values even when the broader market struggles.

This 5-year outlook largely mirrors the shorter-term 2026 forecast because the same fundamental drivers of education quality, transit access, and supply scarcity will continue favoring these areas, though the infrastructure effect from Metro Line 4 becomes more pronounced as the 2030 opening approaches.

The currently undervalued area in Daegu with the best potential for outperformance over five years is the Hayang extension corridor where Metro Line 1 recently expanded, as improved accessibility has not yet been fully priced into properties and further Line 1 extensions toward Geumho are planned for completion by 2030.

What property type will give the best return in Daegu over 5 years as of 2026?

As of early 2026, newer apartments in prime Daegu locations are expected to give the best total return over five years, combining price appreciation of 15-20% with rental yields of 3-4% annually for a total return potential approaching 35-40% over the period.

The projected 5-year total return for top-performing apartments in Suseong-gu school zones could reach 40% or higher when combining capital appreciation with rental income, driven by steady family demand that keeps both purchase prices and rents resilient.

The main structural trend favoring apartments over the next five years in Daegu is the continued preference of Korean households and lenders for standardized apartment complexes, which ensures superior liquidity and financing access compared to villas or detached homes.

For investors seeking a balance of return and lower risk over five years in Daegu, station-adjacent officetels offer the best combination because they provide consistent rental demand from young professionals and students while requiring less capital than full-sized apartments.

How will new infrastructure projects affect property prices in Daegu over 5 years?

The three major infrastructure projects expected to impact Daegu property prices over the next five years are Daegu Metro Line 4 connecting Dong-gu to Suseong-gu with construction beginning in 2026 and opening targeted for 2030, the Metro Line 1 eastern extension to Geumho scheduled for completion by 2030, and the TK New Airport development that will eventually create a regional logistics and business hub.

Properties near completed infrastructure projects in Daegu typically command a price premium of 5-15% compared to similar properties further from transit stations, with the premium building gradually as construction progresses and then stabilizing after opening.

The specific Daegu neighborhoods that will benefit most from these infrastructure developments are Sincheon-dong and the broader Dongdaegu Station area along the Metro Line 4 route, the Hayang to Geumho corridor where Line 1 is extending, and eventually areas along potential airport access routes once TK New Airport planning advances.

How will population growth and other factors impact property values in Daegu in 5 years?

Daegu faces a projected population decline of roughly 0.2-0.5% annually over the next five years, which will limit overall property demand growth and create a structural ceiling on citywide price appreciation that makes micro-location selection critically important.

The demographic shift with the strongest influence on Daegu property demand over five years is the aging population combined with shrinking household sizes, which increases demand for smaller, well-located units near healthcare and transit while reducing demand for larger family homes in peripheral areas.

Migration patterns for Daegu over five years show continued net outflow to the Seoul Metropolitan Area among young professionals, though the city retains families seeking educational value and retirees attracted by lower living costs compared to the capital region.

The property types and areas that will benefit most from these demographic trends in Daegu are compact apartments and officetels near Dongdaegu Station and in Suseong-gu school zones, as these capture both the downsizing trend and the persistent family demand for quality education.

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.

What is the 10 year property price outlook in Daegu?

What is the 10-year property price prediction for Daegu as of 2026?

As of early 2026, property prices in Daegu are expected to grow by approximately 26% in total over the next ten years from January 2026 to January 2036, representing steady but modest appreciation constrained by the city's demographic challenges.

The 10-year forecast range for Daegu property prices spans from roughly 10% total growth in a pessimistic scenario where population decline accelerates and economic conditions stagnate, to around 40% in an optimistic scenario where infrastructure investments successfully reposition the city and migration patterns stabilize.

This works out to a projected average annual appreciation rate of approximately 2.3% per year compounded over the next decade, which means real returns after inflation could be minimal, but specific well-chosen properties in winning corridors could significantly outperform.

The biggest uncertainty factor in making 10-year property price predictions for Daegu is how successfully the city can manage its demographic transition from a shrinking industrial city to a regional hub with sustainable economic drivers that attract and retain working-age residents.

