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The Daejeon property market is experiencing significant growth, with apartment prices reaching 5.2 to 6.2 million KRW per square meter in 2025.
Property values have surged 55.9% since 2021, driven by tech sector expansion and strong migration patterns. Transaction volumes increased 9.8% year-over-year, while rental prices climbed 10.7% in the city center, reflecting robust demand across all segments.
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Daejeon's residential market shows strong momentum with apartment prices averaging 5.2-6.2 million KRW per square meter and rental growth of 10.7% annually.
The market benefits from tech sector growth, population increases, and government infrastructure investments, with experts forecasting 8-14% price growth over the next 12-24 months.
| Market Indicator | Current Status | Year-over-Year Change |
|---|---|---|
| Apartment Price per m² | 5.2-6.2 million KRW | +10.67% |
| City Center Rent (2BR) | 701,000 KRW/month | +10.7% |
| Transaction Volume | 18,000 units (2024) | +9.8% |
| Vacancy Rate | 9.1% | Slightly elevated |
| Population Growth | 1,639,601 residents | +0.25-0.64% |
| Mortgage Interest Rate | 3.96-3.98% | Stable |
| Expert Price Forecast | 8-14% annual growth | Next 12-24 months |
What's the current average price per square meter for apartments and houses in Daejeon?
As of September 2025, apartment prices in Daejeon average between 5.2 to 6.2 million KRW per square meter.
Premium districts like Yuseong-gu and Seo-gu command higher prices, with new developments reaching up to 7.5 million KRW per square meter. These areas benefit from better infrastructure, proximity to tech companies, and modern amenities that justify the premium pricing.
Detached houses and villas are more affordable, typically priced at 3 to 4 million KRW per square meter in older districts such as Dong-gu and Jung-gu. The price difference reflects the age of buildings, location desirability, and available facilities in each area.
The city center consistently maintains the highest property values, while suburban areas offer more affordable options for budget-conscious buyers. This pricing structure creates clear market segments for different buyer profiles and investment strategies.
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How have property prices in Daejeon changed over the past 5 years, both in percentage and absolute numbers?
Daejeon property prices have experienced remarkable growth over the past five years, increasing by 55.9% since 2021.
In absolute terms, the average price per pyeong (3.3 square meters) rose from 13.05 million KRW in 2021 to 20.35 million KRW in 2024/2025. This represents an increase of 7.3 million KRW per pyeong over the four-year period.
New apartment complexes have seen even stronger appreciation, with prices climbing 35% over the last four years. The annual growth rate currently stands at 10.67% year-over-year, indicating sustained momentum in the market.
This price surge reflects Daejeon's transformation into a major tech hub, increased government investment in infrastructure, and growing demand from young professionals relocating to the city. The combination of limited supply and strong demand has created favorable conditions for property appreciation.
What's the current average monthly rent for a two-bedroom apartment in the city center versus the suburbs?
| Location | Average Monthly Rent (KRW) | Price Range (KRW) |
|---|---|---|
| City Center (2BR) | 701,000 | 650,000 - 800,000 |
| Suburbs (2BR) | 341,000 | 250,000 - 430,000 |
| Premium Districts | 850,000 | 750,000 - 1,000,000 |
| Older Districts | 280,000 | 200,000 - 350,000 |
| Near Universities | 400,000 | 300,000 - 500,000 |
| Tech District Areas | 750,000 | 650,000 - 900,000 |
| Traditional Neighborhoods | 320,000 | 250,000 - 400,000 |
How have rental prices shifted in the last 12 months, and by what percentage?
Rental prices in Daejeon have increased significantly over the past 12 months, with city center apartments experiencing the steepest rises.
City center two-bedroom apartments saw rents climb by approximately 10.7%, rising from around 620,000 KRW to 701,000 KRW monthly. This matches the overall property price appreciation rate, indicating a strong correlation between purchase and rental markets.
Suburban areas experienced more modest increases of 2-4%, reflecting different demand dynamics and affordability considerations. The slower growth in suburban rents suggests that renters are increasingly price-sensitive in these areas.
The 10.7% annual increase for 84-square-meter units represents one of the highest rental growth rates in recent years. This upward pressure stems from increased demand from tech workers, limited new rental supply, and overall economic growth in the city.
What is the current property transaction volume per month, and how does it compare to the same period last year?
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Daejeon recorded 18,000 apartment transactions in 2024, representing a robust 9.8% increase from 16,400 transactions in 2023.
This translates to approximately 1,500 transactions per month on average, though seasonal variations typically see higher activity in spring and fall months. The consistent year-over-year growth demonstrates sustained buyer interest and market liquidity.
The 8-13% increase in transaction volumes reflects strong market confidence and accessibility. Buyers remain active despite rising prices, suggesting that demand fundamentals remain solid and financing remains accessible for most purchasers.
This transaction growth outpaces many other South Korean cities, indicating that Daejeon's property market offers attractive opportunities for both investors and owner-occupiers compared to more expensive metropolitan areas.
What's the current vacancy rate for residential properties in Daejeon, and how has it trended recently?
The residential vacancy rate in Daejeon stands at 9.1% as of April 2025, which is slightly elevated but still below national averages.
This vacancy rate has remained stable to slightly rising since late 2024, primarily due to new supply coming online and some commercial sector downturn affecting demand. The rate reflects normal market dynamics rather than any fundamental weakness.
The current vacancy level is considered healthy for a growing city, providing sufficient options for renters while not indicating oversupply. Most vacancies are concentrated in older buildings or areas with less desirable locations.
Recent trends show that premium developments and well-located properties maintain much lower vacancy rates, often below 5%, while older or poorly positioned properties may experience higher vacancy levels above the city average.
