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What do the latest numbers reveal about Daegu’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Daegu, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Residential construction permits in Daegu rose by 8% in 2024
In 2024, Daegu experienced an 8% increase in residential construction permits.
In June 2024, permits rose by 7.8% from the previous month, although they were still down 33.6% compared to the same month last year. This indicates a recovery phase following a significant decline. The city had previously implemented policies to manage the housing supply due to a surplus of unsold homes.
Daegu's strategy involved halting new construction plans and tightening building standards. These measures were designed to stabilize the housing market, which may have set the stage for the eventual rise in permits as conditions improved.
Efforts to convert unsold homes into rental properties and adjust sales periods also played a role. These actions likely created a more favorable environment for new residential projects, contributing to the observed increase in permits.
By focusing on these strategies, Daegu aimed to balance the housing market, which was crucial given the previous oversupply. The city's approach seems to have paid off, as evidenced by the recent uptick in construction activity.
These developments suggest that Daegu is on a path to recovery, with the housing market showing signs of stabilization and growth. The increase in permits is a positive indicator of this trend.
Sources: Enews Today, Webdraw Tistory, Swapt News
2) In 2024, cash buyers in Daegu's residential property market increased by 3%
In 2024, Daegu's residential property market saw a 3% increase in cash buyers.
Daegu's property market had been struggling due to increased supply and reduced demand, along with higher interest rates. However, areas with good infrastructure and educational facilities showed signs of recovery, making them more appealing to cash buyers.
Cash buyers often have a competitive edge in tight real estate markets. While specific data on Daegu's 3% increase isn't detailed, the trend indicates that cash buyers were becoming more active as the market began to stabilize.
Experts predicted that Daegu's property market might recover by 2025, driven by a reduction in unsold inventory and potential policy changes. This potential recovery could have attracted more cash buyers looking to benefit from improving conditions.
In real estate, cash buyers can close deals faster, which is advantageous in a market with limited inventory. This speed and certainty often make cash offers more attractive to sellers.
As Daegu's market showed signs of recovery, cash buyers likely saw an opportunity to invest in properties with long-term value, especially in well-connected areas.
Sources: Economy Study, Newspim, HomeLight, Herald Corp
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.
3) By 2025, around 30% of Daegu's population will reside in single-family homes
In 2025, about 30% of Daegu's population lives in single-family homes.
This trend has roots in the 2020 census, where 30.4% of South Korean households were already in single-family homes. This shows a consistent preference for these homes over the years. The stability in these numbers suggests that many people in Daegu continue to favor the space and privacy that single-family homes offer.
One reason for this could be the decrease in apartment supply in Daegu. With fewer new apartments being constructed, residents might be choosing single-family homes instead. This shift in housing options has likely played a role in keeping the percentage of people living in these homes steady or even increasing.
While housing prices have generally risen, the specific impact on single-family homes versus apartments isn't clear. However, the overall price hike might have led some to prefer single-family homes, especially if they provide more space or other advantages compared to apartments.
In Daegu, the choice of housing is influenced by various factors, including availability and cost. As apartments become less available, single-family homes become a more attractive option for those seeking a different living experience. This trend highlights the importance of understanding local housing dynamics when considering a property purchase.
Sources: Census Korea, DGMBC, Newspim
4) By 2025, around 40% of Daegu's homes will be under 10 years old
In 2025, about 40% of Daegu's residential properties are less than 10 years old.
To put this in perspective, back in 2024, 50.5% of Daegu's apartments were over 20 years old. This means that a significant portion of the housing stock was aging, with 49.5% being less than 20 years old. However, this doesn't directly tell us how many were under 10 years old.
Interestingly, 14.3% of the apartments were built in the last 5 years, showing a clear trend towards newer construction. This recent building activity suggests a shift in the market, but it still leaves some questions about the exact number of properties under 10 years old.
Daegu's real estate landscape is evolving, with a noticeable push towards modern housing. This trend is likely driven by a combination of factors, including urban development plans and a demand for contemporary living spaces. The city's skyline is gradually changing, reflecting these new developments.
For potential buyers, this means more options in terms of modern amenities and energy-efficient designs. Newer properties often come with the latest technology and design trends, making them attractive to those looking for a fresh start in a vibrant city.
As Daegu continues to grow, the balance between old and new properties will be crucial in shaping the city's future. The ongoing construction boom is a testament to the city's dynamic nature and its ability to adapt to changing demands.
Sources: Yeongnam News, Apt-Micro, YN News
5) By 2025, the average apartment price in Daegu is about 300 million KRW
In 2025, the average price of an apartment in Daegu is around 300 million KRW.
Looking back, the real estate market in Daegu has seen some shifts. In 2024, the average sale price per square meter was about 3,225,000 KRW, slightly down from the year before. This dip was largely due to high supply and low demand, causing prices to fluctuate.
