How much for a property in Busan now?

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Yes, the analysis of Busan's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Busan. If you'd like to learn more about us, you can check our presentation page.

What property types should you target in Busan and what sizes make sense?

Studios and officetels dominate the entry-level market in Busan, typically ranging from 25-45 m² and appealing to young professionals, students, and short-term rental investors.

One to three-bedroom condos represent the most liquid segment of the Busan property market. These units range from 40 m² for compact 1BR layouts to over 120 m² for spacious 3BR family apartments. The 60-90 m² range offers the best balance of affordability and rental demand.

Villas and low-rise houses target families and long-term investors, with sizes typically spanning 70-300 m² or more. These properties offer more space and privacy but require higher maintenance costs and longer holding periods for appreciation.

Land purchases remain limited to city periphery areas like Gijang-gun, where development potential exists but requires significant capital and local market knowledge.

As of September 2025, the most active transaction segments are 1-2BR condos in the 40-90 m² range, which offer the best liquidity for both owner-occupiers and investors.

Which neighborhoods fit your lifestyle or investment strategy?

Haeundae stands as Busan's premium district, commanding the highest prices due to beachfront access, international schools, and luxury amenities.

Centum City appeals to business professionals and luxury seekers, featuring high-end shopping, financial services, and modern high-rise developments. Marine City offers similar prestige with waterfront living and contemporary architecture.

Seomyeon serves as Busan's central business and entertainment hub, providing excellent transport connectivity, nightlife, and reasonable property prices. This area works well for young professionals prioritizing convenience over luxury.

University zones near Kyungsung University and Pukyong National University offer steady rental demand from students and faculty, making them attractive for buy-to-let investors seeking reliable income streams.

It's something we develop in our South Korea property pack.

Which areas are most expensive, emerging, and budget-friendly right now?

What should your all-in budget include for closing costs?

Transfer taxes in Busan range from 1-4% of the purchase price, scaling based on property value and your holding period if selling an existing property.

Acquisition and registration fees typically add another 1.5% to your total costs, covering government documentation and legal processing requirements.

Agent commissions range from 0.4-1% and are often negotiable, particularly for higher-value transactions or repeat clients. Legal and notary fees add approximately 1-1.5% for document preparation and closing procedures.

Your total closing costs will typically range from 3-7% above the agreed purchase price. For a KRW 500M property, budget an additional KRW 15-35M for all transaction-related expenses.

Foreign buyers may face additional documentation requirements and potentially higher legal fees, so factor in an extra 0.5-1% for international transaction complexity.

What are actual purchase prices by neighborhood right now?

Haeundae 1BR condos (40-60m²) currently trade between KRW 600-900M, with oceanview units commanding premium pricing toward the upper range.

Seomyeon offers more affordable entry points, with similar 1BR units priced at KRW 350-550M and 3BR apartments (80-120m²) ranging from KRW 600-900M.

Centum City represents the luxury segment, where 1BR units exceed KRW 1B and 3BR condos range from KRW 1.2-2B depending on building quality and amenities.

Nampo-dong provides the best value proposition, with 1BR condos available from KRW 250-400M and 3BR units from KRW 500-800M, offering strong rental yields despite lower purchase prices.

Final transaction prices typically settle 2-8% below asking prices as of September 2025, reflecting current market softness and high inventory levels across most neighborhoods.

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Which areas offer the best quality of life for residents?

Haeundae delivers premium quality of life with beachfront access, international schools, low crime rates, and excellent healthcare facilities.

Marine City and Centum City provide modern high-rise living with superior building management, underground parking, gym facilities, and proximity to shopping centers.

University areas offer vibrant community atmospheres with diverse dining options, cultural activities, and easy access to educational facilities, making them ideal for families with children or young professionals.

Gijang County appeals to families seeking suburban tranquility, larger living spaces, and lower noise levels while maintaining reasonable commute times to central Busan.

Buildings constructed after 2010 generally offer better earthquake resistance, flood protection, and energy efficiency, making them safer long-term investments for owner-occupiers.

Where is short-term rental permitted and what returns are realistic?

Short-term rental regulations in Busan are strict, with only licensed primary residences permitted in most districts.

Approximately 5% of listings currently hold proper short-term rental licenses, creating a limited but potentially profitable market for compliant operators.

Annual occupancy caps and zoning restrictions vary by district, with some areas completely prohibiting short-term lettings, particularly around schools and residential-only zones.

Legal short-term rentals achieve 50-70% occupancy rates with nightly rates ranging from KRW 40,000-150,000 depending on property type, location, and amenities.

High-end buildings and school zones frequently prohibit short-term rentals through HOA rules, so verify building-specific regulations before purchasing for this purpose.

What rental yields and lease structures can you expect?

Gross rental yields in Busan typically range from 3-5%, but net yields often fall below 2% after accounting for vacancy periods, maintenance, and management costs.

The Korean rental market operates on two primary lease structures: jeonse (large deposit with minimal monthly rent) and wolse (monthly rent with smaller security deposit).

University areas and central locations like Seomyeon maintain lower vacancy rates due to consistent student and professional demand, while suburban areas face higher vacancy risks.

Jeonse deposits can range from 50-80% of property value, providing substantial upfront capital but limiting monthly cash flow for investors seeking regular income.

It's something we develop in our South Korea property pack.

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.

Where are the best opportunities for capital appreciation?

Dadaepo presents the strongest redevelopment catalyst with planned infrastructure improvements and beachfront development projects expected to complete by 2027-2028.

Centum City continues expanding as Busan's financial district, with new office towers and commercial developments supporting long-term property value growth.

Areas near major universities benefit from consistent demand and potential campus expansion projects, providing steady appreciation over 5-7 year holding periods.

North Port redevelopment zones offer significant upside potential but require longer investment horizons of 7-10 years for major infrastructure completion.

Target IRR expectations should remain modest at 5-10% annually, focusing on well-timed purchases in redevelopment areas rather than expecting dramatic appreciation across all segments.

What are realistic monthly carrying costs?

Mortgage rates for Korean residents currently range from 3-5% APR, while foreign buyers may face higher rates or require larger down payments.

Insurance costs typically run KRW 10,000-30,000 monthly depending on property value and coverage level.

HOA fees range from KRW 15,000-60,000 monthly based on building amenities, age, and management quality, with luxury buildings commanding higher fees.

Maintenance reserves should budget KRW 12,000-24,000 monthly for unexpected repairs and appliance replacement over time.

Property taxes range from 0.25-0.8% annually, while utilities for 1-3BR apartments typically cost KRW 40,000-70,000 monthly including heating, electricity, and water.

How have prices and rents changed recently?

Busan property prices declined 5% from 2024 to September 2025, with steeper drops in suburban areas compared to premium waterfront districts.

Compared to five years ago, prices remain relatively flat with modest appreciation in select neighborhoods offset by broader market stagnation.

Rental rates have remained stable despite falling purchase prices, actually improving gross yields marginally for new property investors.

The consensus forecast for 2026 suggests continued price stability with potential modest recovery in high-demand areas like Haeundae and redevelopment zones.

Long-term projections show limited appreciation potential over 10 years due to demographic challenges and oversupply issues, except in strategic infrastructure development areas.

How does Busan compare to peer cities?

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.

Sources

1. InvestAsian - Busan Property Investment
2. Teoalida - South Korea Property Data
3. BambooRoutes - South Korea Market Outlook
4. BambooRoutes - Busan Property Analysis
5. Busan Metropolitan City - Official Press Release
6. BambooRoutes - Busan Area Guide
7. Enko Living Guide - Busan
8. Airbtics - South Korea Airbnb Rules