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
Property prices in Daejeon are experiencing significant upward momentum as of June 2025, driven by the city's transformation into a major tech and innovation hub.
The average price per square meter has reached 5.2-6.2 million KRW for all residential types, with new apartment complexes averaging 6.17 million KRW per square meter - a remarkable 55.9% increase from 2021 levels.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Korea, based on reliable facts and data, not opinions or rumors.
Daejeon's property market is experiencing substantial growth with prices rising 10.67% year-on-year and 55.9% over three years.
Innovation districts like Yuseong-gu, Seo-gu, and Daedeok-gu are leading price appreciation while older areas face stagnation.
| Metric | Current Value (2025) | Trend/Change |
|---|---|---|
| Average price per m² (all homes) | 4-5.2 million KRW | +10.67% year-on-year |
| New apartment price per 3.3㎡ | 20.35 million KRW | +55.9% from 2021 |
| City center apartments | 7.5 million KRW per m² | Premium pricing |
| Price-to-income ratio | 10.9 | Growing affordability concerns |
| Mortgage as % of income | 77.6% | Financial pressure on buyers |
| Apartment transactions 2024 | 18,000 units | +9.8% from 2023 |
| Population growth 2024 | +1.2% | Youth demographic leading |
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.
How much have property prices increased in Daejeon during 2025?
Property prices in Daejeon have surged dramatically in 2025, with the city experiencing a 10.67% year-on-year increase through the first half of the year.
This growth rate significantly outpaces most other major South Korean cities outside Seoul. The average price per square meter for all residential properties now ranges between 4-5.2 million KRW, while new apartment complexes command premium prices of approximately 6.17 million KRW per square meter.
The price appreciation has been particularly pronounced in new developments, where the average sale price per 3.3㎡ (1 pyeong) reached 20.35 million KRW in 2024, representing a staggering 55.9% increase from the 13.05 million KRW recorded in 2021. This three-year growth trajectory demonstrates the sustained momentum in Daejeon's property market.
Transaction volumes have also increased substantially, with apartment purchase transactions rising from 16,400 in 2023 to 18,000 in 2024, reflecting strong underlying demand. As we reach mid-2025, this upward trend continues to characterize the Daejeon residential market.
The price increases are being driven by multiple factors including the city's growing reputation as a tech hub, infrastructure investments, and an influx of young professionals.
Which districts in Daejeon are seeing the fastest property price growth?
Three districts are leading Daejeon's property price surge: Yuseong-gu, Seo-gu, and Daedeok-gu, each benefiting from distinct advantages that attract buyers and investors.
Yuseong-gu has become a magnet for property investment due to its proximity to prestigious institutions like KAIST and Chungnam National University. The concentration of academic and research facilities has created sustained demand from students, faculty, and young professionals, driving property values significantly higher than the city average.
Seo-gu, particularly the Dunsan-dong area, is experiencing rapid appreciation due to its modern infrastructure and status as a central business district. The area has attracted numerous tech companies and corporate headquarters, with government recognition as a key commercial hub further boosting its appeal. Property values in Dunsan-dong contributed significantly to the 12.18% year-over-year price jump recorded in 2020, and this momentum has continued through 2025.
Daedeok-gu benefits from its designation as a research and technology hub, housing the famous Daedeok Innopolis with over 20 major research institutes and 40+ corporate research centers. This concentration of high-tech industries and R&D facilities creates exceptional demand for housing from well-paid professionals.
In contrast, older districts like Dong-gu and Jung-gu have experienced price declines or stagnation due to aging infrastructure and fewer new development projects, creating a clear two-tier market within Daejeon.
What are the current average property prices in Daejeon as of June 2025?
