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Daejeon is South Korea's fifth-largest city, home to the famous Daedeok Innopolis research cluster and a steady stream of renters who work in tech, science, and education.
This guide breaks down what rental yields actually look like in Daejeon in 2026, which neighborhoods deliver the best returns, and what costs will eat into your profits.
We constantly update this blog post to reflect the latest market data and trends.
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 Daejeon.
Insights
- Daejeon's average gross rental yield sits around 4.6% in early 2026, which is slightly higher than Seoul's compressed yields but lower than some secondary Korean cities.
- The gap between gross and net yields in Daejeon is roughly 1.4 percentage points, meaning a 4.6% gross yield typically becomes around 3.2% net after taxes, vacancy, and maintenance.
- Officetels and small studios in Daejeon deliver the highest yields at 5.2% to 7.2% gross, while newer apartments in prime districts often fall below 4%.
- Dunsan-dong and Yuseong-gu's premium neighborhoods have the lowest yields because purchase prices are high relative to rents, as many buyers want to own there rather than rent.
- Eunhaeng-dong in Jung-gu's old downtown and Sintanjin-dong in Daedeok-gu offer the highest yields because entry prices are low but renter demand from workers and budget tenants stays steady.
- Daejeon's vacancy rate runs between 3% and 5% citywide, but drops to 1% to 3% near KAIST and the Daedeok research cluster where tech workers need housing.
- Korea's shift from jeonse (lump-sum deposits) toward monthly rent contracts is expanding the renter pool in Daejeon, which supports landlords who prefer regular cash flow.
- The upcoming Daejeon Urban Railway Line 2 tram project could boost rents by 5% to 15% in neighborhoods along the planned route once stations are confirmed.
What are the rental yields in Daejeon as of 2026?
What's the average gross rental yield in Daejeon as of 2026?
As of early 2026, the average gross rental yield in Daejeon across all residential property types is approximately 4.6%.
The realistic range for most typical properties in Daejeon runs from about 3.6% at the low end to around 6.2% at the high end, depending on where you buy and what type of property you choose.
Compared to Seoul, where yields often compress below 3% in popular districts, Daejeon offers somewhat better returns, though it still trails some smaller Korean cities where prices haven't risen as fast.
The single biggest factor influencing gross yields in Daejeon right now is the ongoing shift from jeonse deposits to monthly rent contracts, which is gradually increasing the pool of monthly-paying tenants and changing how landlords think about cash flow.
What's the average net rental yield in Daejeon as of 2026?
As of early 2026, the average net rental yield in Daejeon is approximately 3.2% after accounting for all recurring ownership costs.
The typical difference between gross and net yields in Daejeon is about 1.4 percentage points, which means roughly 30% of your gross income goes toward expenses rather than profit.
The expense category that eats most heavily into gross yields in Daejeon is the combination of vacancy gaps and tenant turnover costs, especially for smaller units like officetels where renters move more frequently.
Net yields across standard investment properties in Daejeon typically range from about 2.2% to 4.6%, with the lower end representing newer apartments in expensive districts and the higher end covering well-located studios with efficient management.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Daejeon.
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 Daejeon in 2026?
In Daejeon in early 2026, local investors generally consider a gross rental yield of 5.0% or higher to be "good" because it provides enough cushion for vacancy and unexpected repairs.
The threshold that separates average-performing properties from high-performing ones in Daejeon is around 5.5% gross, and anything above 6% is considered excellent for the current market.
How much do yields vary by neighborhood in Daejeon as of 2026?
As of early 2026, the spread in gross rental yields between Daejeon's highest-yield and lowest-yield neighborhoods is roughly 3.5 percentage points, ranging from about 3.3% to 6.8%.
The neighborhoods that typically deliver the highest rental yields in Daejeon are older, more affordable areas with steady renter demand, like Eunhaeng-dong and Jungangno in Jung-gu, Panam-dong in Dong-gu, and Sintanjin-dong in Daedeok-gu.
