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If you're thinking about investing in rental property in Daegu, understanding the actual numbers behind rental yields is essential before you commit your money.
This guide breaks down gross and net yields, neighborhood variations, property types, and the real costs that eat into your returns in Daegu's residential market.
We constantly update this blog post to reflect the latest data and market conditions in Daegu.
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.
Insights
- Daegu's average gross rental yield of around 3.8% in early 2026 outperforms Seoul's capital region because property prices are lower while rents hold relatively steady.
- The gap between Daegu's highest-yield and lowest-yield neighborhoods can reach 2 to 3 percentage points, making location choice a major factor in investment returns.
- Villas and low-rise multifamily buildings in Daegu can deliver gross yields between 4.0% and 5.5%, but they come with higher vacancy and maintenance risks than apartments.
- Premium school-zone areas like Beomeo-dong and Manchon-dong in Suseong-gu typically compress gross yields to around 2.7% to 3.4% due to elevated purchase prices.
- Daegu's vacancy rate for investor-grade rentals hovers around 5%, but areas near Dongdaegu Station and Seongseo industrial corridors can drop to 3% to 4%.
- The shift toward monthly rent (wolse) rather than large deposit leases (jeonse) in Daegu is improving cash flow predictability for landlords.
- Upcoming infrastructure like the Daegu-Gyeongbuk New Integrated Airport and the Industrial Line Railroad could push rents higher in connected neighborhoods.
- Small units between 20 and 45 square meters in Daegu tend to deliver the best yield per square meter because rent stays strong while purchase prices remain accessible.
What are the rental yields in Daegu as of 2026?
What's the average gross rental yield in Daegu as of 2026?
As of early 2026, the estimated average gross rental yield for residential properties in Daegu sits at around 3.8%, which reflects the city's more affordable property prices compared to Seoul while rents remain relatively stable.
Most typical residential properties in Daegu fall within a gross yield range of 3.1% to 4.8%, depending on the district and the size of the unit you purchase.
This puts Daegu above the capital region's yield averages, where high purchase prices compress returns, making Daegu an attractive alternative for yield-focused investors in South Korea.
The single most important factor influencing gross yields in Daegu right now is the city's strong "renter engines" like universities, industrial complexes, and major rail nodes, which support rental demand even when sales prices soften.
What's the average net rental yield in Daegu as of 2026?
As of early 2026, the estimated average net rental yield in Daegu is around 2.6%, which accounts for all the real-world costs that landlords face beyond the headline rent figure.
The typical gap between gross and net yields in Daegu is about 1.2 percentage points, meaning landlords should expect to lose roughly one-third of their gross return to operating costs.
In Daegu specifically, the combination of management fees and maintenance costs on apartment buildings tends to be the largest recurring expense that reduces gross yield to net yield.
Most standard investment properties in Daegu deliver net yields in the range of 1.9% to 3.5%, with the variation driven by property age, building type, and how efficiently you manage vacancy and turnover.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in 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.
What yield is considered "good" in Daegu in 2026?
In Daegu's early 2026 market, local investors generally consider a gross rental yield of 4.5% or higher to be "good," as this provides a meaningful spread above the city average of around 3.8%.
The threshold that separates average-performing properties from high-performing ones is typically around 4.5% gross, while anything above 5% is considered excellent and usually requires buying below market value or targeting renter hot-spots with modest prices.
How much do yields vary by neighborhood in Daegu as of 2026?
As of early 2026, the spread in gross rental yields between Daegu's highest-yield and lowest-yield neighborhoods is about 2 to 3 percentage points, which makes your choice of location one of the biggest factors in your investment return.
The highest rental yields in Daegu typically come from neighborhoods with strong renter demand and more accessible purchase prices, such as Sangin-dong, Wolseong-dong, and the Seongseo industrial area in Dalseo-gu, as well as Dongcheon-dong and areas near Kyungpook National University in Buk-gu.
The lowest yields in Daegu are found in premium-priced neighborhoods with expensive school zones, particularly Beomeo-dong and Manchon-dong in Suseong-gu, where high purchase prices compress the rent-to-price ratio.
The main reason yields vary so much across Daegu neighborhoods is that rents don't fall as much as property prices when you move from premium to more affordable areas, so cheaper districts tend to offer better yield percentages.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Daegu.
How much do yields vary by property type in Daegu as of 2026?
As of early 2026, gross rental yields across different property types in Daegu range from around 3.0% for some detached houses up to 5.5% for well-located villas and low-rise multifamily buildings.
Villas and low-rise multifamily buildings currently deliver the highest average gross yields in Daegu, typically between 4.0% and 5.5%, though these come with higher vacancy and maintenance risks.
