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18 strong trends for 2025 in the Daegu property market

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Authored by the expert who managed and guided the team behind the South Korea Property Pack

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What is happening in Daegu’s real estate market? Are prices on the rise or decline? Is Daegu still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?

These are the questions we hear every day from professionals, buyers, and sellers across Daegu and beyond. Maybe you’re curious about these trends too.

We know this because we stay closely connected with local experts and individuals like you, exploring the Daegu real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.

Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

How this content was created 🔎📝

At BambooRoutes, we study the Daegu 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 throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These trends 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, like Daegu City Government, Statista, and Korea Times (among many others).

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded. For the "trends" meeting our standards, we go and look for more insights from real estate blogs, industry reports, and expert analyses, alongside our own knowledge and experience. We believe it makes them more credible and solid.

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 forecasts 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.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Residential property prices in Daegu will stabilize following a period of rapid growth

In 2023 and 2024, Daegu's residential property market saw rapid growth, but signs point to stabilization ahead.

Recently, the pace of price hikes has slowed. The gap between short-term and long-term moving averages of apartment prices has shrunk, hinting at steadier growth. For instance, the five-week moving average price is now very close to the 60-week moving average, with a tiny gap of 71,700 won, the smallest in over two years.

Government policies are also in play to cool the market. Efforts to streamline redevelopment projects aim to boost the supply of new housing units, making them more affordable. This increase in supply is key to stabilizing prices.

Demographic changes in Daegu are another factor. Younger folks are looking for modern living spaces, which might lower demand in older areas, helping to stabilize prices. Plus, rising interest rates affect mortgage affordability, which could dampen property investment demand.

In Daegu, the local government is keen on balancing the market. By focusing on increasing housing supply and managing demand, they aim to create a more stable environment for buyers. This approach is expected to ease the pressure on property prices.

As these factors come into play, potential buyers might find a more balanced market, with less volatility and more opportunities for investment. The combination of policy changes, demographic shifts, and economic factors suggests that Daegu's property market is heading towards stabilization.

Sources: MK Real Estate, Korea Herald, MK Real Estate

2) Rental yields in Daegu's suburbs will drop as more people relocate to the city center

Suburban areas of Daegu are expected to see a drop in rental yields as more people flock to the city center.

In Jung-gu, the heart of Daegu, the population is bouncing back, reaching 90,000 and is on track to exceed 100,000 by 2025. This shows a clear trend: people are choosing the vibrancy of city life over suburban living.

Daegu City is pouring resources into infrastructure, like the new subway line 4 and fresh metropolitan roads, making the city center more accessible. These improvements are pulling residents from the suburbs, especially with the "urban campus town" project breathing new life into Jung-gu and drawing in younger folks, particularly university students.

Property prices in the city center are climbing, driven by a surge in demand and a wave of new apartment constructions in Jung-gu. This makes the area more appealing, suggesting that suburban areas might face higher vacancy rates as people opt for the convenience and buzz of city center living.

With these changes, the city center is becoming a hotspot, offering more opportunities and a lifestyle that many find irresistible. The shift is clear: people are moving towards the heart of Daegu, leaving suburban areas to adjust to this new reality.

As Daegu continues to evolve, the city center's allure is undeniable, reshaping the landscape and redefining where people want to call home.

Sources: Daegu City Government, MK News

infographics comparison property prices Daegu

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.

3) Suseong District will attract more interest for its high-quality education and amenities

The Suseong District in Daegu is catching eyes for its top-notch education and amenities, making it a hotspot for potential property buyers.

Back in 2023 and 2024, Suseong was already a magnet for families, thanks to schools like the Daegu International School, which offers a rich curriculum in English and Chinese. This educational excellence has led to a noticeable rise in enrollment rates, showing that more families are eager to settle here for their children's future.

With such prestigious schools, it's no surprise that housing demand in Suseong has shot up. Families are keen to move to areas with the best educational facilities, and this demand is nudging property prices higher. Real estate experts are predicting a steady growth in Suseong, largely due to its stellar educational reputation and the quality of life it offers.

The government is also playing a big role by pumping funds into educational infrastructure, which only adds to Suseong's charm. Increased budgets and new initiatives are enhancing the educational landscape, showing a clear commitment to making Suseong a hub for education and culture.

