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Daegu's property market in 2025 shows mixed signals with current apartment prices ranging from ₩6.7-9.9 million per square meter.
(The city faces oversupply challenges with unsold inventory doubling year-over-year, yet infrastructure developments like the new airport and subway extensions provide long-term growth potential with forecasted annual price increases of 2-5% through 2027.)If you want to go deeper, you can check our pack of documents related to the real estate market in South Korea, based on reliable facts and data, not opinions or rumors.
Daegu's residential property market in 2025 presents a buyer's market with significant oversupply and modest price declines.
While current conditions favor purchasers, planned infrastructure projects suggest potential value appreciation in the medium term.
| Market Indicator | Current Status (September 2025) | Trend vs Previous Year |
|---|---|---|
| Average Apartment Price | ₩6.7-9.9M per m² (USD $4,650-$7,200) | -3.9% decline from 2024 |
| Rental Yield | 1.0-1.6% gross | Higher than Seoul but below national average |
| Unsold New Homes | 3,824 units | +134% increase from June 2024 |
| Price Forecast (2025-2027) | +2-5% annually | Recovery expected after current correction |
| Foreign Buyer Activity | Very low share | Minimal participation vs Seoul |
| Time to Sell | Several months | Lengthening due to oversupply |
| New Supply Pipeline | Several thousand units planned | Supply exceeds current demand |
What's the current average price per square meter for apartments and houses in Daegu right now?
Daegu apartments currently average between ₩6.7 and ₩9.9 million per square meter, which translates to approximately USD $4,650 to $7,200 per square meter as of September 2025.
City center apartments command premium prices at around ₩9.9 million per square meter, while properties outside the central areas trade for ₩6.7 to ₩8.3 million per square meter. New and high-end developments in prime locations fetch the highest prices within this range.
Houses outside central areas typically trade at the lower end of the price spectrum. The significant price variation reflects Daegu's diverse neighborhoods, with proximity to business districts, transportation hubs, and amenities driving the premium pricing in central locations.
These current prices represent a substantial shift from the market conditions of previous years. The pricing structure shows clear geographical patterns, with the most expensive properties concentrated in Daegu's urban core where demand for convenience and accessibility remains strongest.
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How have property prices in Daegu changed over the past 5 years in terms of annual percentage growth?
Daegu property prices have experienced significant volatility over the past five years, with an overall growth of approximately 27% from 2019 to 2025.
The market saw prices rise from the ₩5-6 million per square meter range in 2019 to the current ₩6.7-9.9 million per square meter levels. However, this growth has been uneven, with annual changes ranging from a decline of -3.9% in recent periods to positive growth of +7.1% in 2023.
The most recent data shows a concerning trend, with 2024 marking a period of decline at -3.9% annually. This represents a significant shift from the stronger performance in 2023, when the market achieved its peak growth rate of +7.1%.
The five-year average annual growth works out to approximately 5.4% per year, but this masks the considerable year-to-year variation that has characterized the Daegu market. The market has proven more volatile than many investors anticipated, particularly in the post-2023 period.
What's the forecasted price growth or decline for residential property in Daegu over the next 1 to 3 years?
Property analysts forecast modest positive growth of 2-5% annually for Daegu residential properties through 2027, following the current market stabilization in 2025.
The forecast reflects expectations of a gradual market recovery as the current oversupply situation resolves itself over the next 12-24 months. Market analysts anticipate that absorption of existing inventory will create more balanced supply-demand dynamics by late 2025 or early 2026.
This projected growth rate is significantly slower than Seoul's market, reflecting Daegu's position as a secondary city with different demographic and economic dynamics. The recovery pattern suggests a measured rebound rather than a dramatic price surge.
The forecast assumes that planned infrastructure developments will provide underlying support for property values, while the resolution of current oversupply issues will remove downward pressure on prices. Most market observers expect 2025 to mark the bottom of the current cycle.
How many new housing units are expected to be built in Daegu in the next 12 months, and how does that compare with demand?
Daegu faces a significant supply-demand imbalance, with several thousand new units planned for completion in the next 12 months while demand remains subdued due to population outmigration and reduced household formation.
