Is it worth it buying property in Daegu in 2025?

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

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 South Korea. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the South Korean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Seoul, Busan, and Daegu. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties are available to buy in Daegu in 2025?

Daegu's property market offers five main types of residential properties, each catering to different lifestyle needs and budgets.

Apartments dominate the market and represent the most common property type available. These range from compact studios perfect for singles to large multi-bedroom units suitable for families. You'll find both high-rise and mid-rise apartment complexes throughout the city, with the newest developments concentrated in central and emerging districts. Most apartments come with modern amenities and are part of larger residential complexes.

Villas provide a middle ground between apartments and single-family homes. These low-rise residential buildings typically have 2-5 floors and offer larger living spaces with more privacy than standard apartments. Villas are less common than apartments but can be found in suburban areas and upmarket neighborhoods, making them popular with families seeking more space.

Officetels represent a uniquely Korean property type that combines office and residential space in one unit. These mixed-use properties are particularly popular among young professionals, singles, and investors looking for rental income opportunities. You'll find officetels concentrated in business districts and near major transport hubs, offering convenience for both work and living.

Single-family houses and townhouses are the least common but offer the most space and privacy. These properties are primarily located in suburban areas or newly developed districts and appeal to families wanting traditional housing with yards and more independence.

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

Is it better to buy or rent in Daegu right now?

The decision between buying and renting in Daegu depends on your timeline, financial situation, and long-term plans, but current market conditions favor buyers in many scenarios.

Buying in Daegu offers significant advantages in 2025. Property prices are substantially lower than Seoul, with average costs around $4,650 per square meter compared to Seoul's much higher rates. The market has stabilized after recent declines, creating an attractive entry point for buyers. Rental yields are relatively higher due to lower purchase prices, making investment properties more viable. Additionally, you'll benefit from steadier long-term value growth as Daegu continues developing its infrastructure.

Renting remains attractive for those seeking flexibility or testing the market. Rental prices are very affordable, with monthly costs 24-25% lower than Seoul. This option works well for short-term residents, those exploring different neighborhoods, or people uncertain about long-term commitment to the city. The upfront costs are significantly lower, requiring only security deposits rather than substantial down payments.

Current market conditions slightly favor buying for serious long-term residents and investors. Prices have stabilized after declining, and signs of recovery are emerging. New infrastructure projects, including subway line extensions, are expected to boost future demand and property values.

For long-term residents planning to stay 3-5 years or more, buying makes financial sense given the affordable entry prices and potential for appreciation. For short-term stays or those prioritizing flexibility, renting remains the practical choice.

What are the average property prices in Daegu today?

Property prices in Daegu have experienced significant changes over recent years, with 2025 presenting particularly attractive pricing for buyers.

Year	Average Price per m² (USD)	Average Apartment Price (USD)	Year-over-Year Change
2023	$5,900	$242,000	+1.4%
2024	$5,800	$234,000	+7.1%
2025 (Current)	$4,650	$227,000	-3.9%
2026 (Forecast)	$4,800-$5,000	$235,000-$245,000	+3-5%
2027 (Forecast)	$5,100-$5,300	$250,000-$260,000	+4-6%

As of June 2025, the average price per square meter in Daegu sits at approximately $4,650, representing a notable decrease from previous years. The average apartment price has dropped to around $227,000, making Daegu one of the most affordable major cities in South Korea for property investment.

The recent price decline of 3.9% in 2024 was primarily driven by oversupply conditions and reduced demand as younger residents migrated to larger cities for employment opportunities. However, this correction has created an excellent entry point for buyers, with prices now reflecting more realistic market values.

Forecasts for the next few years suggest modest recovery, with experts predicting 3-5% annual growth as the market absorbs excess inventory and new infrastructure projects stimulate demand. The planned subway line extensions and government investment in the region are expected to provide underlying support for future price appreciation.

What are the current real estate market trends in Daegu?

Daegu's real estate market in 2025 is characterized by stabilization following a period of adjustment, with several positive indicators emerging for future growth.

The oversupply situation that dominated 2023-2024 is gradually improving. The city experienced a high number of unsold units, but absorption rates are increasing as developers adjust pricing and marketing strategies. Contract rates for new apartment complexes have begun rising, indicating renewed buyer confidence in the market.