But it's not just about schools. The district is also developing amenities like parks and shopping centers, making it a well-rounded place for both families and professionals. This blend of education and lifestyle perks is what makes Suseong so appealing.

For anyone considering a move, Suseong offers a compelling mix of high-quality education and a vibrant community life. It's a district that promises both academic excellence and a fulfilling lifestyle.

Sources: UNESCO, Stripes Guam, Suseong District Official Site

4) Student influx in Daegu will increase demand for affordable rentals near universities

The influx of students to Daegu is set to increase the demand for affordable rentals near universities.

With universities like Daegu University seeing a steady rise in enrollment, the student population in Daegu reached 119,483 in 2023 and 2024, including 4,301 international students. This surge is putting pressure on the housing market.

On-campus housing is limited, and many universities struggle to provide enough accommodation. Students often prefer the freedom of living off-campus, a trend seen in many university towns.

Real estate agents are noticing a spike in inquiries from students, highlighting the strong demand for affordable housing near these educational institutions. This demand is prompting local governments and developers to consider new student housing projects.

In Daegu, the real estate market is responding to these needs, with increased interest from private developers looking to capitalize on the growing student population.

As the student numbers continue to rise, the need for affordable rental properties near universities is becoming more pressing, driving potential investments in the area.

Sources: EduRank, Korea Times, UniPage

5) New tax incentives for first-time buyers will boost Daegu's residential market

New tax incentives for first-time buyers in Daegu are set to boost the residential market.

In 2023, Daegu saw a surge in housing transactions, jumping to around 40,000 from about 29,000 the previous year. This uptick indicates that more people are diving into the market, likely spurred by these fresh incentives.

The Korea Research Institute's real estate market consumer sentiment index climbed by 8.5 points to 112.5 in July 2023. This rise shows a growing interest in property purchases, especially among first-time buyers, hinting that the incentives are indeed drawing new buyers.

These tax incentives have slashed financial hurdles for first-time buyers, making homeownership more attainable. In Daegu, properties like Namsan Lotte Castle Central Sky set new price records in 2024, reflecting a market that's positively reacting to increased demand.

Local insiders note that these incentives are not just about numbers; they’re reshaping the market landscape. With more first-time buyers entering the scene, the dynamics of property ownership in Daegu are shifting, creating a buzz among real estate agents and developers.

As these incentives continue to attract attention, the Daegu housing market is becoming a hotspot for new homeowners. The combination of reduced financial barriers and increased interest is transforming Daegu into a vibrant hub for first-time buyers.

Sources: MK Real Estate, Statista

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6) Demand in Dong-gu will surge with improved accessibility from new transportation links

The Dong-gu area in Daegu is catching eyes thanks to better transportation links.

In 2023, apartment sales in Daegu nearly doubled, jumping from about 11,000 to around 23,000. This boom hints at a growing interest, likely because getting around is becoming easier.

Take the Namsan Lotte Castle Central Sky in Namsan-dong, for instance. Its price shot up from 650 million won in February 2023 to 800 million won by August 2023. This 23% price hike shows how much people value good transport links, and Dong-gu is expected to follow suit.

Daegu Metropolitan City is pouring money into infrastructure. The 2025 budget includes plans for a new subway line and better roads, focusing on Dong-gu. These upgrades aim to spark urban growth and attract more residents and investors.

With these changes, Dong-gu is set to become a hot spot for property buyers. The area's improved accessibility is a major draw, making it a prime location for those looking to invest.

As new transportation links roll out, expect a surge in demand for properties in Dong-gu. The area's transformation is just beginning, and it's poised to become even more desirable.

Sources: KPF, MK Real Estate, Daegu Metropolitan City, Statista

7) Foreign interest in Daegu's suburban properties will decline as urban areas gain appeal

Foreign interest in Daegu's suburban properties is waning as urban areas become more appealing.

In recent years, urban property prices in Daegu have surged, making them a magnet for investors. For example, some city center apartments have seen their value jump by 23%, turning them into hot commodities for those seeking solid returns.

Daegu's urban centers are now more convenient thanks to improved infrastructure and public transport. Developments like the Daemyung Xi Grand City are in high demand, with contracts flying off the shelves soon after launch, highlighting the allure of city living.