Major new developments are launching throughout 2025, including significant projects like the Beomeo 2nd I-Park with 490 units. Monthly new unit releases typically range from 755 to over 900 units, indicating a substantial pipeline of new supply coming to market.
The supply clearly exceeds current demand, as evidenced by the city's housing absorption rate declining significantly. Net outmigration to the Seoul metropolitan area continues to drain potential buyers from the local market, while new household formation rates remain below the pace of new construction.
This oversupply situation is expected to persist through 2025, with market balance potentially improving in 2026-2027 as the development pipeline moderates and economic conditions stabilize. The current supply excess represents both a challenge for developers and an opportunity for buyers seeking favorable terms.
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What's the current rental yield in Daegu for apartments and houses, and how does it compare with the national average?
Rental yields in Daegu currently range from 1.0% to 1.6% gross for apartments, which is higher than Seoul's sub-1% levels but remains below typical national averages for real estate investments.
These yields make Daegu more attractive for buy-to-rent investors compared to major metropolitan areas like Seoul, where rental yields have compressed to below 1% due to high property prices relative to rental income. However, the yields remain low by international real estate investment standards.
National averages for real estate investments typically range from 2-4% in other markets, making Daegu's 1.0-1.6% yields relatively modest. The yield calculation reflects both the current property price levels and the rental income potential in the local market.
House rental yields generally align with apartment yields in the 1.0-1.6% range, though specific properties in prime locations or with unique characteristics may achieve higher or lower returns. The compressed yield environment reflects South Korea's overall low-yield real estate investment climate.
How many unsold new homes are currently on the market in Daegu, and how does this figure trend year over year?
Daegu has 3,824 unsold new homes as of June 2025, representing a dramatic 134% increase from the 1,635 units recorded in June 2024.
This figure represents the highest number of unsold move-in-ready homes among all major South Korean cities, highlighting the severity of Daegu's current oversupply situation. The more than doubling of unsold inventory within a single year indicates rapidly deteriorating market absorption conditions.
The year-over-year trend shows accelerating inventory accumulation, with unsold units growing from manageable levels to concerning oversupply in just 12 months. This trend reflects both increased completions of new developments and reduced buyer demand in the local market.
The concentration of unsold inventory in Daegu compared to other major cities suggests city-specific challenges rather than a nationwide phenomenon. This inventory overhang will likely require 12-24 months to absorb under current market conditions, assuming no significant acceleration in new completions.
What's the current average time it takes to sell a property in Daegu, and how does this compare with last year?
The average time to sell properties in Daegu has lengthened significantly compared to last year, now extending to several months for new units, though specific days-on-market figures for the city are not publicly available.
The surge in unsold inventory and softening demand conditions clearly indicate that selling times have extended beyond previous norms. The doubling of unsold new homes inventory suggests that properties are taking substantially longer to find buyers than in 2024.
Market conditions throughout metropolitan South Korea show selling times averaging several months for new units, notably above last year's levels due to widespread oversupply issues. Daegu's situation appears more pronounced than the national average given its inventory accumulation.
The lengthening selling times reflect both the oversupply situation and buyer caution in the current market environment. Sellers are increasingly finding themselves competing in a market with abundant choice for buyers, extending negotiation periods and time-to-close.
What are the mortgage interest rates available in South Korea right now, and how do they affect affordability in Daegu?
South Korea's bank base rate currently stands at around 2.5% as of 2025, with effective mortgage rates typically running higher than this benchmark rate.
The relatively lower interest rate environment is providing some stimulus to housing demand, making mortgage financing more accessible for potential buyers. However, the impact on Daegu's market remains limited due to oversupply conditions and modest population growth dynamics.
Affordability in Daegu has improved marginally due to both lower rates and recent price corrections, but the fundamental market dynamics of oversupply continue to limit upward pressure on property prices. The favorable financing conditions are not sufficient to overcome the supply-demand imbalance.
For buyers, the combination of lower mortgage rates and current market conditions creates favorable purchasing opportunities. The financing environment supports buyer activity, though the abundance of available properties means buyers can be selective and negotiate favorable terms beyond just financing costs.
