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Daegu's property market offers a compelling middle ground between Seoul's expensive prices and smaller cities' limited opportunities.
As of September 2025, apartment prices average $4,650 per square meter, making Daegu approximately 24-25% cheaper than Seoul and 10% more affordable than Busan. The market has stabilized after a 2024 correction, with modest 2-3% annual growth projected and clear district-by-district variations in performance.
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Daegu presents a stable property investment opportunity with moderate returns and significantly lower entry costs than Seoul or Busan.
The market has absorbed recent oversupply issues and shows promise for steady 2-3% annual appreciation through infrastructure development and demographic stability.
| Investment Factor | Current Status | Outlook |
|---|---|---|
| Average Apartment Price | $4,650/m² | 2-3% annual growth |
| Rental Yields | 1.0-1.6% gross | Stable |
| Resale Timeline | 3-6 months (central) | Improving |
| Entry Budget | $180,000-$300,000 | Accessible |
| Best Districts | Suseong-gu, Nam-gu | Strong fundamentals |
| Market Stage | Post-correction stability | Recovery phase |
| Foreign Ownership | Permitted with registration | No major restrictions |
What are the current average prices per square meter for apartments, houses, and commercial properties in Daegu?
Daegu apartment prices average $4,650 per square meter as of September 2025, representing a significant discount compared to Seoul's premium markets.
In Daegu's city center, apartment prices reach approximately $7,200 per square meter, while peripheral areas range from $4,650 to $5,800 per square meter. This price variation reflects the clear geographic premium for central locations with better transport links and amenities.
Detached houses and premium properties, particularly in upscale districts like Suseong-gu, command prices 10-20% above standard apartment rates. Commercial properties vary more widely based on location and building age, but typically exceed residential averages in the business core areas.
The current pricing structure makes Daegu approximately 24-25% cheaper than Seoul and roughly 10% more affordable than Busan for comparable property types and locations.
How have property prices in Daegu evolved over the past 5 years, and what are the short-term versus long-term trends?
Daegu property prices increased by approximately 27% over the five-year period from 2019 to 2025, though this growth wasn't uniform across all years.
The market experienced a notable correction in 2024 with a -3.9% price decline due to oversupply conditions and out-migration of younger residents. This correction followed several years of steady appreciation as the city developed its infrastructure and attracted new residents.
Short-term trends through 2027 indicate the market has bottomed out and stabilized, with modest 2-3% annual increases expected as excess housing stock gets absorbed. The correction period appears to have ended as supply-demand imbalances normalize.
Long-term prospects remain positive due to continued infrastructure investment and urban development projects. However, demographic challenges and ongoing construction activity are expected to moderate gains to approximately 1-3% annual growth over the next decade.
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Which districts in Daegu show the highest growth potential and which ones are stagnating or declining?
Suseong-gu leads Daegu's growth districts with its luxury residential developments, excellent schools, and strong expat appeal.
Nam-gu shows consistent growth potential thanks to its established expat community, quality amenities, and proximity to international facilities. Dong-gu represents an emerging opportunity with affordable entry points and planned infrastructure improvements.
These high-potential districts benefit from strategic urban planning, transportation development, and demographic stability that supports long-term property value appreciation.
Conversely, Dalseo-gu and portions of Buk-gu have experienced slower price appreciation due to oversupply issues and aging building stock. These areas face challenges from new construction competing with older properties and limited infrastructure upgrades.
Districts impacted by the 2023-2024 oversupply particularly in outer suburban areas continue to show stagnant performance as the market works through excess inventory.
What rental yields can you realistically expect in different areas of Daegu for apartments, villas, and houses?
| Property Type | Area | Gross Rental Yield |
|---|---|---|
| Apartments | City Center | 1.0-1.2% |
| Apartments | Suburban | 1.3-1.6% |
| Villas | All Areas | 1.0-1.6% |
| Houses | All Areas | 1.0-1.6% |
| Short-term Rentals | Tourist Areas | 3-5% |
| Student Housing | University Areas | 2-3% |
| Commercial | Business Districts | 2-4% |
How do vacancy rates differ between central, suburban, and university areas of Daegu?
Central Daegu maintains low vacancy rates due to consistent demand from students, young professionals, and urban workers seeking proximity to employment centers.
University areas experience moderate-to-low vacancy rates with steady tenant influx, though they face competition from new officetels and purpose-built student accommodation. The constant student population provides reliable rental demand despite higher turnover rates.
Suburban areas show higher vacancy rates primarily due to the substantial new housing supply delivered in recent years and slower household formation in these locations. Many suburban developments struggle with absorption rates as families prefer established neighborhoods.
The central area's transportation advantages and walkability continue to drive tenant preference, supporting occupancy rates even during broader market corrections.
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What is the typical time it takes to resell a property in Daegu, and how does this vary by property type and location?
Apartments in central Daegu locations typically resell within 3-6 months, benefiting from strong buyer interest and established market liquidity.
Houses, villas, and properties outside the core districts generally require 6-12 months for successful resale, with timing heavily influenced by local oversupply conditions and property condition. Older properties or those in areas with significant new construction face longer marketing periods.
Premium properties in sought-after districts like Suseong-gu often sell more quickly despite higher prices, while properties in oversupplied suburban developments may take 12+ months to find buyers.