Standard apartments in Daegu tend to deliver the lowest average gross yields among common property types, ranging from about 3.4% to 4.3%, because they are the most sought-after and command premium prices relative to rent.
The key reason yields differ between property types in Daegu is that apartments are highly liquid and preferred by tenants, which drives up their purchase prices, while villas and officetels carry more risk and therefore trade at lower prices relative to their rental income.
By the way, you might want to read the following:
What's the typical vacancy rate in Daegu as of 2026?
As of early 2026, the estimated average residential vacancy rate for investor-grade long-term rentals in Daegu is around 5%, which represents typical market conditions for well-maintained properties.
Vacancy rates across Daegu neighborhoods range from about 3% to 8%, with tighter vacancy near major employment zones and transit nodes, and looser vacancy in oversupplied areas or older buildings with weak layouts.
The main factor driving vacancy rates in Daegu is proximity to "renter engines" like Dongdaegu Station, Seongseo industrial corridors, and universities, which create steady demand and keep units filled faster.
Daegu's vacancy rate is roughly in line with other major Korean cities outside Seoul, though it can trend slightly higher in districts with aging housing stock or recent oversupply of new construction.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Daegu.
What's the rent-to-price ratio in Daegu as of 2026?
As of early 2026, the estimated average rent-to-price ratio in Daegu is approximately 0.32% per month, which translates to about 3.8% annually when you convert mixed deposit structures into a monthly rent equivalent.
For buy-to-let investors in Daegu, a rent-to-price ratio above 0.35% per month (around 4.2% annually) is generally considered favorable, as this provides a cushion above the city average and directly translates into higher gross rental yield.
Daegu's rent-to-price ratio compares favorably to Seoul and other capital-region cities, where high property prices push the ratio well below 0.25% per month, making Daegu a more attractive market for cash-flow-focused investors.
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.
Which neighborhoods and micro-areas in Daegu give the best yields as of 2026?
Where are the highest-yield areas in Daegu as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Daegu are Sangin-dong and Wolseong-dong in Dalseo-gu, plus the Dongcheon-dong area in Buk-gu's Chilgok district, all of which combine strong renter demand with relatively modest purchase prices.
In these high-yield areas of Daegu, investors can typically expect gross rental yields in the range of 4.2% to 5.2%, which is well above the city average and offers meaningful cash flow.
What these high-yield neighborhoods in Daegu share is a combination of large renter bases driven by employment (like the Seongseo industrial area) or education (like Kyungpook National University), paired with purchase prices that haven't been bid up by school-zone premiums.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Daegu.
Where are the lowest-yield areas in Daegu as of 2026?
As of early 2026, the three lowest-yield neighborhoods in Daegu are Beomeo-dong and Manchon-dong in Suseong-gu, along with select trophy pockets near the most desirable school zones and high-end apartment complexes.
In these premium areas of Daegu, gross rental yields typically range from just 2.7% to 3.4%, which is significantly below the city average and offers limited cash flow despite strong capital preservation.
The main reason yields are compressed in Suseong-gu's premium neighborhoods is that purchase prices are elevated by school-zone demand and prestige, while rents don't rise proportionally because there's a ceiling on what tenants will pay.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Daegu.
Which areas have the lowest vacancy in Daegu as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Daegu are the corridors near Dongdaegu Station, the Seongseo industrial and employment zone in Dalseo-gu, and central Jung-gu around Dongseongno for small units.
In these low-vacancy areas of Daegu, vacancy rates typically range from just 3% to 4%, meaning landlords can expect their units to stay occupied with minimal downtime between tenants.
The main demand driver keeping vacancy low in these Daegu neighborhoods is the concentration of jobs and transit access, which creates a steady flow of workers, commuters, and young professionals who need convenient housing.
The trade-off investors face when targeting these low-vacancy areas is that purchase prices tend to be firmer near transit nodes and employment hubs, which can compress your yield even though occupancy is reliable.
Which areas have the most renter demand in Daegu right now?
The three neighborhoods currently experiencing the strongest renter demand in Daegu are the Dongdaegu Station area for its commuting convenience, the Seongseo employment belt in Dalseo-gu for workforce rentals, and central Jung-gu around Dongseongno for singles and couples seeking city-center living.
The dominant renter profile driving demand in these areas includes young professionals, industrial workers, and single-person households who prioritize transit access and proximity to jobs over space or school zones.
In these high-demand Daegu neighborhoods, well-priced rental listings typically get filled within one to two weeks, especially for compact units in good condition near transit stations.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Daegu.
Which upcoming projects could boost rents and rental yields in Daegu as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Daegu are the Daegu-Gyeongbuk New Integrated Airport, the Daegu Industrial Line Railroad connecting Seodaegu Station to the national industrial complex, and the Smart City specialized complex program bringing jobs and new development zones.
