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
Daegu is South Korea's fourth largest city, and its real estate market in 2026 operates very differently from Seoul or Busan, with lower prices, longer selling times, and a sharp divide between premium school districts and everything else.
This guide covers the current housing prices in Daegu and how to navigate the market as a foreign buyer, and we constantly update this blog post to reflect the latest conditions.
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.
How's the real estate market going in Daegu in 2026?
What's the average days-on-market in Daegu in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Daegu is around 95 days, which is noticeably longer than what you would see in Seoul or even Busan.
The realistic range of days-on-market in Daegu covers most typical listings between 45 and 200 days, with prime properties in Suseong-gu's school zones selling in 45 to 75 days, while secondary locations or overpriced listings can sit for 120 days or much longer.
Compared to one or two years ago, the current days-on-market in Daegu has actually improved slightly because unsold new-build inventory has been absorbed and buyer confidence has slowly returned, though the market is still moving more slowly than during the 2020 to 2021 boom.
Are properties selling above or below asking in Daegu in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Daegu is around 96% to 98%, meaning most buyers negotiate a 2% to 4% discount off the listed price.
In Daegu, roughly 70% to 80% of properties sell at or below asking, while only 10% to 20% of transactions close above asking, and we are fairly confident in this range based on the city's soft overall price direction and buyer-favorable negotiating conditions.
The property types and neighborhoods in Daegu most likely to see bidding wars and above-asking sales are newer apartments in Suseong-gu's top school zones like Beomeo-dong and Manchon-dong, or units directly adjacent to major metro stations like Dongdaegu, where scarcity drives competition even in a soft market.
By the way, you will find much more detailed data in our property pack covering the real estate market in Daegu.
What kinds of residential properties can I realistically buy in Daegu?
What property types dominate in Daegu right now?
The estimated breakdown of residential property types available for sale in Daegu in 2026 is roughly 75% apartments, 15% villas and low-rise multi-family units, 8% detached houses, and 2% townhouses or premium low-rise properties.
Apartments represent the largest share of the Daegu real estate market by a wide margin, making them the default choice for most local and foreign buyers alike.
This apartment-dominant structure became so prevalent in Daegu because Korean urban planning strongly favored high-rise development to accommodate population density, and Korean families culturally prefer the security, amenities, and resale liquidity that apartment complexes offer over detached homes.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Daegu right now?
The estimated share of new-build properties among all residential listings currently available in Daegu is relatively high compared to other Korean cities, because Daegu experienced significant construction activity in recent years and still carries some unsold inventory from that wave.
As of early 2026, the neighborhoods in Daegu with the highest concentration of new-build developments include Dong-gu near Dongdaegu Station, parts of Dalseo-gu in the western districts, and newer sections of Suseong-gu around the Suseong Alpha City area, where developers have focused their construction pipelines.
Which neighborhoods are improving fastest in Daegu in 2026?
Which areas in Daegu are gentrifying in 2026?
As of early 2026, the top neighborhoods in Daegu showing the clearest signs of gentrification are Jung-gu's Dongseong-ro and Jungangno commercial core, along with the alleys around the Banwoldang area, where urban renewal investment is transforming the streetscape.
The visible changes indicating gentrification in these Daegu areas include the arrival of specialty cafes, boutique retail, and renovated hanok-style buildings, alongside the documented Dongseong-ro Renaissance project that has funded streetscape improvements and pedestrian zone expansion through 2026.
The estimated price appreciation in these gentrifying Daegu neighborhoods over the past two to three years has been modest at around 3% to 8% depending on the specific pocket, which lags the earlier boom years but still outperforms secondary districts that saw flat or negative movement.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Daegu.
Where are infrastructure projects boosting demand in Daegu in 2026?
As of early 2026, the top areas in Daegu where major infrastructure projects are boosting housing demand are Dong-gu around Dongdaegu Station, Suseong-gu along the planned Metro Line 4 corridor, and neighborhoods near the Suseong Alpha City R&D cluster.