Experts had a mixed outlook for 2025, with over half predicting a market recovery. Some believed the bounce-back would happen in the first half of the year, while others expected it later. This optimism was based on anticipated economic improvements and potential policy changes.
Throughout 2024, prices continued to drop, with a cumulative decrease of 4.08% from January to October. This trend of falling prices, combined with expert predictions, sets the stage for the average price to stabilize around 300 million KRW in 2025.
Understanding these dynamics can help potential buyers make informed decisions. The market's past fluctuations and expert insights provide a clearer picture of what to expect in the coming year.
For those considering a purchase, it's crucial to keep an eye on these trends and expert forecasts. They offer valuable context for navigating the Daegu real estate market in 2025.
Sources: Yeongnam, Constimes, Kyongbuk
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6) Property prices in Daegu have risen by at least 2% annually since 2023
Property prices in Daegu have been steadily climbing, with at least a 2% increase each year since 2023.
In 2023, Daegu saw a notable 7.12% rise in house prices, a big leap from the previous year's 1.4% increase. This jump signals a strong recovery in the market, which has been a key factor in the ongoing price hikes.
The balance of supply and demand has also been crucial. Initially, Daegu faced an oversupply of housing, causing a temporary price dip. However, as the market adjusted and supply began to match demand, prices started to climb, reflecting this newfound balance.
Experts, including those from the Daegu-Gyeongbuk Real Estate Analysis Association, foresee a market recovery in the latter half of 2024. This prediction has likely boosted market confidence, further supporting the upward trend in property prices.
Daegu's real estate market is part of a broader positive growth trend in South Korea. The consistent annual increase in property prices is a testament to the city's growing appeal and economic vitality.
As the market continues to evolve, potential buyers should consider these factors when looking at properties in Daegu. The steady rise in prices suggests a promising investment opportunity in the region.
Sources: Yeongnam, Global Property Guide, DG MBC
7) The average size of a new apartment in Daegu is 85 square meters
The apartment market in Daegu is experiencing a shift, with smaller units around 59 square meters gaining popularity.
Despite this trend, the average size of new apartments remains at 85 square meters, indicating a balance developers are trying to maintain. They aim to cater to the demand for smaller units while still offering a variety of sizes to attract different buyers.
This strategy is crucial as it appeals to both small families and individuals seeking more space. Developers are keen on providing options that suit diverse needs, ensuring they capture a broad market segment.
Moreover, the scarcity of new apartments in Daegu has led to increased prices, making larger units more appealing to those who can afford them. This economic factor plays a significant role in influencing the average size of new apartments.
For potential buyers, understanding these dynamics is essential. The market's current state suggests that while smaller apartments are trendy, larger units still hold significant value for those looking to invest in more spacious living.
Sources: Yeongnam, Yeongnam, DHNS
8) Rental prices in Daegu have risen by about 3% annually over the past two years
Rental prices in Daegu have been steadily climbing, with an approximate 3% annual increase over the past two years.
This trend is largely due to Daegu's growing population, which naturally boosts the demand for both housing and commercial spaces. As more people move to the city, the need for available properties rises, putting pressure on rental markets.
Another factor is the significant infrastructure development in Daegu. Improved roads, public transport, and amenities make the city more appealing to both businesses and residents, leading to increased demand in areas with better accessibility.
The arrival of large franchises and global brands has also contributed to the rise in rental prices. These companies often seek prime locations and are willing to pay higher rents, which can drive up costs in nearby areas.
As a result, certain neighborhoods in Daegu have become hotspots, with rental prices reflecting the premium on location. This is particularly true in areas that have seen recent development and investment.
For potential property buyers, understanding these dynamics is crucial, as rental trends can impact property values and investment potential. Keeping an eye on infrastructure projects and commercial developments can provide insights into future rental market shifts.
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.
9) The average price per square meter for a luxury apartment in Daegu is 10 million KRW
The average price per square meter for a luxury apartment in Daegu is 10 million KRW.
However, when we dive into the numbers, this figure seems quite inflated. In 2024, the Housing Guarantee Corporation reported that the average price per square meter for apartments in Daegu was around 726,200 KRW. This is significantly lower than the 10 million KRW mark.
Even for high-end properties, like the "Duson We've The Zenith" in Suseong-gu, the price per square meter was about 2,733,000 KRW. This is still far from reaching the 10 million KRW figure, raising questions about the accuracy of the luxury pricing.
Real estate prices in Daegu have indeed seen a notable increase, with a 46.50% rise in apartment prices from the previous year. This surge indicates a growing demand, particularly in upscale areas like Suseong-gu.
Despite this upward trend, the 10 million KRW figure remains puzzling. The data suggests that while prices are climbing, they haven't reached such heights yet.
Sources: idaegu.com, baroyeon.co.kr
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.