What long-term economic factors will shape property prices in Daegu?

The three long-term economic factors that will shape property prices in Daegu over the next decade are population decline and aging which constrains demand growth, Korea's medium-term GDP growth path which determines income levels and affordability, and the interest rate regime combined with credit policy which affects how households can finance home purchases.

The long-term economic factor with the most positive potential impact on Daegu property values is successful infrastructure development including the TK New Airport and expanded metro network, which could reposition the city as a more attractive regional hub and create new economic opportunities that support housing demand.

The long-term economic factor posing the greatest structural risk to Daegu property values is the projected population decline from approximately 2.4 million today toward 2.2 million by the mid-2030s, which creates persistent downward pressure on aggregate demand that only the most desirable micro-locations can overcome.

You'll also find a much more detailed analysis in our pack about real estate in Daegu.

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.

Source	Why It's Authoritative	How We Used It
Korea Real Estate Board (REB) - National Survey	Government-backed market monitor producing official price-trend data used across Korea.	We used it as our backbone for direction and percentage changes in prices. We cross-checked it against transaction-based evidence.
Korea Real Estate Board - Main Portal	Official publishing home for REB's market monitoring outputs and methodologies.	We used it to confirm housing type scope and align terminology with Korean market categories.
MOLIT Real Transaction Price System	Ministry of Land's official system for actual transaction prices, the hardest ground truth in Korea.	We used it to anchor price levels and sanity-check neighborhood claims with actual closed deals.
KB Land Data Hub	KB is a reference private index in Korea widely used in finance and banking.	We used it to triangulate price levels and price-per-area metrics that consumers and banks reference.
Bank of Korea - Monetary Policy 2026	Central bank's own guidance on rates and stability for 2026.	We used it to frame the interest-rate scenario affecting mortgage affordability and buyer demand.
KOSIS (Korean Statistical Information Service)	Official national statistics platform used by government and researchers.	We used it for macro context that moves housing demand including population and labor indicators.
Statistics Korea - Population Projections	Official publisher of population projection outputs that shape long-run housing demand.	We used it to ground Daegu's demographic headwinds in the 5-10 year outlook.
BIS Residential Property Price Statistics	Global standard-setter for cross-country property-price statistics and methodology.	We used it to sanity-check whether Korea assumptions fit the global cycle for real versus nominal moves.
FRED - Korea Residential Property Prices	Easy-to-verify window into BIS series with transparent sourcing and downloads.	We used it for long-run context on how unusual current moves are historically.
OECD Economic Outlook - Korea	Top-tier international organization with consistent forecasting frameworks.	We used it to frame the 2026 macro backdrop and translate growth direction into housing demand.
IMF World Economic Outlook (Oct 2025)	Reference for global macro assumptions and scenario risks.	We used it to anchor global conditions that feed Korea's trade, growth, and inflation path.
Korea Times - TK New Airport	Major national newspaper report tied to MOLIT's official plan announcement.	We used it to identify corridors that could get multi-year demand premiums from infrastructure.
International Railway Journal - Daegu Metro	Specialized publication covering rail infrastructure plans with technical detail.	We used it to track Metro Line 4 development and assess which corridors will benefit.
Daegu Metro - Wikipedia	Comprehensive summary of metro network with recent updates on extensions and plans.	We used it to verify construction timelines and station locations for Line 1 and Line 4.
Global Property Guide - South Korea	International property analysis platform with consistent methodology across markets.	We used it to contextualize Korea's regional price divergence and compare Daegu to other cities.
Trading Economics - South Korea Interest Rate	Financial data aggregator with real-time central bank rate tracking.	We used it to verify current Bank of Korea base rate and policy direction statements.
Seoul Economic Daily - Unsold Homes	Korean business newspaper with detailed regional real estate coverage.	We used it to quantify Daegu's unsold inventory problem and its impact on market sentiment.
Asia Business Daily - Daegu Housing Policy	Korean media outlet covering local government housing initiatives.	We used it to track Daegu City's policy responses to unsold inventory and market stabilization efforts.