Buying a property in Jeju Island: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

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

Considering buying real estate in Jeju Island? You're not alone!

Many people are fascinated by Jeju Island's natural wonders and dream of owning a beachfront property or a modern villa there.

Does it make sense from a financial perspective, though? Are property prices increasing on Jeju Island? What is the price per sqm? Is it wiser to invest in Jeju City or Seogwipo? Is there any hidden tax? Where can you get a yield above 7%?

We have all the answers you need.

The BambooRoutes team has extensively researched this market. Actually, we have condensed all our findings in a pack. Get it now.

In this article, we'll provide you with helpful information.

How is the property market on Jeju Island?

Are property prices booming or faltering? Instead of relying on opinions, we turn to hard data and stats for clarity

Property types

In Jeju Island, you can find various types of properties for sale.

These include cozy apartments with scenic views, charming single-family houses surrounded by nature, modern condos with convenient amenities, spacious villas offering luxury living, and even plots of land where you can build your dream home.

Whether you're looking for a tranquil getaway or a permanent residence, Jeju Island offers a range of property options to suit different preferences and lifestyles.

What's better: buy or rent?

(If you're keeping it for yourself and not renting it)

Whether you've already made Jeju Island your home or are contemplating it for the future, you might be wondering about the advantages of buying a property versus renting in this South Korean gem.

Usually, buying is better than renting in Jeju Island due to its increasing popularity as a tourist destination and its potential for capital appreciation.

However, should flexibility be your priority, renting is the best option.

Property pricing on Jeju Island

On average, according to the last data from Kookmin bank, South Korea, purchasing a property on Jeju Island would cost you around $6,500 per square meter.

Obviously, there are big differences. The value of a square meter for a beachfront property on Jeju Island might differ from a condo in Seogwipo. You'll get a more detailed in our pack for buying property on Jeju Island and in South Korea.

To give you a sense of scale, it means that, instead of purchasing a flat in Manhattan, you can obtain 2 properties on Jeju Island.

Also, housing prices on Jeju Island are 43% cheaper than in Seoul.

The most expensive places on Jeju Island are probably Seogwipo City and Jungmun-dong, while the cheapest places are likely Namwon and Jocheon.

Trends

First and foremost, we have to acknowledge that South Korea currently stands out for its remarkable stability. The last Fragile State Index that has been reported for this place is 32.7.

This is important to remember when wondering if it's a good investment to buy a property on Jeju Island.

Also, according to the International Monetary Fund (IMF), South Korea's economy is expected to soar by 9.9% in the coming 5 years, resulting in an average GDP growth rate of 2%.

If you want to invest in real estate on Jeju Island it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.

Also, in South Korea, the average GDP per capita has changed by 8.3% over the last 5 years. It's a good performance.

This data is a positive signal - housing prices on Jeju Island might soar in 2024 and after that.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in South Korea right now.

Buying property on Jeju Island

Yes, it can be difficult to buy property on Jeju Island due to the lack of reliable and updated information available. That's why we have created the pack to buy property on Jeju Island and in South Korea.

Buying process

In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.

Now, we're giving you a simplified version of the buying process.

This is the step-by-step process to purchase a property in Jeju Island:

1. Research property market and Jeju-specific regulations (e.g., Jeju Island Free International City Development Act).
2. Engage a licensed real estate agent specialized in Jeju properties.
3. Check eligibility to buy as a foreigner under the Jeju Foreigner Residence Act.
4. Secure financing options with a Jeju-based bank or lender.
5. Select a property and negotiate the price, considering Jeju's unique zoning laws.
6. Conduct due diligence, including verifying the property's compliance with Jeju development plans.
7. Sign a pre-contract agreement (Buyer's agreement) with all relevant details.
8. Transfer a deposit (usually 10% of the property price) to the seller's designated account.
9. Apply for an Alien Land Ownership Certificate (ALOC) at the Jeju Provincial Office.
10. Pay the remaining balance and taxes, including acquisition tax and registration fees.
11. Register the property in your name at the local land office on Jeju Island.
12. Obtain the property ownership certificate (Jeju Island-specific document) as proof of ownership.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in South Korea.

Make a profitable investment in Jeju Island

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Where to find a property

Discover properties on Jeju Island with the help of these websites.

• Hometown Realty - A real estate platform based in Seoul, South Korea, offering high-rise apartments, villas, single houses, and short-term rental options.
• Seoul Homes - Focused on properties in Seoul, South Korea, this platform offers a wide range of options for rent, sale, and pre-sale.
• Smile Seoul Real Estate - Based in Seoul, Korea, this platform provides various properties for sale and rent in different neighborhoods.
• AtSeoul Real-Estate - A real estate brokerage firm in Seoul, South Korea, specializing in high-rise apartments, villas, single houses, and office spaces.
• Alice Realty - A real estate agency in Seoul, South Korea, offering a variety of properties including high-rise apartments, villas, and single houses.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in South Korea.

Which properties for which budget?

As mentioned before, the average price per sqm on Jeju Island is $6,500. A 1-bedroom property with a size of 60 square meters would cost approximately $390,000, and a 2-bedroom property with a size of 85 square meters would cost approximately $553,000.

However, as you can guess, property prices will differ based on the attributes of the property and its specific location.

The prime locations on Jeju Island typically come with elevated housing prices. If you're considering Jungmun, a house could cost you around $1,230,000, but a residence in Seogwipo could be priced at $1,460,000.