Market conditions significantly impact resale timing, with the recent stabilization improving liquidity compared to the 2024 correction period when some properties remained on the market for extended periods.
How does new construction activity in Daegu affect supply and demand in the short and medium term?
New construction activity remains robust in Daegu, which has kept housing supply elevated and moderated price growth, particularly in emerging suburban areas.
The construction pipeline contributed to the 2023-2024 oversupply that drove the market correction, but this pipeline is now tapering as developers respond to market conditions. Medium-term, these completed projects will drive gradual absorption and support stable pricing.
Suburban districts continue to see the most new development activity, creating competition for existing properties but also indicating developer confidence in long-term demand growth.
Infrastructure improvements accompanying new developments, including transportation links and commercial facilities, eventually support property values in surrounding areas once initial oversupply pressures subside.
The current construction slowdown suggests supply-demand balance will improve over the next 2-3 years, supporting price stabilization and gradual appreciation.
What government policies, taxes, or restrictions could influence property values and foreign ownership in Daegu?
Foreign buyers can purchase property in Daegu with standard registration requirements, facing no major restrictions or prohibitive barriers to ownership.
Recent central bank rate cuts and increased infrastructure spending are stimulating property demand across South Korea, including Daegu's residential market. These monetary policy changes improve affordability and investment attractiveness.
Tighter mortgage rules and speculation taxes continue to apply for certain multi-home owners, though these primarily affect domestic investors rather than foreign buyers purchasing single properties.
Property taxes in Daegu remain lower than Seoul's rates, supporting investor interest and improving net returns for both domestic and international property owners. Local government policies generally favor development and foreign investment.
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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.
How do Daegu's property prices compare to other major Korean cities like Seoul and Busan right now?
Daegu offers significantly more affordable property prices compared to other major South Korean cities as of September 2025.
Seoul's city center apartment prices average $9,000 per square meter or higher, making Daegu approximately 24-25% cheaper for comparable properties. This price difference reflects Seoul's premium as the national capital and economic center.
Busan generally prices about 10% higher than Daegu per square meter for similar property types and locations, positioning Daegu as the most affordable major metropolitan option.
The affordability advantage extends across all property types, from luxury apartments to commercial real estate, making Daegu attractive for both investors seeking higher yields and residents wanting more space for their budget.
This price differential has remained relatively stable, suggesting Daegu's value proposition versus other major cities is likely to persist in the medium term.
What is the realistic budget range needed to buy a property in Daegu for living, for renting out, and for quick resale?
| Purchase Purpose | Entry Budget (USD) | Recommended Range (USD) |
|---|---|---|
| Own Residence | $180,000 - $300,000 | $220,000 - $400,000 |
| Rental Investment | $150,000 - $250,000 | $180,000 - $300,000 |
| Quick Resale | $200,000 - $350,000 | $240,000 - $450,000 |
| Luxury Properties | $400,000 - $600,000 | $500,000 - $800,000 |
| Student Rentals | $120,000 - $200,000 | $150,000 - $250,000 |
| Commercial Investment | $300,000 - $500,000 | $400,000 - $700,000 |
| Renovation Projects | $100,000 - $180,000 | $120,000 - $220,000 |
Which property types and neighborhoods offer the best balance of affordability, rental demand, and resale potential today?
Modern apartments in central districts provide the optimal balance of affordability, rental demand, and resale potential in today's Daegu market.
For affordability, Dong-gu, Seo-gu, and select areas of Buk-gu offer the lowest entry costs while maintaining reasonable access to city amenities and transportation. These areas are particularly suitable for first-time investors or buyers seeking maximum value.
Rental demand concentrates in the city center, Nam-gu, and university campus areas where consistent tenant flow from students, young professionals, and expat workers supports stable occupancy rates.
Resale potential favors Suseong-gu for luxury properties, Jung-gu for central location premium, and mature neighborhoods with planned infrastructure improvements. These areas demonstrate consistent buyer interest and price stability.
The sweet spot combines modern apartments in transitional areas like parts of Nam-gu and emerging sections of Dong-gu, where infrastructure development supports both current rental demand and future appreciation potential.
If you decide to buy now, how should you position yourself in terms of location, property type, and budget to maximize value over the next 3–10 years?
Focus purchasing efforts on modern apartments in central districts, particularly Suseong-gu and Nam-gu, which offer the best combination of stability and growth potential.
Emerging areas with new transport links, especially well-located parts of Dong-gu, present opportunities for higher appreciation as infrastructure develops and the area gains recognition.
Budget allocation should target the $220,000-$300,000 range to access diverse options and capitalize on current market stability. This budget range provides access to quality properties without overpaying for premium locations.
Avoid oversupplied outskirt projects that continue to face absorption challenges, and instead prioritize properties near universities or business districts that maintain steady rental demand.
Monitor infrastructure announcements and transportation development plans, as these create upside opportunities for properties in currently undervalued areas that benefit from future connectivity improvements.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Daegu's property market represents a measured investment opportunity with stable returns and reasonable entry costs compared to Seoul or Busan.
The current market stabilization following the 2024 correction creates favorable conditions for value-conscious buyers seeking steady appreciation rather than speculative gains.