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Daegu's real estate market in 2025 presents diverse investment opportunities with apartment prices averaging ₩6.7–₩9.9 million per m² citywide.
Property buyers can choose from apartments, villas, and officetels across various neighborhoods, with total purchase costs ranging from ₩570 million for budget options to over ₩1.2 billion for premium properties in Suseong-gu.
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Daegu property prices range from ₩6.7–₩9.9 million per m² with apartments dominating the market, offering entry points from ₩570 million for 85 m² units in outer districts to ₩841 million in premium Suseong-gu.
Investment yields remain modest at 0.8–1.6% for long-term rentals, while short-term rentals can generate ₩7–₩8.5 million net operating income annually, making Daegu an accessible alternative to Seoul's higher-priced market.
| Neighborhood | Price per m² (₩) | 85 m² Total Cost | Quality Rating |
|---|---|---|---|
| Suseong-gu | 9.9 million | ₩841 million + fees | Premium (best schools, hospitals) |
| Jung-gu (center) | 9.0 million | ₩765 million + fees | High (central, good transit) |
| Nam-gu | 8.3 million | ₩705 million + fees | High (professionals, parks) |
| Dong-gu | 7.5 million | ₩637 million + fees | Mid (improving infrastructure) |
| Dalseo-gu | 6.7 million | ₩570 million + fees | Budget (value district) |
| Dalseong-gun | 5.8 million | ₩493 million + fees | Budget (suburban, villas) |
What property types and sizes should you target in Daegu's current market?
Apartments dominate Daegu's real estate market with the strongest liquidity and broadest buyer appeal.
The most popular sizes for investors are 60 m², 85 m², and 120 m² units, with 85 m² representing the sweet spot for both rental demand and resale potential. New-build properties typically command a 5-10% premium over resale units, but renovation can close this value gap in emerging neighborhoods.
Officetels offer another viable option for investors seeking smaller entry points and higher rental yields, particularly in business districts. Villas remain less liquid but can provide value opportunities in suburban areas like Dalseong-gun.
For investors prioritizing liquidity and broad market appeal, modern apartments between 75-100 m² in established neighborhoods offer the most straightforward investment path.
Which Daegu neighborhoods offer the best combination of amenities and investment potential?
Suseong-gu stands as Daegu's premium district with the highest property values but also the best schools, hospitals, and established expat community.
Jung-gu provides central location benefits with excellent metro access and urban amenities at slightly lower prices than Suseong-gu. Nam-gu attracts professionals and families with solid school zones, good transit links, and quality parks, making it a balanced choice for both living and investment.
Dong-gu and Dalseo-gu represent value districts with improving infrastructure and mid-market pricing, offering the best potential for capital appreciation. Key location drivers include proximity to subway lines (Lines 1, 2, 3), major hospitals like Yeungnam and Keimyung, top-rated schools in Suseong, and main employment centers.
Transit access remains crucial, with properties within walking distance of subway stations commanding premium prices and better rental demand.
What are the current asking and closing prices per square meter by area?
As of September 2025, Daegu property prices vary significantly by neighborhood and property type.
| Neighborhood | Average Price per m² | Property Type | Market Status |
|---|---|---|---|
| Suseong-gu | ₩9.9 million | Premium apartments | Stable, high demand |
| Jung-gu (center) | ₩9.0 million | Central apartments | Steady, good liquidity |
| Nam-gu | ₩8.3 million | Family apartments | Growing, professional area |
| Dong-gu | ₩7.5 million | Mid-market units | Improving, value potential |
| Dalseo-gu | ₩6.7 million | Budget apartments | Emerging, infrastructure upgrades |
| Dalseong-gun | ₩5.8 million | Villas, suburban | Budget-friendly, landed options |
What's the total purchase price including all fees and taxes for different property sizes?
Total purchase costs in Daegu include the property price plus buyer fees typically running 3-5% of the transaction value.
For a 60 m² apartment, total costs range from ₩402 million in Dalseo-gu to ₩594 million in Suseong-gu, plus ₩15-25 million in fees and taxes. An 85 m² unit costs ₩570 million to ₩841 million plus ₩22-35 million in additional costs.