Demand patterns show mixed signals but with encouraging underlying trends. While some younger residents continue moving to Seoul and Busan for career opportunities, government infrastructure investment is attracting new interest. The expansion of subway line 4 and other transportation improvements are expected to enhance connectivity and drive future demand growth.

The rental market demonstrates stronger fundamentals than the sales market. Rental yields in Daegu exceed those in Seoul, ranging from 1.0% to 1.6% gross yields depending on location. Both jeonse (large deposit, low rent) and monthly rental options remain popular, providing flexibility for different tenant preferences.

Investment sentiment is gradually improving as prices stabilize. International and domestic investors are beginning to view Daegu as an attractive alternative to overpriced Seoul and Busan markets. The combination of affordable entry prices, decent rental yields, and future infrastructure development creates a compelling investment narrative.

As we reach mid-2025, market indicators suggest the worst of the price declines are behind us, with stabilization leading toward modest recovery in the coming years.

How does the buying process in South Korea work for foreigners?

The property buying process in South Korea is straightforward for foreigners, with clear legal procedures and reasonable requirements.

1. **Property Search and Selection**: Begin by finding properties through trusted local agencies, online platforms, or international real estate services. Local agents near expat areas are typically familiar with foreign buyer needs and can provide English-language support.2. **Due Diligence and Legal Check**: Verify the property's legal status, ownership history, and any restrictions. Check for outstanding debts, construction permits, and building regulations. This step is crucial for avoiding future legal complications.3. **Preliminary Agreement and Deposit**: Sign a preliminary purchase agreement and pay a 10% deposit. This contract outlines payment schedules, completion dates, and legal terms. The deposit secures the property while final arrangements are made.4. **Government Approvals**: If the property is in a restricted area (near military installations or certain zones), obtain government approval. Register the intended purchase with the local district office, which typically takes 2-4 weeks.5. **Final Payment and Contract**: Pay the remaining balance and sign the final purchase contract. This includes the official transfer of ownership and all associated legal documentation.6. **Property Registration**: Register the property with the Supreme Court's Registry Office and pay all applicable taxes and fees. This final step legally establishes your ownership.

Key costs include agent fees (0.3-0.9%), acquisition tax (1-3%), registration tax (0.2-0.8%), notary and legal fees ($1,000-$3,000), and VAT (10% for new properties).

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

Where can I find available properties in Daegu?

Finding properties in Daegu requires using a combination of local expertise and online resources to access the best available options.

Local real estate agencies provide the most comprehensive access to available properties. Offices located near expat communities and military areas (such as near Camp Walker) are particularly familiar with foreign buyers' needs and often have English-speaking staff. These agencies have access to multiple listing services and can arrange viewings efficiently.

Online platforms offer convenient browsing and initial market research. Bamboo Routes specializes in investment analysis and market data for Daegu properties, providing detailed insights for serious buyers. Luxury Abode focuses on high-end and luxury property listings throughout the city. International platforms like Airbnb and Booking.com can help identify properties currently used for short-term rentals that might be available for purchase.

Market data platforms including Numbeo, Global Property Guide, and InvestAsian provide valuable pricing information and market trends to inform your property search and negotiation strategy.

For the most effective property search, combine multiple approaches. Start with online platforms to understand market pricing and available neighborhoods, then work with local agencies to access exclusive listings and arrange viewings. The combination ensures you see the full range of available properties while benefiting from local expertise.

Network within expat communities, as word-of-mouth recommendations often lead to the best property deals and most reliable agents in the city.

What kind of property can I get for different budgets?

Your budget determines both the type and location of property available in Daegu, with options spanning from starter units to luxury homes.

