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What will happen in Daejeon’s real estate market? Will prices go up or down? Is Daejeon still a hotspot for foreign investors? How is South Korea’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, developers, and clients who buy properties in Daejeon, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) More foreign buyers will invest in Daejeon as it gains a reputation as a tech hub
Foreign buyers are increasingly eyeing Daejeon as it gains fame as a tech city.
In recent years, Daejeon has been making waves with its tech infrastructure. The city has rolled out a massive investment plan, earmarking 1262 trillion won by 2025 to transform into a smart city. This ambitious plan includes smart services in transportation, safety, and the economy, making it a hot spot for tech enthusiasts.
Daejeon isn't just any tech hub; it's a leader in Asia. In 2023, it was crowned the top city in Asia in the Global Innovation Index by the World Intellectual Property Organisation. This accolade underscores Daejeon's strategic push for innovation and its allure for foreign investors. The city is also actively pursuing international collaborations, further enhancing its attractiveness.
Media buzz has amplified Daejeon's tech achievements. The Daejeon Technopark has been in the spotlight at international events like IFA, showcasing innovations such as high-speed delivery drones and AI-based beamforming technology. This kind of exposure is a magnet for foreign interest and investment in Daejeon's tech scene.
With its growing reputation and strategic initiatives, Daejeon is becoming a prime destination for those looking to invest in tech. The city's efforts to foster innovation and international partnerships are paying off, drawing attention from around the globe. Foreign investors are taking note, eager to be part of Daejeon's tech-driven future.
As Daejeon continues to evolve, its appeal to foreign buyers is only set to increase. The city's commitment to tech advancement and its strategic location make it a compelling choice for those looking to invest in a thriving tech hub. Daejeon's tech transformation is a game-changer, and the world is watching.
Sources: Smart City Korea, IFA Berlin Daily
2) Daejeon’s property prices will drop slightly due to too many new apartments being built
In Daejeon, the real estate market is facing a unique challenge with a noticeable increase in unsold new apartments.
By June 2024, the number of unsold units had surged by 90.8%, totaling 9,956. This oversupply is a major reason why real estate prices are expected to dip. If you're considering buying property here, this could mean more negotiating power for you.
Real estate agencies have reported a slowdown in demand for these new apartments. The government's focus on metropolitan areas has led to a polarized market, leaving Daejeon with more homes than buyers. This imbalance is likely to push prices down further, making it a potential buyer's market.
Adding to the situation, government data shows that the vacancy rate for new developments is climbing. As of August 2024, unsold homes in Daejeon increased by 2.6% from the previous month, reaching 16,461. This high vacancy rate highlights the oversupply issue, forcing developers to consider discounts or incentives to attract buyers.
For those looking to invest, this could be an opportunity to get a good deal. However, it's essential to keep an eye on how developers respond to this oversupply. They might offer attractive deals to move inventory, which could benefit savvy buyers.
Understanding these dynamics can give you an edge in the market. With the current trends, Daejeon might just be the place where you find your next home at a competitive price.
Sources: Daejeon Real Estate Trends, MK Economy, MK Real Estate
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.
3) Daejeon’s property prices will grow moderately as the city enhances its infrastructure
Daejeon is becoming a hotspot for property buyers as housing transactions jumped from 26,000 in 2022 to 32,000 in 2023.
Why the buzz? Well, the city is pouring money into infrastructure, like the new Daejeon City light rail Line 2. With 45 stops planned, this project will make getting around a breeze, drawing in more folks who want to live in a well-connected city.
And it's not just about the trains. Daejeon's metro area is growing, with the population expected to hit 1,586,000 by 2025. More people means more homes are needed, which could push property prices up as demand rises.
For those eyeing a property investment, this is a city on the move. The infrastructure upgrades and population growth are key drivers of the real estate market here, making it a promising spot for buyers.
Insiders know that Daejeon's development isn't just about numbers. The city's commitment to improving quality of life through better transport and urban planning is a major draw for new residents.
Overall, residential property prices in Daejeon are expected to see moderate growth as the city continues to develop its infrastructure, making it a smart choice for potential buyers looking for a vibrant and evolving urban environment.
Sources: Statista, Rail Journal, Macrotrends
4) Eco-friendly home construction in Daejeon will increase due to tax incentives for green buildings
Tax incentives are set to boost eco-friendly home construction in Daejeon.