Premium 120 m² apartments range from ₩804 million in outer districts to ₩1.188 billion in Suseong-gu, with fees of ₩30-50 million depending on deal structure. These fees cover agent commissions, legal costs, stamp duty, registration fees, and VAT where applicable.
Purchase tax is banded by property value, with higher-value properties facing steeper rates, making precise budgeting essential for premium purchases.
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What are the monthly mortgage payments and total carrying costs?
Most Daegu property buyers secure mortgages at 50-60% loan-to-value ratios with current rates around 3.5-4% for 20-30 year terms.
For an ₩800 million property with a 50% LTV mortgage (₩400 million loan) at 4% over 20 years, monthly payments are approximately ₩2.42 million. Additional monthly costs include HOA and maintenance fees of ₩100,000-₩240,000, insurance premiums of ₩40,000-₩60,000, and monthly property tax provisions.
Annual property taxes typically run 0.15-0.35% of property value, translating to ₩900,000-₩3 million yearly for properties valued between ₩700 million and ₩1 billion. Total monthly carrying costs for an 85 m² apartment with mortgage typically range from ₩2.6-₩2.8 million.
These calculations assume standard financing terms and average utility costs for modern apartment buildings with central heating and management services.
Which areas deliver the best quality of life for residents?
Suseong-gu offers the highest quality of life with top-tier schools, leading hospitals, cultural amenities, and the most developed expatriate community.
The area features premium shopping districts, quality restaurants, and easy access to recreational facilities including parks and sports complexes. Jung-gu provides urban convenience with shorter commutes to business districts and comprehensive public transportation access.
Nam-gu strikes an excellent balance between amenities and affordability, offering good schools, healthcare access, and family-friendly environments without premium district pricing. The area also provides better value for larger apartments suitable for families.
For residents prioritizing lifestyle over investment returns, Suseong-gu and Nam-gu consistently deliver the best combination of convenience, safety, and community infrastructure. It's something we develop in our South Korea property pack.
What returns can you expect from short-term rental operations?
Short-term rental in Daegu generates average nightly rates of ₩64,700 (approximately US$47) with typical occupancy rates around 56% or 204 nights per year.
Annual gross revenue for a well-managed 85 m² apartment reaches approximately ₩13 million, with about 16% of guests being foreign visitors. Management and cleaning costs typically run ₩3-5 million annually, depending on service level and property condition.
Net operating income after all expenses ranges from ₩7-8.5 million yearly for properly managed units in good locations. Regulatory requirements include registration with local authorities, but restrictions remain relatively lenient compared to Seoul's stricter short-term rental regulations.
Success factors include proximity to tourist attractions, business districts, and transportation hubs, with properties near Dongseongno or major hotels performing best.
What long-term rental yields and costs should you budget for?
Daegu's long-term rental market delivers gross yields of 1.0-1.6% annually for apartment properties, with net yields typically 0.8-1.3% after all expenses.
| Property Type | Gross Yield | Typical Vacancy | Net Yield |
|---|---|---|---|
| Premium apartments (Suseong-gu) | 1.0-1.2% | 2-3 weeks/year | 0.8-1.0% |
| Mid-market apartments | 1.2-1.4% | 3-4 weeks/year | 1.0-1.2% |
| Budget apartments | 1.4-1.6% | 4-6 weeks/year | 1.1-1.3% |
| Officetels | 1.6-2.0% | 3-5 weeks/year | 1.3-1.7% |
Tenant turnover costs including cleaning, minor repairs, and agent fees typically run ₩500,000-₩1 million per transition. Professional property management services charge 5-8% of rental income for full-service management.
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.
Which property segments offer the best buy-to-resell opportunities?
Modern mid-market apartments between 75-100 m² in Suseong-gu and Nam-gu show the strongest buyer demand with fastest absorption rates.
New-build units under ₩1 billion typically sell within 21-60 days in active market conditions, while older properties in Dong-gu can see significant value uplift through strategic renovation. Quality refurbishment of 20-year-old units can add 7-12% to resale values when design upgrades meet current buyer preferences.
The most prudent holding period for buy-to-resell strategies is 2-3 years, allowing time to execute improvements and benefit from market cycles without excessive carrying costs. Liquidity considerations favor established neighborhoods over emerging areas for shorter holding periods.