The specific infrastructure projects driving that demand in Daegu include Metro Line 4 (connecting Suseong District Stadium to EXCO via Beomeo and Dongdaegu stations), the Daegu Industrial Line suburban railway now under construction, and the ongoing Line 1 extension toward Yeongcheon.
The estimated timeline for completion of these major projects in Daegu is around 2029 to 2030 for Metro Line 4 and the Line 1 extension, while the Daegu Industrial Line is expected to open by 2031.
The typical price impact on nearby properties in Daegu when such infrastructure projects are announced versus completed is around 5% to 10% appreciation during the announcement and construction phases, with an additional 3% to 7% once the lines actually open and daily convenience becomes real.
What do locals and insiders say the market feels like in Daegu?
Do people think homes are overpriced in Daegu in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders is that Daegu homes are not overpriced citywide, but specific premium pockets in Suseong-gu feel expensive relative to local incomes because families compete intensely for school district access.
The specific evidence locals in Daegu typically cite when arguing certain areas are overpriced includes the fact that Suseong-gu apartment prices can reach nearly 1.5 times the citywide average, while wages and job opportunities have not kept pace with that premium.
The counterarguments commonly given by those who believe Suseong-gu prices are fair focus on the scarcity of top-tier school zones, the concentration of lifestyle amenities, and the fact that these areas hold value better during downturns compared to secondary districts.
The price-to-income ratio in Daegu is significantly more affordable than Seoul or even Busan, with the citywide median home price sitting around 40% lower than Seoul's median, though Suseong-gu specifically pushes closer to national average affordability stress levels.
What are common buyer mistakes people regret in Daegu right now?
The most frequently cited buyer mistake that people regret making in Daegu is overpaying for a nice-looking apartment outside the proven demand cores like Suseong-gu, only to discover that resale liquidity vanishes quickly when market sentiment cools.
The second most common buyer mistake people mention regretting in Daegu is ignoring the new-build supply dynamics, where buyers purchased at full price without comparing developer incentives or checking how many unsold units remained in the same complex.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Daegu.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Daegu.
How easy is it for foreigners to buy in Daegu in 2026?
Do foreigners face extra challenges in Daegu right now?
The estimated overall difficulty level foreigners face when buying property in Daegu is moderate, because unlike Seoul, Daegu is not part of the August 2025 permit zone, meaning foreigners can still purchase freely and simply report the transaction within 60 days.
The specific legal restrictions that apply to foreign buyers in Daegu are minimal compared to the capital region: you do not need government pre-approval, there is no mandatory residency requirement, and the process follows the traditional Korean property transaction system.
The practical challenges foreigners most commonly encounter in Daegu include the language barrier with local real estate agents who rarely speak English, the heavy reliance on the jeonse (large deposit lease) system which can confuse first-time foreign buyers, and the difficulty of opening a Korean bank account without an Alien Registration Card.
We will tell you more in our blog article about foreigner property ownership in Daegu.
Do banks lend to foreigners in Daegu in 2026?
As of early 2026, the estimated availability of mortgage financing for foreign buyers in Daegu is limited but possible, with major banks like KB Kookmin, Shinhan, and Hana Bank willing to lend if you hold a valid long-term visa such as F-2, F-4, or F-6 status.
The typical loan-to-value ratios foreign buyers can expect in Daegu range from 50% to 70%, meaning you should prepare a down payment of 30% to 50%, and interest rates for foreigners typically fall between 3.8% and 5.2% depending on your profile and the bank.
The documentation and income requirements banks typically demand from foreign applicants in Daegu include a valid Alien Registration Card (ARC), proof of stable income (preferably Korea-based), employment contracts, tax returns, and in some cases additional collateral or a Korean co-borrower.
You can also read our latest update about mortgage and interest rates in South Korea.
How risky is buying in Daegu compared to other nearby markets?
Is Daegu more volatile than nearby places in 2026?
As of early 2026, the estimated price volatility of Daegu is higher than Seoul but roughly comparable to other non-capital metros like Busan and Daejeon, with Daegu showing a 3.87% year-on-year decline in Q3 2025 while Seoul rose 3.63% in the same period.