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What's the current population growth rate in Daegu, and how is this expected to impact housing demand in the next 5 years?
Daegu's population growth rate is currently flat to slightly negative, with significant net outmigration to the Seoul metropolitan area constraining local housing demand growth.
The city faces ongoing challenges with residents leaving for opportunities in Seoul and other major metropolitan areas, creating a demographic headwind for the local property market. This outmigration trend particularly affects younger demographics who would typically drive new household formation and housing demand.
Over the next five years, population growth is expected to remain flat to slightly negative, which will fundamentally limit housing demand growth regardless of other market factors. This demographic constraint represents a significant structural challenge for the Daegu property market.
The population dynamics suggest that housing demand will primarily come from household formation among existing residents rather than new residents moving to the city. This creates a more constrained demand environment compared to growing cities and limits the potential for rapid property appreciation driven by population growth.
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What percentage of household income do Daegu residents spend on housing on average, and how is this evolving?
Daegu households typically spend 24-28% of their income on housing costs, which aligns with patterns seen in other urban South Korean markets.
This housing cost burden has remained relatively stable or risen slightly in recent years as property prices climbed faster than wage growth through the market's growth phase ending in 2023. However, recent price corrections may be moderating this trend.
The 24-28% range represents a manageable but significant portion of household budgets, though it varies considerably based on property type, location, and household income levels. Higher-income households often spend a lower percentage, while middle-income families may approach or exceed the upper end of this range.
The evolution of this ratio will likely depend on both property price trends and wage growth in Daegu's economy. Current market conditions with modest price declines may provide some relief for new buyers, while existing homeowners benefit from lower mortgage rates on refinancing.
What are foreign buyers' activity levels in Daegu, in terms of share of total transactions or property purchases?
Foreign buyer activity in Daegu's property market remains very low, with minimal participation compared to Seoul's market where international investors have a more noticeable presence.
The foreign buyer share represents a tiny fraction of total transactions, as most property purchases are conducted by domestic buyers. This contrasts sharply with Seoul, where foreign investment, particularly from Chinese and other international buyers, has played a more significant role in certain market segments.
Several factors contribute to the limited foreign interest in Daegu, including the city's secondary status, language barriers, limited international connectivity, and preference for Seoul's more liquid and internationally recognized property market among foreign investors.
The minimal foreign buyer presence means that Daegu's market dynamics are driven almost entirely by local economic conditions, population trends, and domestic policy changes. This creates both stability from reduced external volatility and limitations on demand from international capital flows.
What major infrastructure or government development projects are planned for Daegu that could increase property values in the short and medium term?
Daegu has several significant infrastructure projects planned that could provide support for property values, with the Daegu-Gyeongbuk New Integrated Airport targeting completion by 2030 as the most substantial development.
| Project | Timeline | Expected Impact |
|---|---|---|
| Daegu-Gyeongbuk New Integrated Airport | 2030 completion target | Major connectivity improvement, regional economic boost |
| Subway Line 4/EXCO Line Extensions | Ongoing development | Enhanced urban mobility, property value uplift near stations |
| Highway System Improvements | Multi-year development | Better regional connectivity, reduced travel times |
| Future-Related Business Clusters | Medium-term development | Economic diversification, job creation |
| Urban Redevelopment Zones | Various phases | Neighborhood revitalization, modern housing stock |
These infrastructure investments are expected to provide modest but steady support for property values, particularly in neighborhoods near new subway stations or the future airport location. The improvements should enhance Daegu's economic competitiveness and connectivity to other major cities.
The airport project represents the most significant long-term catalyst, potentially attracting business investment and improving the city's profile as a regional hub. However, the timeline extending to 2030 means immediate property market impacts will be limited.
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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 property market in 2025 presents a buyer's opportunity with current oversupply conditions creating favorable negotiating positions and competitive pricing.
While short-term challenges persist, planned infrastructure developments and eventual supply-demand rebalancing suggest potential for modest value appreciation in the 2026-2027 timeframe.