As of June 2025, Daejeon's residential property market shows significant price variations depending on location and property type.
| Property Type/Location | Price per Square Meter | Price per 3.3㎡ (Pyeong) |
|---|---|---|
| City center apartments | 7.5 million KRW | 24.75 million KRW |
| New apartment complexes (2024) | 6.17 million KRW | 20.35 million KRW |
| All residential types (average) | 4-5.2 million KRW | 13.2-17.16 million KRW |
| Outside city center | Lower than center | Varies by district |
| Premium districts (Yuseong, Seo-gu) | Above 6 million KRW | Above 20 million KRW |
| Older districts (Dong-gu, Jung-gu) | Below 4 million KRW | Below 13 million KRW |
| Villas and single-family homes | 3-4 million KRW | 9.9-13.2 million KRW |
These prices reflect a mature market with clear segmentation between premium innovation districts and traditional residential areas.
How do current interest rates affect Daejeon's property market?
The Bank of Korea's recent interest rate cuts are creating mixed effects on Daejeon's property market, with policy rates falling to 2.5% as of June 2025.
The central bank has implemented four consecutive rate cuts, reducing the base rate from 3.5% to 2.5% to stimulate economic growth. However, mortgage rates have not fallen proportionally due to government efforts to prevent property market overheating and control household debt expansion.
Weighted average interest rates on newly issued housing loans actually increased from 3.5% in July 2024 to 4.23% by February 2025, despite the monetary easing. This contradiction stems from stricter government regulations, including enhanced stressed debt-service ratio (DSR) rules implemented in September 2024.
The Bank of Korea has specifically warned that excessive rate cuts could cause property price upswings in cities like Daejeon where demand remains strong. Lower borrowing costs have made mortgages more accessible for qualified buyers, but tighter lending standards have offset much of this benefit.
Major banks have responded by halting mortgage loans for multiple homeowners and raising lending rates, with KB Kookmin deciding not to provide credit loans exceeding customers' annual incomes. These measures are designed to moderate demand while the city experiences rapid price growth.
For prospective buyers in Daejeon, this environment means that while policy rates are low, actual mortgage costs remain elevated, requiring strong financial credentials to secure favorable lending terms.
Which property types are experiencing the biggest price surges in Daejeon?
Apartments are decisively leading Daejeon's property price surge, particularly new complexes and those located near research and technology hubs.
New apartment developments have seen the most dramatic appreciation, with sales prices jumping 55.9% over three years and 13.4% year-on-year in early 2024. Modern apartments near KAIST, Chungnam National University, and Daedeok Innopolis command premium prices due to high demand from tech professionals and academics.
Within the apartment segment, units in innovation districts like Yuseong-gu and Seo-gu have outperformed significantly. These areas benefit from proximity to high-paying employment centers and modern infrastructure, creating a virtuous cycle of demand and appreciation.
Villas and single-family homes have not appreciated as rapidly, with some experiencing stagnation or declines, especially in older districts. Traditional row houses and detached homes lack the modern amenities and convenience that today's buyers prioritize.
Rental yields for apartments in Daejeon city center average 1.7%, which is lower than in cities like Incheon or Busan, reflecting rapid price appreciation relative to rental income growth. This dynamic indicates that capital appreciation has been the primary driver of apartment investment returns.
The preference for apartments aligns with broader South Korean demographic trends, where young professionals increasingly favor modern, convenient living spaces over traditional housing types. It's something we develop in our South Korea property pack.
What is the property price forecast for Daejeon in 2026-2027?
Property price forecasts for Daejeon suggest continued growth through 2026-2027, though at a more moderate pace than the exceptional gains of recent years.
Short-term projections for the remainder of 2025 and into 2026 indicate that innovation districts (Yuseong-gu, Seo-gu, Daedeok-gu) will continue to see price appreciation, albeit at a slower rate as government stabilization measures take effect. Regional cities including Daejeon are expected to see annual changes between 0% and 2% according to market analysts.
Medium-term forecasts for 2026-2030 suggest urban centers will experience moderate growth of 2-5% CAGR, with Daejeon well-positioned within this range due to its tech sector strength. The city's continued infrastructure investments and urban renewal projects are expected to support steady appreciation.
Government interventions including rent controls, stricter lending standards, and supply-side measures are expected to help stabilize prices and prevent the kind of rapid speculation seen in 2021-2024. The implementation of stressed debt-service ratio regulations will likely moderate buyer behavior.