South Korea's Green Building Activation Plan, which aims to cut greenhouse gas emissions by 88.1% by 2050, offers tax cuts based on energy efficiency. This makes it financially appealing for developers to go green. Imagine a city where every new building is designed with sustainability in mind, thanks to these incentives.
In Seoul, the percentage of green-certified prime office spaces doubled from 21% to 45% between 2019 and 2023. This shows a clear shift towards sustainable building practices, a trend that Daejeon could easily follow with the right push. It's like watching a wave of green architecture sweep across the country.
The demand for eco-friendly building materials is on the rise, with sales expected to grow at 8.91% annually from 2024 to 2029. This surge is fueled by both regulatory support and a growing consumer desire for sustainability. In Daejeon, tax incentives could be the catalyst that accelerates this trend even further.
Imagine walking through a neighborhood where every home is built with the latest eco-friendly materials, a direct result of these incentives. It's not just about saving money; it's about creating a healthier environment for everyone.
With the right incentives, Daejeon could become a leader in sustainable construction, setting an example for other cities to follow. The potential is there, and the demand is growing. It's an exciting time for anyone looking to invest in property in the area.
Sources: JLL Korea, Constructive Voices, GlobeNewswire
5) Property prices in Daejeon will rise gradually as it becomes a more appealing alternative to Seoul
Daejeon is becoming a hot spot for property buyers, with property prices rising in areas like Yuseong-gu, Seo-gu, and Daedeok-gu.
These districts are gaining popularity because they're close to major research institutions and have ongoing infrastructure projects. This makes them more appealing, which in turn drives up property values. The South Korean government is also playing a role by implementing policies to curb speculative buying in Seoul, potentially pushing investors to consider Daejeon instead.
Living in Daejeon is 33% cheaper than in Seoul, making it an attractive option for both residents and investors. This affordability, combined with the city's growing appeal, is likely to boost its real estate market. As more people move to Daejeon, the demand for housing naturally increases, further driving up property prices.
The city's focus on high-tech industries, especially in Daedeok Science Town, is another factor. With more tech companies choosing to relocate or expand in Daejeon, the demand for housing is on the rise. This trend is making Daejeon a more attractive alternative to Seoul for those in the tech industry.
As Daejeon continues to grow, it's becoming a more viable option for those looking to invest in property. The combination of affordability, government policies, and a focus on high-tech industries is creating a perfect storm for a real estate boom. If you're considering buying property in South Korea, Daejeon might just be the place to watch.
Sources: Daejeon Real Estate Trends, Living Cost Comparison, Global Property Guide
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6) Demand for student housing in Daejeon will rise as educational institutions expand
Daejeon is quickly becoming a magnet for international students thanks to its growing educational institutions.
South Korea's initiatives, like the Study Korea 300K Project, aim to boost foreign student numbers to 300,000 by 2027, making it easier for them to study here with increased part-time work allowances and lower visa financial requirements.
In 2023, the country saw a 24% jump in international student enrollment, reaching 207,125 students. Daejeon, with its strategic plans to become a national innovation hub, is poised to attract a significant portion of these students.
The city's "2048 Grand Plan" envisions Daejeon as a hyper-connected transportation city, indirectly supporting educational growth and drawing more international students.
However, there's a shortage of student accommodation in Daejeon, especially for international students, due to limited housing options and the complex Korean housing market.
Real estate developers are increasingly focusing on student housing projects, which could lead to more purpose-built student accommodations in Daejeon.
Sources: ICEF Monitor, Invest Korea, Korea JoongAng Daily
7) More foreign investors will enter Daejeon’s real estate market as international companies set up local offices
Foreign direct investment in South Korea has surged in recent years, especially in 2023 and 2024.
Daejeon is at the heart of this boom, thanks to its focus on strategic technologies like aerospace, bio-health, and robotics. The city has become a magnet for both government and private R&D investments. With affordable land leasing options in foreign investment zones, Daejeon makes it easy for international companies to set up shop.
Infrastructure is another big draw. The new Chungcheong Inland Railway boosts connectivity, making Daejeon even more attractive to foreign investors. The city’s top ranking in the Global Innovation Index underscores its strong innovation ecosystem, a major lure for global businesses eyeing tech and innovation sectors.