The government is also playing its part by revitalizing urban areas with initiatives like long-term rental housing projects. These efforts are not just attracting locals but also catching the eye of foreign investors, making urban areas the preferred choice for real estate investment.

As a result, suburban properties are losing their charm to the bustling urban centers. The shift is clear: more people are drawn to the vibrant city life, leaving the suburbs behind.

With all these factors at play, urban areas are becoming the go-to spots for those looking to invest in Daegu's real estate market. The trend is unmistakable, and the numbers speak for themselves.

Sources: MK Real Estate, Korea Times

8) Virtual reality tours will become more prevalent in Daegu, enhancing property viewing accessibility

In Daegu, virtual reality tours are making property viewing easier.

With South Korea's internet penetration at nearly 98.6% and smartphone ownership at 94.8%, it's no wonder virtual tours are taking off. This tech-savvy environment means most people can easily check out homes from their phones or computers.

Homebuyers are catching on, with 67% wanting virtual tours when browsing listings. Even more telling, 95% are more likely to ask about properties that offer these tours, showing how crucial VR is becoming in real estate.

Thanks to tech advancements, VR is now more affordable and accessible. The 3D virtual tour segment stands out for its detailed, interactive experiences, working seamlessly on both web and mobile.

Sources: PhotoUp, Comms8, Digital CXO

infographics map property prices Daegu

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

9) Foreign buyers will target Daegu's central districts for their closeness to business hubs

Foreign buyers are zeroing in on Daegu's central districts because of their close proximity to major business hubs.

In recent years, especially in 2023 and 2024, Daegu has gained a reputation for its strong economy centered around technology, manufacturing, and healthcare. This makes the central districts a magnet for foreign professionals and investors eager to be near these booming sectors.

Daegu's improved transportation infrastructure is another big draw for foreign buyers. The city boasts modern and efficient public transportation networks, making central districts more accessible and appealing to those who value convenience and connectivity. This is a key factor for foreign investors who often need to travel for business.

New business parks and commercial spaces are popping up in Daegu's central districts, adding to their allure. These developments not only create more job opportunities but also foster a dynamic business environment that attracts foreign professionals and investors. The potential for higher rental yields in these areas makes them a lucrative option for real estate investors.

Foreign buyers are particularly interested in Daegu's central districts because of their strategic location near business hubs, which is crucial for those involved in international business. The vibrant atmosphere and economic opportunities make these districts a top choice.

Sources: Real Estate Daegu, Statista, Global Property Guide

10) Foreign investment in Daegu’s residential properties will increase due to favorable exchange rates

Daegu is catching the eye of foreign investors eager to dive into the residential property market.

One big reason is the favorable exchange rate between the South Korean Won and the US Dollar. This rate has jumped by 12.18% over the past year, making it a sweet deal for those looking to buy property in South Korea, especially in Daegu.

Foreign interest in South Korea's real estate is on the upswing. In 2024, international investors accounted for about 10% of luxury real estate buyers in the country. This trend shows that more and more foreign investors see South Korea as a hot spot for real estate, and Daegu is set to ride this wave.

Experts are buzzing about the potential for a diverse mix of investors in South Korea's real estate scene. Richard Hwang from Cushman & Wakefield Korea points out that alliances between investors and developers are likely to draw in foreign companies, giving cities like Daegu a boost in foreign investment.

Daegu's appeal isn't just about numbers; it's about the partnerships and collaborations that are forming. These alliances are paving the way for increased foreign investment, making Daegu a city to watch.

With these favorable conditions, Daegu is poised to become a prime destination for foreign investors looking to tap into South Korea's real estate market.

Sources: Korea Times, YCharts, Korea Herald

11) Affordable housing projects in Daegu will moderately raise property prices in nearby areas

Affordable housing projects in Daegu are set to moderately boost property prices in nearby areas.

With the consumer sentiment index rising significantly in 2024, more people are eager to buy homes in Daegu. This growing interest naturally pushes property prices up. We've seen this before; when affordable housing projects were introduced, like in the Namsan Lotte Castle Central Sky area, property prices jumped from 2023 to 2024.