The neighborhoods with the lowest yields are the premium districts where many people prefer to own rather than rent, including Dunsan-dong, Wolpyeong-dong, and Doan-dong in Seo-gu, as well as Bongmyeong-dong, Doryong-dong, and Gwanpyeong-dong in Yuseong-gu.
The main reason yields vary so much across Daejeon neighborhoods is that purchase prices in desirable owner-occupier areas have risen faster than rents, compressing yields, while affordable areas maintain higher yields because entry costs stay low even as rents remain stable.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Daejeon.
How much do yields vary by property type in Daejeon as of 2026?
As of early 2026, gross rental yields in Daejeon range from about 3.3% for newer apartments in prime locations to around 7.2% for well-located officetels and small studios.
The property type delivering the highest average gross yield in Daejeon is officetels and small studios, which typically generate between 5.2% and 7.2% because their low purchase prices relative to rent make the math work better for investors.
The property type with the lowest average gross yield in Daejeon is newer apartments in prime complexes, which often yield only 3.3% to 4.8% because buyers pay a premium to own in these buildings.
The key reason yields differ between property types in Daejeon is that smaller units rent more efficiently per square meter and have lower ticket prices, while larger apartments carry an "ownership premium" that pushes prices up without proportionally higher rents.
By the way, you might want to read the following:
What's the typical vacancy rate in Daejeon as of 2026?
As of early 2026, the typical residential vacancy rate in Daejeon is between 3% and 5% citywide, which represents normal turnover between tenants rather than chronic oversupply.
Vacancy rates across Daejeon neighborhoods range from as low as 1% to 3% in high-demand renter nodes near KAIST and Daedeok Innopolis, up to 5% to 8% in older or less convenient buildings where many similar units compete for tenants.
The main factor driving vacancy rates in Daejeon is proximity to employment centers and transit, with areas near the research cluster and major stations filling units much faster than peripheral locations.
Compared to national averages, Daejeon's vacancy rate is relatively healthy because the city has a stable base of tech workers, researchers, and university students who need rental housing year-round.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Daejeon.
What's the rent-to-price ratio in Daejeon as of 2026?
As of early 2026, the average annual rent-to-price ratio in Daejeon is approximately 4.6%, which means if you buy a property for 100 million won, you can expect around 4.6 million won in annual rent.
For buy-to-let investors in Daejeon, a rent-to-price ratio above 5% annually is generally considered favorable, and this ratio is essentially the same thing as gross rental yield since both measure annual rent as a percentage of purchase price.
Compared to Seoul, where rent-to-price ratios often fall below 3% in popular districts, Daejeon offers notably better ratios, though it doesn't quite match the higher ratios found in some smaller Korean cities with lower property prices.
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 Daejeon give the best yields as of 2026?
Where are the highest-yield areas in Daejeon as of 2026?
As of early 2026, the top three highest-yield areas in Daejeon are Eunhaeng-dong and the Jungangno area in Jung-gu's old downtown, Panam-dong in Dong-gu, and Sintanjin-dong in Daedeok-gu.
In these top-performing areas like Eunhaeng-dong, Panam-dong, and Sintanjin-dong, investors can typically achieve gross rental yields in the range of 5.5% to 6.8%, which is well above the citywide average.
What these high-yield areas in Daejeon share is a combination of lower purchase prices due to older building stock and consistent renter demand from workers, students, and budget-conscious households who prioritize affordability over prestige.
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 Daejeon.
Where are the lowest-yield areas in Daejeon as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Daejeon are Dunsan-dong and Wolpyeong-dong in Seo-gu, and Bongmyeong-dong in Yuseong-gu, all of which are considered premium residential districts.
In these low-yield areas like Dunsan-dong, Wolpyeong-dong, and Bongmyeong-dong, gross rental yields typically fall between 3.3% and 4.2%, which is below the citywide average.
The main reason yields are compressed in these Daejeon neighborhoods is that many people want to own property there for lifestyle or prestige reasons, which drives purchase prices up faster than rents can follow.