Government support plays a crucial role, offering incentives that make Daejeon a prime spot for international business. The city’s strategic initiatives are designed to attract foreign companies, and they’re working. More and more international firms are establishing local offices, drawn by the city’s favorable conditions.
As international companies set up in Daejeon, the real estate market is poised for growth. The influx of foreign businesses is expected to drive up demand for property, making it a promising area for investment. The city’s strategic location and supportive policies are key factors in this trend.
Sources: Invest Korea, IFA Berlin Daily, MK Politics, DWS E-Library, Korea Times
8) Demand for homes near green spaces and parks in Daejeon will grow
Daejeon's population is expected to hit 1,629,187 in 2024, and with more people comes a greater need for green spaces.
As urban life gets busier, folks are realizing the perks of having green spaces around. These areas do wonders for air quality and help cool down the city, plus they’re great for biodiversity and just hanging out. No wonder city folks are all about them.
Living near parks isn’t just about pretty views. Studies show it’s good for your health—less stress, better mental health, and you might even get more exercise. So, homes near these green spots are hot on the market for anyone wanting a healthier lifestyle.
The government’s been busy too, pushing for more parks and keeping the old ones nice. This shows they’re serious about making the city greener, which is a big draw for people who love these spaces.
People are willing to pay more for homes near parks. Surveys and market trends back this up, showing a clear preference for properties with easy access to green areas. It’s all about that healthier, more sustainable way of living.
Everywhere you look, from news articles to social media, green spaces are getting a lot of love. They’re seen as key to a better life, boosting the environment, health, and even property values. It’s no surprise they’re a big deal for anyone thinking of buying a home.
Sources: World Population Review, IIASA Blog, Korea Herald
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.
9) Property values in Dong-gu will drop as younger people move to modern areas
In Daejeon, younger people are flocking to modern districts for better amenities and infrastructure.
These younger folks are drawn to areas with high-quality education and cultural amenities, much like what's happening in Daegu. If Dong-gu doesn't catch up, it might face the same fate as other older districts that are being left behind.
Urban development in Daejeon is all about newer districts with high-density complexes that mix industries, housing, and cultural spots. This is a big magnet for the younger crowd, pulling them away from places like Dong-gu.
Modern districts are winning because they offer better public transportation and schools, making them a hit with young families. This is a trend seen across South Korea, where better living conditions are a major draw.
In Dong-gu, the lack of these modern perks could mean a decline in property values as the younger population moves to more appealing areas.
Without improvements, Dong-gu might struggle to keep up with the shifting preferences of younger generations, who are looking for more than just a place to live.
Sources: Smart City Korea, AI Skill Korea
10) Young professionals in Daejeon will be drawn to co-living spaces for affordable housing
The rise of co-living spaces is set to attract young professionals seeking affordable housing in Daejeon.
Back in 2022, the co-living market was valued at $13.3 billion, and it's expected to grow to $63.8 billion by 2028. This shows a strong demand for affordable housing, which co-living spaces can meet. In Daejeon, this trend is particularly appealing as traditional housing prices continue to climb.
In South Korea, rental prices have been on the rise, especially in cities like Seoul, where young professionals face 20 to 30% higher costs for similar properties. This makes co-living spaces, with their competitive pricing, an attractive option for those looking to save money while still enjoying city life.
Millennials and Gen Z are drawn to flexible living arrangements and social connections. Co-living spaces offer shared community areas and flexible lease terms, perfectly aligning with the lifestyle preferences of these younger generations. This makes them a popular choice for those who value both community and flexibility.
In Daejeon, co-living spaces are not just about affordability; they also provide a sense of community and belonging. Young professionals can enjoy shared amenities and social events, making it easier to connect with others and build a network in a new city.
As the demand for affordable and flexible housing solutions grows, co-living spaces in Daejeon are poised to become a key player in the housing market. They offer a unique blend of affordability, community, and flexibility that is hard to find in traditional housing options.
Sources: Tolj Commercial, JLL, Savills
11) City center property yields will drop as maintenance costs increase
Maintenance costs for city center properties are rising, especially in places like Daejeon.
Inflation is pushing up the prices of construction materials and labor, making it more expensive to maintain properties. Property owners are feeling the pinch as they have to spend more to keep their buildings in good shape. This means less money for other things, and they might have to lower rents or selling prices to manage these costs.