How many new housing units are planned or under construction in Daejeon for the next 2–3 years?
Over 32,674 new residential units are planned or under construction in Daejeon for 2025-2026.
This development pipeline forms part of South Korea's national initiative to add 830,000 new housing units across metropolitan areas by 2025. While most of this national supply targets Seoul, Gyeonggi, and Incheon, Daejeon receives a significant allocation reflecting its growing importance.
The new supply primarily focuses on modern apartment complexes in developing districts, with emphasis on smart home features and energy efficiency. Government incentives encourage developers to include affordable housing options within these projects.
This planned supply should help moderate price growth while meeting increasing demand from population growth and urban development. The timing of completions will be crucial for maintaining market balance over the next few years.
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What are the current mortgage interest rates in South Korea, and how do they impact affordability in Daejeon?
Current mortgage interest rates in South Korea average 3.96-3.98% as of August 2025, with the Bank of Korea's base rate maintained at 2.50%.
These rates remain relatively stable compared to global standards, providing reasonable financing costs for property buyers. However, rising property prices mean that mortgage payments now consume an average of 77.6% of income for typical Daejeon buyers.
The affordability challenge has intensified despite stable interest rates, as property price appreciation has outpaced income growth. Young professionals and first-time buyers face particular pressure, often requiring higher down payments or longer loan terms.
Banks maintain strict lending criteria, typically requiring 20-40% down payments depending on the property value and buyer's financial profile. This creates barriers for some potential buyers despite attractive interest rates.
What's the average time a property stays on the market before being sold in Daejeon right now?
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Properties in premium Daejeon districts typically sell within 40 days of listing, reflecting strong buyer demand and limited quality inventory.
Well-positioned apartments in desirable neighborhoods like Yuseong-gu and Seo-gu often receive multiple offers quickly, sometimes selling within 2-3 weeks. These areas benefit from proximity to tech companies, universities, and modern infrastructure.
Older districts may see properties listed for 90 days or more, particularly if they lack modern amenities or are in less convenient locations. Pricing strategy and property condition significantly influence sale timeline in these areas.
The overall market velocity remains strong, with most reasonably priced properties in good condition selling within 45-60 days. This indicates healthy market liquidity and active buyer participation across price segments.
How are government policies, such as taxes or housing regulations, expected to affect the Daejeon property market?
Government policies significantly influence Daejeon's property market through taxation and regulatory measures designed to maintain stability.
Acquisition tax rates range from 4.6% for standard purchases up to 9.4% in designated speculation zones, effectively discouraging speculative investment. Property taxes vary widely from 0.07% to 5% depending on property value and owner status, with higher rates for multiple property owners.
New regulations impose mortgage lending caps and provide incentives for rental housing construction, aiming to increase supply while controlling speculative demand. These measures particularly impact investment buyers who face stricter lending criteria.
Construction-focused policies accelerate new supply delivery, while region-specific taxes help stabilize price spikes in overheated areas. The government's balanced approach supports steady growth while preventing bubble formation.
Expected impacts include continued moderate price appreciation rather than explosive growth, improved rental supply from incentivized construction, and more balanced market participation between investors and owner-occupiers.
What's the current population growth rate in Daejeon, and how is migration affecting housing demand?
Daejeon's population grew between 0.25% and 0.64% annually in recent years, reaching 1,639,601 residents in 2025.
1. **Tech Industry Migration**: Young professionals relocating for jobs at major technology companies and research institutes2. **University Attraction**: Students and academics drawn to prestigious institutions like KAIST and Chungnam National University 3. **Government Sector Growth**: Public sector employees as Daejeon serves as an administrative hub4. **Infrastructure Development**: Families attracted by improved transportation links and urban amenities5. **Quality of Life Seekers**: People leaving more expensive cities like Seoul for better value and lifestyle6. **Research and Development Workers**: Scientists and engineers joining Daejeon's growing R&D sectorThis steady population growth creates consistent housing demand, particularly for modern apartments suitable for young professionals and families. The tech boom specifically drives demand for quality housing near employment centers.
Migration patterns favor rental demand initially, as new residents often rent before purchasing. This supports both rental and sales markets as people transition from renters to buyers over time.
How do experts forecast property price growth or decline in Daejeon over the next 12 to 24 months, with specific percentages?
Real estate analysts forecast continued property price growth of 8-14% annually in Daejeon's central districts and new developments over the next 12-24 months.
Premium areas are expected to lead appreciation due to limited supply and strong demand from tech sector workers. New developments with modern amenities should outperform older properties, which may see smaller gains or potential stagnation.
The expert consensus supports sustained upward momentum driven by tech sector expansion, infrastructure investment, and demographic growth. However, supply-side risks from planned construction may moderate increases in some segments.
Caution applies to older districts where appreciation may be limited by building age, infrastructure constraints, and buyer preferences for modern properties. These areas might experience 3-6% growth compared to premium district projections.
Overall market conditions remain favorable through 2026, though the pace of appreciation may moderate as supply increases and affordability constraints limit buyer pool expansion.
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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.
Daejeon's property market demonstrates strong fundamentals with consistent price growth, healthy transaction volumes, and positive demographic trends supporting continued appreciation.
While affordability challenges exist, the combination of tech sector growth, infrastructure development, and government support creates favorable conditions for both investors and residents seeking property opportunities.
Sources
- Daejeon Price Forecasts
- Daejeon Real Estate Market Trends
- Average Rent South Korea
- Reuters - South Korea Central Bank
- The Global Economy - South Korea Mortgage Rates
- World Population Review - Daejeon
- MK News - Real Estate
- MacroTrends - Daejeon Population
- Daejeon Real Estate Market
- Statista - Daejeon Housing Transactions