Urban renewal projects in Dong-gu, Jung-gu, and the Daejeon Station area are expected to revitalize older districts, potentially reducing the price gap between premium and traditional areas. These mixed-use developments and improved public transport connections should boost property values in affected neighborhoods.
The long-term outlook remains positive due to Daejeon's demographic advantages, with population growing 1.2% in 2024 and a notably young population (27.7% under 30) driving housing demand. However, affordability constraints and policy measures should prevent the unsustainable price spirals of the recent past.
Get fresh and reliable information about the market in Daejeon
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How does Daejeon's population growth impact property demand?
Daejeon's population growth is creating sustained upward pressure on property demand, with 2024 showing a 1.2% increase that significantly outpaces national trends.
The city's demographic composition is particularly favorable for property demand, with 27.7% of residents being young people - 2.2% above the national average. This young population is drawn by educational and technology sector opportunities, especially in districts like Yuseong-gu and Daedeok-gu.
Migration patterns show that professionals are relocating to Daejeon specifically for tech jobs and research positions. The city's designation as South Korea's 4th best startup ecosystem and a leader in Healthtech and Software & Data has accelerated this influx of skilled workers.
International student enrollment is also contributing to housing demand, with South Korea's Study Korea 300K Project aiming to increase foreign students to 300,000 by 2027. Daejeon's "2048 Grand Plan" to become a hyper-connected transportation hub positions it to capture a significant portion of these students.
However, the rapid population growth has created a housing shortage, particularly for student accommodation and entry-level professionals. This supply-demand imbalance is a key factor driving the sustained price appreciation across all property types.
The demographic trend strongly favors continued housing demand growth, as young professionals typically progress from rental to ownership as their careers advance. This pipeline effect suggests sustained market support for several years ahead.
What major infrastructure projects are affecting property values in Daejeon?
Several major infrastructure initiatives are significantly boosting property values across Daejeon, with the city investing 1.262 trillion won by 2025 in smart city transformation.
The Daejeon City light rail Line 2 project represents one of the most impactful developments, improving connectivity across districts and making previously less accessible areas more attractive to residents and investors. This transportation upgrade directly impacts property values along the planned routes.
The Daejeon Station Area Reorganization project is revitalizing the central districts, creating mixed-use developments that combine residential, commercial, and office spaces. This Complex 2 Zone development is transforming the area into a modern urban center with enhanced amenities and improved public transportation links.
Smart city infrastructure investments include wireless charging electric buses, revamped public transport routes, and advanced digital services across transportation, safety, and economic sectors. These improvements enhance the overall livability and attractiveness of the city for residents and businesses.
The development of next-generation robot innovation hubs and aerospace technology centers is creating high-value employment opportunities that drive demand for quality housing. These specialized industrial clusters attract well-paid professionals who can afford premium housing.
Urban renewal projects in traditionally less desirable areas like Dong-gu and Jung-gu are beginning to narrow the price gap with premium districts. As these infrastructure improvements take effect, property values in these areas are expected to appreciate more rapidly. It's something we develop in our South Korea property pack.
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.
How do Daejeon property prices compare to other major Korean cities?
Daejeon's property market performance positions it as one of South Korea's most dynamic regional cities, with price growth outpacing most major urban centers outside Seoul.
| City | Avg Price per 3.3㎡ (KRW) | 3-Year Price Increase (%) | YoY Growth Rate (2024-2025) |
|---|---|---|---|
| Seoul | 13.4 million | ~25% | 3.63% |
| Busan | 23.6 million | 57.4% | -1.94% |
| Daejeon | 20.35 million | 55.9% | 10.67% |
| Incheon | 12.1 million | ~20% | 0.63% |
| Daegu | 6.7 million | 19.7% | -3.87% |
Daejeon's 10.67% year-on-year growth significantly outperforms Seoul (3.63%), Incheon (0.63%), and contrasts sharply with declining markets in Busan (-1.94%) and Daegu (-3.87%). Only Busan shows comparable three-year appreciation at 57.4%, though it's now experiencing price corrections.
Despite strong price growth, Daejeon remains more affordable than Seoul, with living costs approximately 33% lower according to comparative studies. This affordability advantage, combined with robust job growth in tech sectors, continues to attract residents from more expensive markets.