Budget Range	Property Type	Typical Features	Best Locations
$100,000	Studio/Small 1-bedroom	25-35m², Basic amenities	Dong-gu, Outskirts
$200,000	1-2 bedroom apartment	45-60m², Modern building	Buk-gu, Dong-gu central
$300,000	2-3 bedroom apartment	70-85m², Premium amenities	Jung-gu, Nam-gu
$400,000	Large apartment/Villa	90-110m², High-end finishes	Nam-gu, Suseong-gu entry
$500,000+	Luxury apartment/Townhouse	120m²+, Premium location	Suseong-gu, Premium areas

With $100,000, you can purchase a studio or small one-bedroom apartment in areas like Dong-gu or on the city outskirts. These properties typically offer 25-35 square meters of space with basic amenities and represent excellent entry-level investment opportunities.

A $300,000 budget opens access to modern 2-3 bedroom apartments in central and up-and-coming districts like Jung-gu and Nam-gu. These properties usually feature 70-85 square meters, modern amenities, and good connectivity to city centers and transportation.

With $500,000, you can acquire large apartments (3-4 bedrooms) in prestigious Suseong-gu, luxury officetels in prime business districts, or townhouses in desirable neighborhoods. These properties offer 120+ square meters, premium finishes, and access to the best schools and amenities.

The current market conditions make each budget tier particularly attractive, as prices have adjusted downward while quality and amenities remain high.

Which neighborhoods in Daegu are the best to buy in?

Daegu's neighborhoods offer distinct characteristics and investment potential, catering to different budgets, lifestyles, and investment strategies.

For affordable and up-and-coming areas, Dong-gu stands out as popular with young families and first-time buyers. The district offers affordable housing options with ongoing new developments that suggest future appreciation potential. Buk-gu is gaining investor interest for its value proposition and expected future growth as infrastructure expands.

Prime expat-friendly neighborhoods include Nam-gu, which blends traditional Korean charm with modern amenities. This district hosts a strong expat and local community mix, with rising property prices reflecting its growing desirability. Jung-gu appeals to young professionals with its vibrant cultural scene and proximity to business districts, making it ideal for both living and rental investment.

For luxury property buyers, Suseong-gu represents the most prestigious area in Daegu. The district features top schools, beautiful parks, luxury apartment complexes, and high-end amenities. Properties here command premium prices but offer the best potential for long-term value retention and appreciation.

Dalseong-gun offers spacious homes and land for those seeking suburban living with future development potential. This area appeals to families wanting more space and buyers interested in longer-term appreciation as the city expands.

Each neighborhood provides different investment profiles, from affordable entry points with growth potential to established luxury areas with stable value retention.

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 cost of living like in Daegu compared to other Korean cities?

Daegu offers exceptional value for money, with living costs significantly lower than Seoul and moderately lower than Busan, making it attractive for both residents and property investors.

Daegu is 24-25% less expensive than Seoul overall, representing substantial savings across all major expense categories. Compared to Busan, Daegu is approximately 6% less expensive, offering moderate but meaningful cost advantages over South Korea's second-largest city.

Monthly living costs for a single person average around $995 in Daegu, compared to $1,334 in Seoul and $1,060 in Busan. For families, monthly expenses average $2,813 in Daegu versus $3,862 in Seoul and $2,838 in Busan. These differences compound significantly over time, making Daegu particularly attractive for long-term residents.

Housing costs show the most dramatic differences. A one-bedroom apartment in downtown Daegu rents for approximately $332 monthly, compared to $754 in Seoul and $392 in Busan. This represents a 56% savings compared to Seoul and 15% savings compared to Busan.

Food, transportation, and utilities all cost notably less in Daegu. Restaurant meals, grocery shopping, public transportation, and basic utilities typically cost 20-30% less than Seoul prices. These savings make Daegu particularly attractive for retirees, remote workers, and families seeking affordable living without sacrificing urban amenities.

The lower cost of living also supports stronger rental yields for property investors, as tenants can afford decent accommodations while owners benefit from lower acquisition costs.

What is life like for expats living in Daegu?

Daegu provides a welcoming environment for expats, combining urban conveniences with a more relaxed pace than Seoul, making it increasingly popular among international residents.

The expat community in Daegu is active and well-established, particularly around universities, military bases (like Camp Walker), and international schools. English-speaking services including realtors, medical facilities, and business services are readily available. Expat groups organize regular social events, cultural activities, and support networks that help newcomers integrate smoothly.