Living in Daejeon is getting pricier, and that includes housing. Higher living costs are squeezing property owners' profits. Reports and stories from property managers confirm that operational costs are climbing, which means the money made from these properties is likely to drop.
For those thinking about buying property in the country, it's important to know that the yield on city center properties might not be as high as expected. Rising maintenance costs are a big factor in this. Property owners are having to adjust their financial strategies to cope with these changes.
In the current market, investors need to be cautious and consider these rising costs when evaluating potential returns. The trend of increasing expenses is not just a temporary blip; it's something that could affect long-term profitability.
Understanding these dynamics is crucial for anyone looking to invest in city center properties. Being aware of the financial landscape can help in making informed decisions about property investments.
Sources: Northmarq, Expatistan, Global Property Guide
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12) Demand for home office spaces in Daejeon will grow due to remote work trends
Remote work is booming in South Korea, with a massive jump in home-based employees from 66,000 in 2015 to 1.1 million in 2021.
Even with a slight dip in remote workers by 2024, many still prefer flexible work setups. This trend means people want homes with dedicated office spaces to make remote work more comfortable.
The home office furniture market in South Korea is set to grow, aiming for a market volume of $627.40 million by 2029. This shows a clear need for functional home workspaces, pushing the demand for properties with office areas.
In Daejeon, real estate listings are likely to spotlight home office spaces. The city's thriving tech industry is attracting professionals, increasing the need for homes that can accommodate well-equipped offices.
As more people move to Daejeon for tech jobs, the demand for larger homes with office spaces will rise. This shift is crucial for anyone considering buying property in the area.
Sources: Statista, Statista, CXC Global
13) More investors will be drawn to Daedeok Innopolis as it gains fame as a tech innovation hub
Daedeok Innopolis is quickly becoming a hotspot for tech innovation, drawing the eyes of potential investors.
One big reason for this buzz is the increased government investment in tech infrastructure. Daejeon, the city where Daedeok Innopolis is located, has been busy developing industrial land and supporting startups and medium-sized businesses. This effort is making it a strong contender on the global science city stage.
Tech startups are popping up all over the place, and more companies are setting up shop here. By 2022, corporate sales in Daedeok Innopolis hit 25 trillion won, with 57 companies listed. This economic boom is likely to keep going, with more companies and R&D institutes moving in.
The area is a magnet for talent, boasting over 30,000 master's and doctoral researchers. This brainpower has sparked a wave of IT venture companies, solidifying its status as a tech hub. Institutions like KAIST and the Electronics and Telecommunications Research Institute are also here, offering plenty of tech job opportunities.
Daedeok Innopolis is a powerhouse in Korea's R&D scene, with a significant chunk of the country's R&D spending and Ph.D.-level researchers. The number of international patent registrations is set to rise dramatically, showing a strong push for innovation. The area has a track record of successful tech breakthroughs, which is a big draw for global attention.
Sources: IASP, Korea Times, Wikipedia, OAK Central
14) Rental yields will rise in older neighborhoods as modernization attracts new tenants
Rental yields in older neighborhoods are set to rise as these areas get a facelift and draw in new tenants.
When a neighborhood gets a makeover, it often means better roads, parks, and public services, making it more attractive to renters. Take Daejeon, for example, where the city has poured KRW 50 billion into urban renewal to make the area more walkable and connected. This kind of investment can really boost a neighborhood's appeal.
As these areas get spruced up, property values usually go up too. In Daegu, after similar upgrades, house prices jumped by over 7% in 2024. This bump in property value often leads to higher rents, as landlords look to make the most of their more valuable properties.
Modernized neighborhoods tend to pull in younger professionals who are ready to pay more for better living conditions and modern amenities. This shift in who wants to live there can mean higher rental yields because there's more demand for rentals. In Sejong, for instance, rents shot up in 2020, showing just how much people want to live in these updated areas.
So, if you're thinking about buying property, keep an eye on these older neighborhoods that are getting a new lease on life. They might just be the next big thing in real estate, offering both increased property values and rental income.
Sources: Invest Korea, Global Property Guide, CCN News
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.
15) Property prices in Dunsan-dong will rise steadily because of its central location and business district
The Dunsan-dong area in Daejeon is on the rise, thanks to its prime location and bustling business district.
Businesses are flocking to Dunsan-dong, creating a surge in demand for office space. This influx is pushing property prices up, as companies are drawn to the area's strategic advantages. It's a trend that's been building over the past few years, with more and more corporations setting up shop here.