These projects often come with better infrastructure and amenities, making the areas more appealing. Take the Daemyung Xi Grand City complex, for instance. It had a high contract rate right after reopening its sample houses, showing how attractive these areas can become. Surveys also show that people are keen on living near these projects, expecting property values to rise.

Demographics are shifting too. The government plans to tweak the allotment system for new apartments, which could draw more young families to Daegu. This change is likely to increase housing demand, further impacting property prices. Real estate experts predict that these affordable housing projects will have spillover effects, boosting prices in nearby areas.

Sources: MK Real Estate, Korea Herald, Chosun Biz

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12) Foreign buyers will increasingly target Daegu's luxury apartment market

Foreign buyers are showing more interest in Daegu's luxury apartment market for several compelling reasons.

First off, Daegu is seeing a surge in foreign residents, with apartment purchases jumping from 11,000 in 2022 to 23,000 in 2023. This growing community hints at a rising demand for upscale living spaces.

Foreign investment in South Korea's real estate is also climbing. In 2023, investments hit $2.3 billion, a 23% increase from the previous three-year average. This trend shows that international investors are eyeing South Korea, and Daegu could be next on their list.

The Korean won's recent dip is another factor. With the exchange rate dropping by 7.3% in April 2024, foreign investors find it cheaper to buy properties in South Korea, making Daegu's luxury apartments more enticing.

Daegu's strategic location and industrial growth are attracting international business professionals and expatriates, which could boost the demand for luxury apartments. The city's improved transportation links and infrastructure developments add to its allure for international buyers.

Sources: Chosun Biz, Korea Times, Statista

13) Newly developed areas in Daegu will provide higher rental yields with modern amenities and infrastructure

Newly developed areas in Daegu are catching eyes for their potential to offer higher rental yields.

These areas are buzzing with modern amenities and cutting-edge infrastructure, making them a hot spot for potential property buyers. The local government is keen on managing the existing housing supply, which means that when new developments get the green light, they could see a surge in rental yields due to the limited supply and high demand.

Today's tenants are all about modern living, and Daegu is leading the charge with smart home technology. Imagine homes equipped with sensor-attached appliances and home cams, enhancing both comfort and security. These features are a big draw for tenants, making these new areas even more appealing.

Daegu isn't stopping there; it's also pouring resources into smart city services. This not only boosts the quality of life but also attracts more businesses and residents. The city's investment in infrastructure, like smart home experience zones, shows a strong commitment to modern living standards, which is likely to drive up rental yields in these new developments.

Sources: Korea JoongAng Daily, Smart City Korea, DWS

14) Daegu will see rising demand for smaller living spaces as single-person households grow

Daegu is experiencing a boom in single-person households, especially noticeable in 2023 and 2024.

This shift is making smaller living spaces more popular. In 2023, apartment purchase transactions hit around 23,000, showing a clear interest in housing that suits this trend. Young professionals, particularly those in their 30s, are leading the charge, often opting for smaller apartments.

Experts in the real estate market are seeing this as a sign of things to come. As more people live alone, the demand for compact living spaces is expected to keep rising. This is also reflected in the increasing housing prices, with developers focusing on creating smaller units to cater to this need.

City planners and government officials are on the case too. They've been working on housing solutions that fit single-person households, which usually means designing smaller, more efficient homes. These efforts are all about keeping up with the demographic changes.

In Daegu, the trend is clear: smaller living spaces are becoming the norm as more people choose to live alone. This shift is reshaping the housing market, with both buyers and developers adjusting to the new reality.

For anyone considering buying property in Daegu, it's worth noting that the focus is increasingly on compact, efficient living. This trend is not just a passing phase but a response to the growing number of single-person households.

Sources: Statista, MK.co.kr, MDPI

infographics rental yields citiesDaegu

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.

15) Daegu's outskirts will see gradual price rises as urban sprawl progresses

Property prices in central Daegu have been climbing steadily, with the Namsan Lotte Castle Central Sky area seeing a 23% increase from 650 million won in February 2023 to 800 million won in August 2024.

As Daegu's population grows, projected to rise from 2,179,930 in 2024 to 2,231,810 by 2035, the demand for housing is expected to follow suit. This growth is fueled by urban development plans like the "Daegu-type 5-minute neighborhoods," which aim to enhance residential environments and make suburban areas more appealing.