The neighborhoods most likely to benefit from these projects include areas along the new rail corridor near Seodaegu Station, districts connected to the airport's logistics and economic zone, and the designated smart city development areas that will concentrate employment.
Once these projects are completed, investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods, though the timeline varies and the largest gains will come to areas that gain the most in accessibility or job density.
You'll find our latest property market analysis about Daegu here.
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What property type should I buy for renting in Daegu as of 2026?
Between studios and larger units in Daegu, which performs best in 2026?
As of early 2026, studios and compact one-bedroom units in Daegu generally outperform larger units in terms of rental yield and occupancy, making them the better choice for investors focused on cash flow.
Studios in Daegu typically deliver gross yields of around 4.0% to 5.0% (roughly ₩3.8 million to ₩4.8 million per ₩100 million invested, or about $2,700 to $3,400 USD and €2,500 to €3,100 EUR annually), while larger two to three bedroom units tend to yield 3.2% to 4.0%.
The main factor explaining why smaller units outperform in Daegu is that rent per square meter stays relatively strong for compact spaces while purchase prices don't rise proportionally, giving landlords better yield per won invested.
However, larger family-sized apartments can be the better investment choice in premium school-zone areas like Suseong-gu, where families are willing to pay stable rents and stay for longer lease terms, reducing turnover costs.
What property types are in most demand in Daegu as of 2026?
As of early 2026, the most in-demand property type for renters in Daegu is the standard apartment (아파트), which dominates tenant preferences due to its security, amenities, and ease of leasing.
The top three property types ranked by current tenant demand in Daegu are apartments (most preferred), officetels near transit and business nodes for singles and couples, and well-maintained villas with good layouts in convenient locations.
The primary demographic trend driving this demand pattern in Daegu is the growth of single-person and two-person households, particularly young professionals and workers in industrial zones, who prioritize convenience and transit access.
Detached houses (단독주택) are currently underperforming in tenant demand and likely to remain so in Daegu, as they are too property-specific, often lack the amenities renters want, and carry higher maintenance expectations.
What unit size has the best yield per m² in Daegu as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Daegu is typically between 20 and 45 square meters, which captures studios and compact one-bedroom apartments in renter-demand zones.
For this optimal unit size in Daegu, the typical gross rental yield per square meter translates to monthly rents of around ₩25,000 to ₩35,000 per m² (approximately $18 to $25 USD and €16 to €23 EUR per m² monthly), resulting in stronger overall returns relative to purchase cost.
Smaller units under 20 m² can be too niche and harder to lease consistently, while larger units above 50 m² see rent per square meter drop because tenants aren't willing to pay proportionally more for extra space in Daegu's rental market.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Daegu.
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 costs cut my net yield in Daegu as of 2026?
What are typical property taxes and recurring local fees in Daegu as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Daegu ranges from about ₩600,000 to ₩1.8 million (roughly $430 to $1,300 USD and €400 to €1,200 EUR), depending on the assessed value of your property.
Beyond property tax, landlords in Daegu should also budget for local surtaxes and potential exposure to the Comprehensive Real Estate Holding Tax if they own higher-value properties or multiple units, though many single-unit landlords won't trigger significant amounts.
In total, these taxes and recurring fees typically represent about 0.2% to 0.6% of property value per year, which translates to roughly 5% to 15% of gross rental income for a typical Daegu investment property.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Daegu.
What insurance, maintenance, and annual repair costs should landlords budget in Daegu right now?
The estimated annual landlord insurance cost for a typical rental property in Daegu is relatively modest, usually between ₩100,000 and ₩300,000 (roughly $70 to $215 USD and €65 to €200 EUR), as most Korean landlords carry basic fire and liability coverage.
For maintenance and repairs, landlords in Daegu should budget approximately 0.6% to 1.2% of property value per year, which works out to around ₩1.8 million to ₩3.6 million annually for a ₩300 million property (about $1,300 to $2,600 USD and €1,200 to €2,400 EUR).
The type of repair expense that most commonly catches Daegu landlords off guard is plumbing and waterproofing issues in older buildings, especially in villas and low-rise multifamily stock where deferred maintenance can suddenly become urgent.
In total, landlords should realistically budget around ₩2 million to ₩4 million annually (approximately $1,400 to $2,900 USD and €1,300 to €2,600 EUR) for the combined cost of insurance, maintenance, and repairs on a typical Daegu rental property.
Which utilities do landlords typically pay, and what do they cost in Daegu right now?
In Daegu, tenants typically pay their own utilities including electricity, gas, water, and internet, while landlords are more often responsible for building-level common-area charges and management fees, especially in apartments and officetels.