The government is also playing a big role by investing in infrastructure projects. These efforts are making Dunsan-dong more connected and improving public amenities, which naturally boosts its appeal. As the area becomes more accessible and offers better facilities, property values are climbing. Plus, Daejeon's population is growing, especially in the metro area, which means more people are looking for homes and commercial spaces.
Looking at other urban centers in South Korea, there's a clear pattern: central business districts like Dunsan-dong consistently see property price increases. This trend is expected to continue, especially with ongoing urban development plans that focus on making the area more livable and attractive. These plans often include new infrastructure and public amenities, further enhancing Dunsan-dong's appeal.
With all these factors in play, it's no wonder that Dunsan-dong is becoming a hot spot for property investment. The combination of business growth, government investment, and population increase is creating a perfect storm for rising property prices. If you're considering buying property in the area, now might be the time to act.
As Dunsan-dong continues to develop, it's set to become an even more desirable location. The ongoing improvements and strategic advantages make it a prime candidate for steady property price growth. Keep an eye on this area if you're looking for a promising investment opportunity.
Sources: Global Property Guide, Macrotrends
16) Mixed-use developments will rise in Daejeon, affecting residential property values due to new zoning rules
New zoning regulations in Daejeon are set to encourage mixed-use developments, which could impact residential property values.
These mixed-use areas are becoming popular because they create lively neighborhoods where you can walk to everything you need. Imagine living in a place where restaurants, shops, and parks are just around the corner. This convenience is a big draw for many people, making these areas highly desirable.
When a neighborhood becomes more attractive, more people want to live there, which can drive up property values. In Daejeon, the new zoning rules are expected to do just that. Properties near these developments might see a rise in value as more people flock to these vibrant communities.
Looking at other cities, we see a similar pattern. When zoning changes lead to mixed-use developments, property values often increase. Take the Hillstate Gayang The Wise project in Daejeon, for example. It's expected to boost property values because of its easy access to public transport and shopping.
These developments don't just attract residents; they also bring in businesses and visitors. This mix of people and activities can transform a neighborhood, making it a bustling hub. The demand for housing in such areas tends to grow, further pushing up property values.
So, if you're considering buying property in Daejeon, keep an eye on these mixed-use developments. They could be a game-changer for the area's real estate market, offering both convenience and potential value growth.
Sources: Doclime, Korea Times, Twenty40Co
17) Daejeon will implement stricter rent controls to keep housing affordable
Housing prices in Daejeon have surged, with a 12.18% increase in November 2020.
As more people flock to Daejeon, the city has seen a jump in housing transactions, from 26,000 in 2022 to 32,000 in 2023. This rise highlights the growing demand for affordable homes.
Government reports are sounding the alarm on housing affordability, suggesting changes like lowering the loan-to-value ratio in speculative areas. This indicates a push towards stricter rent control policies.
Seoul's success with rent control offers a blueprint for Daejeon. These measures have helped keep housing costs in check, showing that effective policies can maintain affordability.
With Daejeon's housing market heating up, the city might look to these examples to ensure residents aren't priced out. The need for affordable housing solutions is becoming more urgent.
Sources: Global Property Guide, Statista
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18) Property prices in the city will stabilize as the government curbs speculative buying
Daejeon's housing market is showing signs of stabilization with transactions jumping from 26,000 in 2022 to about 32,000 in 2023.
Thanks to the Financial Service Commission's (FSC) strategic measures, the city is seeing fewer unsold houses. By tweaking the loan-to-value (LTV) ratio, the FSC is effectively keeping speculative buying in check, which in turn helps stabilize property prices.
In the past, cities like Seoul have benefited from similar government interventions. These included tax breaks and supply control measures, which played a crucial role in managing house price increases and stabilizing the market over time.
For potential buyers, this means a more predictable market environment. The government's actions are not just about controlling prices but also about ensuring that the market remains accessible and fair for everyone.
Insider knowledge suggests that these policies are part of a broader strategy to make housing more affordable. By reducing speculative buying, the government aims to create a more balanced market where prices reflect actual demand.
So, if you're considering buying property in Daejeon, now might be a good time. With government policies actively working to stabilize the market, you can expect a more stable investment environment.
Sources: Statista, Global Property Guide
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.