Government initiatives, such as the Daegu Metropolitan City Smart City Plan, are expanding into the suburbs, improving connectivity and livability. These projects are likely to boost the attractiveness of suburban living by enhancing transportation links to the city center.

Real estate market reports indicate a shift towards suburban growth, with the housing price forecast index reaching its highest point in two years and 10 months as of August 2024. This suggests a revival in Daegu's home sales market, pointing to increased interest in suburban areas.

Local government policies, like the Tong Development Master Plan, are actively promoting suburban development. By minimizing regulations and maximizing incentives for private-led projects, these policies are likely to drive up property prices in suburban areas.

As urban sprawl continues, the outskirts of Daegu are expected to experience a gradual price increase. This trend is supported by ongoing infrastructure projects and government efforts to encourage suburban growth.

Sources: World Population Review, MK Real Estate, MK Society, Smart City Korea

16) Daegu’s luxury apartment prices will slightly decline as supply exceeds demand

Daegu's luxury apartment market is experiencing a shift due to an oversupply of 109,000 units in recent years.

This surge in construction has made Daegu the second-largest supplier of luxury apartments in South Korea, just behind the Seoul Metropolitan Area. However, the city's shrinking population over the past decade has created a mismatch between supply and demand.

In 2021, the number of unsold luxury apartments in Daegu skyrocketed to 1,185 units in just one month, highlighting the growing issue of unsold inventory. The situation was exacerbated by non-urban renewal projects, which were expected to add even more units to the market.

Market analyses have shown a slowdown in luxury property sales in Daegu. While there was hope for a market reversal, the trend in sale prices indicated a potential decline, reflecting the challenges faced by the luxury segment.

Demographic studies reveal a decline in the population segment that typically buys luxury properties, such as young professionals and affluent families. This demographic shift further complicates the market dynamics.

As a result, the luxury apartment market in Daegu is likely to see a slight decline in prices as supply continues to outpace demand.

Sources: MK Real Estate, Business Korea, AI Skill

17) Rents in Daegu's central areas will increase as urban living becomes more popular

Daegu's population is on the rise, and with it, the demand for housing is climbing.

Central districts like Buk-gu, Dalseo-gu, and Suseong-gu are becoming hotspots due to new amenities and lifestyle upgrades. These improvements make the areas more appealing, naturally leading to higher rental prices as everyone wants a piece of the action.

Young professionals and students are flocking to Daegu, drawn by its educational institutions and job prospects. This younger crowd is keen on urban living, which means more demand for city apartments and, you guessed it, rising rents.

Daegu's central districts are now easier to reach, thanks to better infrastructure and public transport. As getting around becomes simpler, more people are opting for city life, pushing rental prices even higher.

Sources: City Population, City Population Daegu, Wise Renting Guide

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18) Rents in new developments will rise due to strong demand for modern living spaces

Rents in newly developed areas are on the rise due to the high demand for modern living spaces.

In Daegu, this trend is clear as the rental market has shifted towards a renter's market, showing that newly developed areas are in high demand. As more people seek these modern spaces, rental prices are naturally driven up. The city's population has been steadily increasing, even with a slight dip from 2023 to 2024, which means more people are moving to the city and looking for convenient, contemporary housing options.

The construction of high-rise apartments and mixed-use developments is booming, catering to the demand for modern living. These types of housing are highly sought after, and the increased investment in infrastructure and public services in new areas only adds to their appeal. Better transportation systems, amenities like parks and community centers, and improved public services all contribute to higher rental prices.

Media reports often highlight the appeal of these modern environments, which can attract even more residents and further increase demand. In Daegu, the urbanization trend suggests a growing need for modern living spaces, as more people move to the city and seek out these convenient housing options.

As a result, rental prices are driven up as more people seek these modern spaces. The construction of high-rise apartments and mixed-use developments further supports this demand, as these types of housing are highly sought after. Additionally, increased investment in infrastructure and public services in new areas enhances the appeal of modern living environments.

Better transportation systems, amenities like parks and community centers, and improved public services all contribute to higher rental prices. Media reports highlighting the appeal of these modern environments can attract more residents, further increasing demand.

Sources: Loebsack Brownlee, World Population Review, Buildium

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.