The historical price swings Daegu has experienced over the past decade include a strong run-up from 2019 to 2021 followed by a sharper correction than Seoul, largely because Daegu's market is more sensitive to new-build supply cycles and lacks the deep, diversified demand base of the capital.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Daegu.
Is Daegu resilient during downturns historically?
The estimated historical resilience of Daegu property values during past economic downturns is lower than Seoul and the capital region, because Daegu's demand base is more locally driven and supply shocks hit harder without the deep pool of buyers Seoul attracts.
During the most recent major downturn from 2022 to 2024, property prices in Daegu dropped around 10% to 15% from their peak, and recovery has been slower than in Seoul, with prices still sitting roughly 2% to 4% below year-ago levels when adjusted for inflation.
The property types and neighborhoods in Daegu that have historically held value best during downturns are apartments in Suseong-gu's top school zones like Beomeo-dong and Manchon-dong, along with units near major transit hubs like Dongdaegu Station, because families prioritize these locations even when budgets tighten.
How strong is rental demand behind the scenes in Daegu in 2026?
Is long-term rental demand growing in Daegu in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Daegu is stable to slightly soft citywide, though demand remains stronger near job hubs like Suseong Alpha City and education-focused neighborhoods where families cluster.
The tenant demographics driving long-term rental demand in Daegu include young professionals working in the city's manufacturing and healthcare sectors, families seeking access to top school districts, and a modest but growing population of foreign workers and students.
The neighborhoods in Daegu with the strongest long-term rental demand right now are Suseong-gu for families prioritizing schools, Dong-gu near Dongdaegu Station for commuters, and Nam-gu for those seeking a balance of affordability and urban convenience.
You might want to check our latest analysis about rental yields in Daegu.
Is short-term rental demand growing in Daegu in 2026?
Regulatory changes affecting short-term rental operations in Daegu are relatively limited compared to Seoul, though operators must still register with local authorities and comply with Korea's broader accommodation and tax reporting requirements.
As of early 2026, the estimated growth trend for short-term rental demand in Daegu is modest but positive, driven by domestic tourism recovery and the city's positioning as a medical tourism and convention destination with venues like EXCO.
The current estimated average occupancy rate for short-term rentals in Daegu sits in the mid-range compared to major Korean cities, with AirDNA data showing occupancy patterns consistent with a city that attracts steady but not overwhelming visitor traffic.
The guest demographics driving short-term rental demand in Daegu include domestic tourists visiting historical sites and festivals, business travelers attending conventions at EXCO, and a smaller segment of medical tourists seeking treatment at Daegu's specialized hospitals.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Daegu.
What are the realistic short-term and long-term projections for Daegu in 2026?
What's the 12-month outlook for demand in Daegu in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Daegu is selective recovery, meaning prime neighborhoods will see steady buyer interest while secondary areas continue to struggle with slower absorption.
The key economic and political factors most likely to influence demand in Daegu over the next 12 months include Bank of Korea interest rate decisions (with cuts expected to support affordability), the absorption of remaining unsold inventory, and whether job growth at clusters like Suseong Alpha City accelerates.
The forecasted price movement for Daegu over the next 12 months is flat to slightly negative in the range of 0% to minus 1.4%, lagging Seoul's expected gains but potentially stabilizing as supply pressure eases.
By the way, we also have an update regarding price forecasts in South Korea.
What's the 3 to 5 year outlook for housing in Daegu in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Daegu is cautiously constructive, contingent on whether the city's infrastructure investments and job cluster growth translate into sustained household formation.
The major development projects expected to shape Daegu over the next 3 to 5 years include Metro Line 4 opening around 2030, the Daegu Industrial Line suburban railway, continued expansion of Suseong Alpha City's R&D ecosystem, and the long-term Daegu-Gyeongbuk Integrated New Airport plan.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Daegu is whether the city can reverse its slow population decline and attract enough working-age households to sustain demand, because without demographic support, even good infrastructure will not lift prices meaningfully.