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 Daejeon.
Which areas have the lowest vacancy in Daejeon as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Daejeon are Gwanpyeong-dong and Doryong-dong in Yuseong-gu near Daedeok Innopolis, and Dunsan-dong in Seo-gu's central business district.
In these low-vacancy areas like Gwanpyeong-dong, Doryong-dong, and Dunsan-dong, vacancy rates typically stay between 1% and 3%, meaning units rarely sit empty for more than a few weeks between tenants.
The main demand driver keeping vacancy low in these Daejeon neighborhoods is the concentration of stable employment from the research cluster, tech companies, and government offices, which creates a steady stream of renters who need housing year-round.
The trade-off investors face when targeting these low-vacancy areas is that purchase prices are higher, so while you'll rarely have an empty unit, your yield will be lower than in more affordable neighborhoods.
Which areas have the most renter demand in Daejeon right now?
The top three neighborhoods currently experiencing the strongest renter demand in Daejeon are Gung-dong, Bongmyeong-dong, and Doryong-dong in Yuseong-gu, all located near KAIST and the Daedeok research cluster.
The renter profile driving most demand in these areas is young professionals and researchers working in technology and science fields, along with graduate students who need convenient housing close to their workplaces and universities.
In these high-demand Daejeon neighborhoods like Gung-dong and Bongmyeong-dong, rental listings typically get filled within one to two weeks of being posted, especially for well-priced studios and one-bedroom units.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Daejeon.
Which upcoming projects could boost rents and rental yields in Daejeon as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Daejeon are the Daejeon Urban Railway Line 2 tram system, the Daejeon Station area redevelopment, and mixed-use development zones around the old downtown.
The neighborhoods most likely to benefit from these projects include Jung-gu and Dong-gu around Daejeon Station, as well as areas along the planned Line 2 tram corridor once station locations are finalized.
Once these projects are completed, investors in affected neighborhoods might realistically expect rent increases of 5% to 15% over several years, though the exact timing depends on construction progress and how quickly new transit improves daily convenience for renters.
You'll find our latest property market analysis about Daejeon here.
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What property type should I buy for renting in Daejeon as of 2026?
Between studios and larger units in Daejeon, which performs best in 2026?
As of early 2026, studios and small one-bedroom units outperform larger units in terms of rental yield in Daejeon, though larger apartments tend to have more stable, longer-term tenants.
Studios in Daejeon typically generate gross yields of 5.2% to 7.2% (roughly 52 to 72 million won annual rent on a 1 billion won property, or about $36,000 to $50,000 USD, or €33,000 to €45,000 EUR), while larger two or three bedroom units usually yield 3.5% to 4.8%.
The main factor explaining why studios outperform larger units in Daejeon is that rent per square meter is higher for small spaces, and the lower purchase price means your investment dollars work harder even though absolute rent amounts are lower.
One scenario where larger units might be the better investment in Daejeon is if you're targeting family renters near good schools in Yuseong-gu, where turnover is lower and you can avoid the frequent vacancy gaps that come with student and young professional tenants.
What property types are in most demand in Daejeon as of 2026?
As of early 2026, the most in-demand property type in Daejeon is small units like studios and one-bedroom apartments located near universities, the research cluster, and transit hubs.
The top three property types ranked by current tenant demand in Daejeon are officetels and studios near employment centers, mid-size apartments in convenient neighborhoods for families, and older but affordable villas for budget-conscious renters.
The primary trend driving this demand pattern in Daejeon is Korea's continuing shift from jeonse deposits toward monthly rent contracts, which is expanding the pool of renters who need affordable monthly housing rather than large upfront deposits.
One property type currently underperforming in demand in Daejeon is large detached houses in peripheral areas, which struggle to find tenants because most renters prefer the convenience and lower costs of apartment living closer to the city center.
What unit size has the best yield per m² in Daejeon as of 2026?
As of early 2026, the unit size range delivering the best gross rental yield per square meter in Daejeon is compact studios and small one-bedrooms between 20 and 40 square meters.