Lifestyle in Daegu offers a slower pace than Seoul while maintaining urban amenities. The city features an excellent café culture, diverse food scene, and easy access to mountains and parks for outdoor activities. Public transportation is efficient and affordable, with subway and bus systems connecting all major areas. The city strikes an ideal balance between modern convenience and traditional Korean culture.

Safety levels in Daegu are excellent, with very low crime rates and a generally welcoming attitude toward foreigners. Expats report feeling secure walking alone at night and appreciate the helpful nature of local residents. The city maintains the safe, orderly environment South Korea is known for.

Integration opportunities abound through cultural events, language exchange programs, and community activities. Many expats report positive experiences building relationships with local residents, though basic Korean language skills enhance the experience significantly. The city offers numerous Korean language classes and cultural integration programs.

The combination of affordability, safety, community, and lifestyle amenities makes Daegu particularly attractive for expats seeking an authentic Korean experience without the intensity and cost of Seoul.

What about long-term rental investment potential?

Long-term rental investment in Daegu offers solid returns with manageable risks, particularly attractive given current low property acquisition costs.

Target areas for rental investment include Dong-gu and Buk-gu for affordable properties with high demand from young families and students. These districts offer entry-level pricing with steady rental demand. Nam-gu and Jung-gu appeal to professionals, expats, and locals seeking central locations, commanding higher rents while maintaining strong occupancy rates.

Typical tenants include young professionals starting their careers, university students, military and civilian expats, and local families seeking affordable housing. The diverse tenant base provides stability and reduces vacancy risks compared to markets dependent on single demographics.

Rental yields in Daegu currently range from 1.0% to 1.6% gross annual returns. City center properties typically yield around 1.6%, while properties outside the center average 1.0%. While these yields are higher than Seoul, they remain modest due to property prices relative to rental rates.

Rental income expectations vary by property type and location. A one-bedroom apartment in downtown Daegu typically rents for 534,000 KRW monthly (approximately $400), while a three-bedroom downtown unit commands around 1.65 million KRW monthly (approximately $1,230).

The rental market benefits from Daegu's role as an educational and business center, providing steady demand from students, young professionals, and expat communities. Lower living costs compared to Seoul make Daegu attractive to tenants, supporting occupancy rates.

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

What about short-term rental opportunities like Airbnb?

Short-term rental investment in Daegu presents opportunities for higher yields than traditional rentals, but requires careful attention to regulations and location selection.

Legal requirements for short-term rentals include operating in designated zones and completing registration with local authorities. Compliance with local regulations is mandatory, and some apartment buildings or homeowner associations restrict Airbnb operations. Always verify building policies and obtain necessary permissions before investing in short-term rental properties.

The best locations for short-term rentals include areas near Dongdaegu Station for convenient transportation access, Jung-gu for proximity to cultural sites and nightlife, and Suseong-gu for luxury accommodations near parks and upscale amenities. Properties close to universities, business districts, or tourist attractions typically perform better.

Tourist preferences favor central locations with easy transportation access, modern amenities, and proximity to shopping and dining options. Business travelers appreciate locations near commercial districts and conference facilities, while leisure tourists prefer cultural and entertainment areas.

Income potential for short-term rentals can exceed traditional rental yields by 10-30% when well-managed, particularly during festivals, conferences, or peak tourist seasons. However, occupancy rates fluctuate more than long-term rentals, requiring active management and marketing to maintain profitability.

Success factors include professional photography, competitive pricing, excellent guest communication, and maintaining high cleanliness standards. Property management companies specializing in short-term rentals can handle day-to-day operations for investors preferring hands-off approaches.

The growing business travel market and increasing domestic tourism in South Korea support demand for quality short-term accommodations in Daegu.

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. Duffel Bag Spouse - Daegu Off Post Housing Guide
2. BambooRoutes - Daegu Real Estate Market
3. BambooRoutes - Daegu Area Guide
4. Luxury Abode - Daegu Real Estate
5. BambooRoutes - Daegu Property Investment
6. Living Cost - Daegu vs Seoul
7. Numbeo - Property Investment in Daegu
8. Global Property Guide - South Korea Price History
9. BambooRoutes - South Korea Real Estate Trends
10. Life Abroad Hero - South Korea Real Estate Guide