Properties requiring extensive renovation should only be targeted by experienced investors with reliable contractor networks and realistic budgets for permit processes and quality control.
Can you show examples of recent purchases across different price points?
Recent transaction examples demonstrate the range of opportunities across Daegu's market segments.
Budget purchase: Dong-gu resale apartment, ₩6.7 million per m², 85 m² unit for ₩570 million total purchase price plus approximately ₩22 million in fees and taxes, bringing total investment to ₩592 million.
Mid-market purchase: Dalseo-gu new-build apartment, ₩7.5 million per m², 85 m² unit for ₩637.5 million plus ₩25 million in fees and taxes, totaling ₩662.5 million investment with modern amenities and warranty coverage.
Premium purchase: Suseong-gu luxury apartment, ₩10.2 million per m², 120 m² unit for ₩1.224 billion plus ₩45 million in fees and taxes, reaching ₩1.269 billion total for prime location with top-tier amenities and school access.
These examples reflect typical market conditions as of September 2025, with fee structures varying based on financing arrangements and property registration requirements.
How do neighborhoods rank by price, growth potential, and value opportunities?
Daegu's neighborhood hierarchy reflects a clear premium-to-budget spectrum with distinct investment characteristics.
Most expensive areas: Suseong-gu, particularly Beomeo-dong, and downtown Jung-gu penthouses command the highest prices but offer stability and prestige. Up-and-coming districts: Dalseo-gu and Dong-gu benefit from ongoing infrastructure improvements and narrowing price gaps to central areas, presenting the best appreciation potential.
Budget-friendly options: Dalseong-gun and outlying Dong-gu areas offer prices 20-30% below city averages, suitable for first-time buyers and value investors. Smartest buys by budget: Budget buyers should focus on Dalseo-gu for growth potential, mid-market buyers on Nam-gu for balance, and premium buyers on Suseong-gu for stability.
Each neighborhood's investment merit depends on individual goals, with emerging areas favoring capital appreciation and established areas providing stability and rental income reliability. It's something we develop in our South Korea property pack.
What are the price trends and forecasts for Daegu real estate?
Daegu property prices have shown mixed performance over recent time periods with clear cyclical patterns.
Five-year trend: Total growth of 27% from 2019-2025, with average prices rising from ₩5-6 million per m² to current levels of ₩6.7-9.9 million per m², despite temporary corrections. One-year performance: Flat to slightly negative performance of 0% to -3.9% depending on segment, reflecting market correction after strong 2022-23 gains.
Forecast outlook: Base-case scenario projects modest growth of 2-3% annually through 2030, supported by steady economic fundamentals but limited by demographic trends. Regional comparisons: Daegu remains significantly cheaper than Seoul (₩15-25 million per m²) and Busan (₩9-12 million per m²), while trading slightly above Gwangju and Daejeon.
Yield advantages compensate for lower appreciation potential, with Daegu offering higher gross rental yields than Seoul or Busan markets. Long-term growth depends on continued economic development and infrastructure investment in the greater Daegu metropolitan area. It's something we develop in our South Korea property pack.
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.
Daegu's 2025 property market offers accessible entry points across all segments, with clear neighborhood hierarchies and transparent transaction costs making it an attractive alternative to Seoul's premium pricing.
While yields remain modest by global standards at 0.8-1.6% net returns, the combination of affordable entry costs, stable rental demand, and potential for selective capital appreciation in emerging districts creates viable investment opportunities for both domestic and international buyers.
Sources
- Daegu Property Market Overview
- Daegu Price Forecasts and Analysis
- Average Apartment Prices South Korea
- House Closing Costs Guide
- Who Pays Closing Costs
- Financial Services Commission Korea
- Daegu Cost of Living
- Daegu Airbnb Revenue Analysis
- South Korea Housing Market Forecast
- South Korea Property Price History
-Complete Guide to Daegu Property Buying Process
-Daegu Property Investment Guide for Foreigners
-How to Successfully Invest in Daegu Real Estate
-Should You Buy Property in Daegu? Investment Analysis
-Daegu Property Market Forecast and Trends