For this optimal unit size in Daejeon, typical gross rental yield per square meter works out to roughly 5.5% to 7% annually (around 55,000 to 70,000 won per square meter in annual rent relative to price, or about $38 to $48 USD, or €35 to €44 EUR per square meter).
The main reason both smaller and larger units tend to have lower yield per square meter in Daejeon is that very small units can be hard to rent due to livability concerns, while larger units have lower rent-per-square-meter rates because tenants won't pay proportionally more just for extra space.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Daejeon.
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 Daejeon as of 2026?
What are typical property taxes and recurring local fees in Daejeon as of 2026?
As of early 2026, the annual property tax for a typical rental apartment in Daejeon runs between 0.1% and 0.3% of the property's assessed value, which for a 300 million won apartment means roughly 300,000 to 900,000 won per year (about $200 to $620 USD, or €190 to €580 EUR).
Beyond property tax, landlords in Daejeon should budget for education tax add-ons that come bundled with property tax, and potentially building maintenance reserve contributions if buying in a managed apartment complex, which together can add another 100,000 to 300,000 won annually (about $70 to $210 USD, or €65 to €190 EUR).
In total, taxes and recurring fees in Daejeon typically represent about 3% to 6% of gross rental income for most standard rental properties, which is a smaller bite than in some Western countries but still meaningful for your net yield calculations.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Daejeon.
What insurance, maintenance, and annual repair costs should landlords budget in Daejeon right now?
Annual landlord insurance for a typical rental property in Daejeon costs between 100,000 and 300,000 won per year (about $70 to $210 USD, or €65 to €190 EUR), depending on coverage level and building type.
For maintenance and repairs, landlords in Daejeon should budget roughly 0.5% to 1.0% of the property value annually, which for a 300 million won apartment means setting aside 1.5 to 3 million won per year (about $1,000 to $2,100 USD, or €970 to €1,900 EUR).
The repair expense that most commonly catches Daejeon landlords off guard is boiler and heating system repairs during winter, since Korea's ondol floor heating systems can require significant maintenance as buildings age.
All together, landlords in Daejeon should realistically budget 1.7 to 3.5 million won annually (about $1,170 to $2,400 USD, or €1,100 to €2,250 EUR) for the combined cost of insurance, maintenance, and repairs to avoid unpleasant surprises.
Which utilities do landlords typically pay, and what do they cost in Daejeon right now?
In Daejeon, tenants typically pay all day-to-day utilities including electricity, gas, and water, while landlords only cover utilities during vacancy periods and any owner-responsibility building charges not passed through to tenants.
When a landlord does need to cover utilities during vacancy in Daejeon, monthly costs for a small rental unit typically run 80,000 to 220,000 won (about $55 to $150 USD, or €50 to €140 EUR), with significant seasonal variation since heating costs spike in winter.
What does full-service property management cost, including leasing, in Daejeon as of 2026?
As of early 2026, full-service property management in Daejeon typically costs between 3% and 6% of collected monthly rent, which for a unit renting at 500,000 won per month means 15,000 to 30,000 won monthly (about $10 to $21 USD, or €10 to €19 EUR).
On top of ongoing management, the typical leasing or tenant-placement fee in Daejeon is about half to one full month of rent, which for that same 500,000 won unit means 250,000 to 500,000 won (about $170 to $345 USD, or €160 to €320 EUR) each time you need a new tenant.
What's a realistic vacancy buffer in Daejeon as of 2026?
As of early 2026, landlords in Daejeon should set aside approximately 8% of annual rental income as a vacancy buffer, which is roughly equivalent to one month of rent per year.
In practice, most Daejeon landlords experience about two to four weeks of vacancy per year between tenants, though owners of small studios in competitive areas should plan for up to six weeks since turnover is higher with young, mobile renters.