The estimated monthly cost for landlord-paid utilities in a typical Daegu rental unit averages around ₩20,000 to ₩80,000 (roughly $14 to $57 USD and €13 to €53 EUR), mainly covering vacancy-period minimums and occasional common-area contributions rather than ongoing tenant utilities.
What does full-service property management cost, including leasing, in Daegu as of 2026?
As of early 2026, full-service property management in Daegu typically costs between 3% and 6% of monthly rent (roughly ₩30,000 to ₩60,000 per month on a ₩1 million rent, or about $21 to $43 USD and €20 to €40 EUR monthly), depending on the depth of service provided.
On top of ongoing management, the typical leasing or tenant-placement fee in Daegu is regulated under Korea's capped brokerage fee framework, which usually amounts to 0.3% to 0.5% of the lease value (for example, around ₩300,000 to ₩500,000 on a ₩100 million deposit lease, or roughly $215 to $360 USD and €200 to €330 EUR per turnover).
What's a realistic vacancy buffer in Daegu as of 2026?
As of early 2026, landlords in Daegu should set aside approximately 8% of annual rental income as a vacancy buffer, which provides conservative protection against turnover gaps and seasonal leasing slowdowns.
This 8% buffer translates to roughly one month vacant per year, though landlords in high-demand corridors like Dongdaegu Station or Seongseo may experience only two to three weeks of vacancy, while those in softer areas might see four to six weeks.
Buying real estate in Daegu can be risky
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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) R-ONE Portal | Korea's official real estate statistics body that publishes nationally recognized housing market indicators. | We used it to anchor Daegu's late-2025 price and rent trend direction. We also used it as a timing check so our early-2026 narrative matches official reporting cadence. |
| MOLIT Actual Transaction Price Disclosure System (RTMS) | The government's official platform for reported real estate transaction data covering both sales and leases. | We used it to ground our yield calculations in what people actually paid rather than asking prices. We also used it to interpret rent structures like jeonse, wolse, and ban-jeonse that directly impact investor cash yield. |
| Korea Open Data Portal (data.go.kr) | The official national open-data catalog that mirrors MOLIT's transaction reporting datasets. | We used it as the transparent method reference for pulling Daegu transaction-based sale prices and rental terms by district. We used the dataset structure to define our yield conversion approach consistently across property types. |
| Statistics Korea 2020 Population and Housing Census | The national statistical authority and the census is the baseline reference for vacancy and housing stock. | We used it as the baseline structural vacancy reference point. We then adjusted to early-2026 using newer market signals rather than treating the census as a live monthly vacancy tracker. |
| KOSIS (Korean Statistical Information Service) | Statistics Korea's official database for government statistics covering housing and demographics. | We used it as the canonical gateway for checking official housing and demographic series availability around Daegu. We used it to triangulate what is officially measurable versus what must be estimated from transactions. |
| BIS Residential Property Price Series (via FRED) | BIS series are a standard cross-country reference used by central banks and researchers for housing cycles. | We used it to contextualize Korea's broader housing cycle so Daegu's yields are interpreted against the national macro backdrop. We used it only for macro context, not for Daegu's local yield numerators or denominators. |
| Ministry of Land, Infrastructure and Transport (MOLIT) English Site | The official ministry responsible for housing policy, transactions, and major infrastructure plans in Korea. | We used it to support policy and market-structure statements about why wolse share matters and how reporting systems work. We also used it to keep our early-2026 framing aligned with the ministry's current policy posture. |
| Seoul Metropolitan Government Brokerage Fee Guide | An official public-sector explainer of the legally capped brokerage fee framework used nationwide. | We used it to size one-off leasing and transaction costs that affect net yield, especially during tenant turnover. We used it as a conservative, regulation-anchored reference rather than relying on informal agent anecdotes. |
| Korea Law Translation Comprehensive Real Estate Holding Tax Act | The official legal text translation platform for Korean statutes showing what the law actually says. | We used it to anchor that Korea has a national holding-tax layer for higher-value and multi-home owners. We then translated that into practical net yield drag ranges depending on property value and ownership profile. |
| Daegu Metropolitan City Official Portal | The city's own official description of major infrastructure projects and timelines. | We used it to identify rent demand catalysts that are genuinely Daegu-specific, like the airport relocation and rail nodes. We then mapped those catalysts to concrete micro-areas that typically benefit. |
| Smart City Korea Government Portal | An official national portal aggregating MOLIT-linked smart-city programs and announcements. | We used it to support pipeline projects that can shift renter demand through jobs and new districts. We used it only where it connects to plausible residential rent uplift corridors. |
| Savills Korea Residential Market Outlook | Savills is a major global real estate consultancy with published methodology and consistent reporting. | We used it to validate the structural trend in Korea toward monthly rent (wolse) and the implications for investor cash yields. We treated it as a macro and structure cross-check while keeping local Daegu yield math transaction-based. |
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