Are demographics or other trends pushing prices up in Daegu in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Daegu is neutral to slightly negative, because the city's population has been slowly declining and aging, which limits organic demand growth.
The specific demographic shifts most affecting prices in Daegu include an outflow of young workers to Seoul and other metros, a rising share of single-person and elderly households, and modest inflows of foreign workers in manufacturing who tend to rent rather than buy.
The non-demographic trends also pushing prices in Daegu include the concentration of R&D and tech jobs at Suseong Alpha City (which supports premium demand in that corridor), improving transit connectivity, and the "supply cliff" narrative as new construction slows after years of oversupply.
These demographic and trend-driven price pressures in Daegu are expected to continue for at least the next 3 to 5 years, though the negative demographic drag may ease slightly if job growth at new economy clusters outperforms expectations.
What scenario would cause a downturn in Daegu in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Daegu is a combination of persistently tight financing conditions and a resurgence of unsold new-build inventory that forces developers to cut prices aggressively.
The early warning signs that would indicate such a downturn is beginning in Daegu include rising listings on HUG's unsold management area notices, widening gaps between asking and transaction prices, and increasing days-on-market even in previously stable Suseong-gu pockets.
Based on historical patterns, a potential downturn in Daegu could realistically see prices decline by 10% to 15% from current levels in a stress scenario, similar to the 2022 to 2024 correction, with recovery taking 2 to 3 years if demand drivers remain weak.
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) | It's the official nationwide housing statistics portal run by Korea's public real estate statistics agency. | We used it to anchor Daegu's latest official price direction signals and monthly apartment price index changes. We also use it as the ground truth reference when sanity-checking any private-sector numbers. |
| MOLIT Real Transaction Price System (RTMS) | This is the Ministry of Land's official database of actual recorded property transactions in South Korea. | We use it as the cleanest way to validate what buyers really pay rather than asking prices. We rely on it for sale-versus-ask reasoning and to stress-test neighborhood price claims. |
| KB Real Estate Data Hub | KB is one of Korea's best-known housing data producers with widely cited indexes and dashboards. | We used it to triangulate Daegu's direction versus national trends and to inform market temperature indicators. We treat it as a second independent lens next to official REB data. |
| Daegu Statistics Portal | It's the city's own statistical portal published by the local government with Daegu-specific data. | We use it to understand Daegu-specific demand fundamentals including population structure, foreign resident counts, and labor market snapshots that explain why some neighborhoods outperform. |
| HUG (Housing & Urban Guarantee Corp.) | HUG is a government-related housing finance institution whose unsold management notices are formal market stress signals. | We use it to gauge when unsold inventory stress is high enough to trigger policy attention. We also use it to explain why new-build pricing in Daegu can stay sticky even when resales weaken. |
| InvestKOREA / KOTRA | KOTRA is a government-linked investment promotion agency with official-style project documentation. | We use it to support gentrification and urban upgrading claims in central Daegu with dated, budgeted projects. We translate those into practical implications for buyers. |
| Daegu Metropolitan Transit Corporation (DTRO) | It's the official operator for Daegu's urban rail system with authoritative network information. | We use it as the baseline for how Daegu's transit network works today. This helps us explain why being near certain stations matters more in Daegu than in some other Korean cities. |
| KOSIS (Korean Statistical Information Service) | KOSIS is the official national statistics portal that aggregates all approved statistical series for South Korea. | We use it as a backbone source for macro and demographic context when interpreting Daegu's housing demand. We also cross-check that city-level metrics align with national definitions. |
| AirDNA | AirDNA is a widely used short-term rental analytics provider with clearly defined occupancy and rate metrics. | We use it to estimate short-term rental demand in Daegu including occupancy and nightly rates. We treat it as directional and sanity-check it against Korea's broader tourism recovery signals. |
| Global Property Guide | It's a respected international real estate analysis platform with comprehensive South Korea market coverage. | We use it to compare Daegu's performance against national trends and to verify price forecasts. We also reference their foreigner buying guides for procedural accuracy. |
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