Buying real estate in Daejeon 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 Daejeon, 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) | It's Korea's official public market monitor under the housing ministry, the standard reference for real estate statistics. | We used it as the backbone for rent and price trend logic. We treat REB as the neutral baseline when private reports disagree. |
| Korea Open Data Portal (REB API) | It's the government's open-data catalog describing what REB publishes in machine-readable form. | We used it to confirm what variables exist and justify our triangulation approach. We referenced it to prove dataset provenance and structure. |
| MOLIT Actual Transaction Price System | It's the Korean government's official portal for reported real estate transaction prices. | We used it to ground prices in real transactions rather than asking prices. We lean on it most when estimating purchase price denominators for yield calculations. |
| Data.go.kr MOLIT Dataset | It's the government dataset registry describing MOLIT transaction files and update schedules. | We used it to validate that transaction data comes from the official disclosure system. We justified using transactions as the price leg of rent-to-price ratios. |
| KOSIS (Statistics Korea) | It's Korea's official national statistics portal with authoritative housing data. | We used it for macro and housing context and to sanity-check household baselines. We referenced it for any rate or census-style structural numbers. |
| Population & Housing Census | It's the official census program and the cleanest source for housing stock structure over time. | We used it to frame what housing types are common and how Korea defines housing categories. We referenced it for vacancy and stock context. |
| HOUSTAT (Korea Housing Finance Corp) | It's a public-sector housing finance statistics portal with transparent documentation on inputs. | We used it to cross-check price levels and interest-rate context affecting what yield is good. We referenced its documentation to explain how housing price inputs are sourced. |
| KB Real Estate Data Hub | It's one of Korea's most-used housing market index platforms, widely cited in research and media. | We used it as a second price and rent trend lens to validate direction and relative tightness. We referenced it especially for neighborhood-level patterns. |
| KB Research Institute | It's a major bank research desk publishing regular housing market reviews with cited indicators. | We used it to support the jeonse-to-monthly-rent structural shift narrative. We justified why rent dynamics were active going into 2026. |
| Savills Korea Residential Outlook | Savills is a top-tier global real estate consultancy with transparent research reporting norms. | We used it to validate structural trends like rental market institutionalization and jeonse-to-wolse shift. We kept it as a professional triangulation layer rather than the only data source. |
| CBRE Korea 2026 Outlook | CBRE is a leading global research house widely referenced by investors for Korean market data. | We used it for macro and market regime context that influences what yield is good. We kept it as a supporting lens rather than the numeric backbone. |
| InvestKOREA Brokerage Commissions | It's an official investment agency page summarizing brokerage commission rates and legal changes. | We used it to ground transaction and leasing friction costs that affect net yield. We avoided random forum numbers for broker fees by relying on this official source. |
| KEPCO (Korea Electric Power) | It's the state-run electricity utility and the authority on electricity pricing mechanisms in Korea. | We used it as the institutional reference for utility cost discussion. We kept monthly estimates conservative because tariffs can change. |
| Daejeon Metropolitan Waterworks Authority | It's the city's official water authority and local utility administrator for Daejeon specifically. | We used it as the local reference point for water service and billing context. We paired it with Ministry of Environment reporting on unit rates. |
| Korea Herald (Jeonse/Wolse Explainer) | It's a major national newspaper that explicitly explains the legally defined conversion-rate concept. | We used it to explain Korea's rental mechanics in accessible language. We kept it as conceptual support rather than a numeric source. |
| Local Government Property Tax Guidance | It's official local-government documentation explaining property tax structures and when they're levied. | We used it to understand what taxes exist and when they apply. We applied conservative effective-rate ranges rather than one flat national rate. |
| Chosun Biz (Management Fees) | It's a reputable Korean business publication reporting on apartment management cost trends. | We used it to ground maintenance and management budgets in real market data. We avoided Seoul-only luxury assumptions by applying Daejeon-specific adjustments. |
| Asia Economy (Budget Reporting) | It's a credible news source covering official government budget allocations and infrastructure projects. | We used it to identify upcoming projects that could boost rents in Daejeon. We connected infrastructure investments to rent via improved access and amenities. |
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