The city's price-to-income ratio of 10.9 is significantly lower than Seoul's 26.9, though it signals growing affordability concerns for average earners. This ratio suggests Daejeon is entering a more mature pricing phase where further rapid appreciation may face natural constraints.
What are the mortgage and affordability conditions in Daejeon currently?
Mortgage affordability in Daejeon is becoming increasingly challenging as property prices outpace income growth, with current conditions requiring careful financial planning from prospective buyers.
Mortgage payments now represent 77.6% of average income in Daejeon, indicating significant financial pressure on typical buyers. This ratio has increased substantially as property prices surged 55.9% over three years while wage growth remained modest.
The weighted average interest rate on newly issued housing loans reached 4.23% by February 2025, up from a three-year low of 3.5% in July 2024. Despite the Bank of Korea's rate cuts, actual mortgage rates remain elevated due to government credit tightening measures.
Stressed debt-service ratio (DSR) regulations implemented in September 2024 have reduced lending limits by 2-4% based on loan types. Banks now apply surplus interest calculations to reflect potential future rate hikes, effectively reducing borrowing capacity for many applicants.
Major lenders have implemented additional restrictions, with KB Kookmin Bank refusing credit loans exceeding customers' annual incomes and several banks halting mortgage loans for multiple property owners. These measures specifically target speculative activity while making homeownership more challenging for first-time buyers.
The price-to-income ratio of 10.9 suggests that a typical household would need nearly 11 years of gross income to purchase an average property - a level that economists consider stressed but not yet critical. For comparison, Seoul's ratio of 26.9 indicates much more severe affordability constraints.
First-time buyers in Daejeon typically require substantial down payments (20-30%) and stable employment with major employers or tech companies to qualify for favorable lending terms. It's something we develop in our South Korea property pack.
Are there any signs of property market cooling in Daejeon?
While Daejeon's property market continues to show strength, several indicators suggest a gradual moderation from the exceptional growth rates of 2021-2024.
Government intervention measures are beginning to impact market dynamics, with stricter DSR regulations and enhanced lending scrutiny reducing speculative activity. The implementation of stressed interest calculations and tighter mortgage requirements are moderating buyer behavior, particularly among investors.
Rental price trends show some cooling, with Daejeon experiencing a decrease in rents between 0.1% and 2.5% year-on-year as of early 2025. This contrasts with rental growth in Seoul (2.7%) and Incheon (3.8%), suggesting that rapid property price appreciation is creating affordability pressures.
Transaction volume data indicates some moderation, though total purchases increased from 16,400 in 2023 to 18,000 in 2024 - a 9.8% increase that's substantial but lower than the double-digit growth rates seen in previous years.
Affordability constraints are becoming more pronounced, with mortgage payments consuming 77.6% of average income. This level of financial stress typically leads to natural demand moderation as fewer households can qualify for financing.
However, fundamental demand drivers remain strong: population growth of 1.2% in 2024, continued tech sector expansion, major infrastructure investments, and the young demographic profile (27.7% under 30) that supports sustained housing formation.
Market analysts expect prices to continue rising but at a more sustainable pace, with annual appreciation rates likely settling in the 2-5% range rather than the exceptional double-digit gains of recent years.
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.
Based on comprehensive analysis of current market conditions, demographic trends, infrastructure investments, and policy impacts, property prices in Daejeon are definitively going up - and significantly so.
The evidence overwhelmingly supports continued price appreciation driven by the city's transformation into a major tech hub, sustained population growth, and substantial infrastructure investments, though at a more moderate pace than the exceptional 55.9% three-year surge.
Sources
- Daejeon Real Estate Market Analysis
- South Korea Property Market Analysis
- Daejeon Real Estate Forecasts
- Daejeon Property Investment Data
- Daejeon Housing Transaction Statistics
- Daejeon Real Estate Districts Analysis
- South Korea Housing Market Forecast
- Bank of Korea Interest Rate Policy
- South Korea Real Estate Trends
- Daejeon Property Investment Guide