On the other hand, certain areas are friendlier to your budget. You could find a condo in a remote area for $210,000, or you may discover a condominium in Jeju City priced only at $180,000.

We give a more detailed breakdown in our full pack for buying property in South Korea.

Mistakes to avoid

Here are the main pitfalls when buying property in Jeju Island, South Korea:

• Foreign ownership restrictions: Special regulations limit foreign ownership in designated areas.
• Acquisition process complexities: Foreigners may face additional paperwork and approval processes.
• Jeju-specific zoning laws: Unique land-use rules may restrict property development and usage.
• Environmental hazards: The island's volcanic activity and susceptibility to typhoons pose risks.
• Cultural differences: Understanding local customs and etiquette is crucial for smooth transactions.
• Tax implications: Foreigners might face higher property taxes and complex tax regulations.
• Leasehold vs. Freehold properties: Limited availability of freehold ownership can affect long-term investment plans.
• Market fluctuations: Property prices can be influenced by tourism trends and government policies.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our South Korea Property Pack

Living on Jeju Island

Life on Jeju Island is a perfect balance of relaxation, adventure, and natural beauty, making it an ideal place to purchase a property.

Cost of living

The cost of living on Jeju Island is generally considered to be quite reasonable. Generally, it is considered to be cheaper than other parts of South Korea, such as Seoul.

Here are some examples to better understand the cost of living in Jeju Island:

• Rent for a cozy hanok (traditional Korean house) in Seogwipo's Olle Market neighborhood: $900 per month.
• A bottle of Hallabong (Jeju's famous citrus fruit) soju from Jeju Samdasoo: $10.
• Monthly membership at a yoga studio in Jeju City's hip Aewol neighborhood: $70.
• A cup of freshly brewed Jeju Dolharubang coffee at a local café: $4.
• Utilities for a seaside villa near Hyeopjae Beach: $150 per month.
• Enjoying a traditional Jeju-style black pork BBQ feast for two: $40.
• Exploring the Jeju Loveland adult-themed sculpture park: $12 entrance fee.
• A jar of locally produced Jeju honey from O'Sulloc Tea Museum: $15.

Areas and spots

We want to show information in an easy-to-understand way. So, we made a summary table that lists the different parts of Jeju Island. For yields, prices and rents, check our property pack.

Life on Jeju Island

Jeju Island is the largest island in South Korea and is known for its tourism industry, which is the main source of income for the island. The island also has a strong agricultural sector and is home to a number of high-tech industries, such as electronics and biotechnology.

What expats usually like the most about Jeju Island are the beautiful beaches, lush gardens, and outdoor activities such as hiking, biking, and swimming. They also enjoy the delicious local seafood, unique cultural experiences, and friendly locals.

Also, you have to know that Jeju Island faces the potential of typhoons and volcanic activity due to its location in the Pacific Ocean and geological history.

Jeju Island has excellent access to healthcare, with multiple hospitals and clinics providing quality medical services.

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Renting out on Jeju Island

This section is for you if your goal is to buy a property and rent it out to generate income.

Long-term

According to the data reported by Wikipedia, the home ownership rate in South Korea is 57%, which is not much.

Unlike urban centers in South Korea, like Seoul, which attract renters due to their bustling lifestyle, Jeju Island's residents typically prioritize property ownership for their primary dwelling.

If you decide to rent out long-term, you might want to target people who are looking to live on Jeju Island for a longer period of time, such as students, professionals, and retirees. These tenants are likely to be looking for a more permanent residence, and are often seeking out the unique culture and natural beauty of the island.

Here is a little summary table we've made for you.

Now, you will probably ask us about the yields. Unlike other places, giving you an average rental yield on Jeju Island is though. The region is quite varied. For example, rental yields in Jeju City and Seogwipo are quite different from those in small and less popular areas.

Short-term

You could also decide to rent short-term to tourists visiting Jeju Island for its beaches and natural attractions, or those travelling to the island for business. Additionally, you could rent to domestic travelers looking for a weekend getaway.

If you decide to go with that option, look for properties in Seogwipo City or Jeju City, which are the two main cities on the island. The beach areas of Seogwipo such as Jungmun or Hamdeok are also good options as they are popular tourist spots.

You will have some competition though - there are around 13,085 Airbnb listings on Jeju Island. The average daily rate stands around $90.

You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals on Jeju Island can make around $1200 per month. Also, the average occupancy rate is estimated at 62%.

Is it worth buying real estate in Jeju Island then?

Buying a property in Jeju Island can be a fantastic idea if you're looking for long-term growth potential, rental income, and a unique lifestyle.

The island's property market has shown stability and the potential for capital appreciation, making it a smart investment for those willing to hold onto their property.

The island's popularity as a tourist destination means there's a consistent demand for short-term rentals, which can provide a reliable income source.

Additionally, property prices in Jeju Island are generally more affordable than in Seoul, offering spacious and tranquil living without the exorbitant costs.

South Korea's expected economic growth is another positive sign, as it can boost the demand and prices for properties.

Furthermore, Jeju Island's natural beauty, outdoor activities, and cultural experiences make it an ideal place to call home for those seeking a unique and relaxing lifestyle.

However, it might not be the right choice if you prioritize flexibility, as buying property ties you to a specific location. There are also foreign ownership restrictions in certain areas, and the property market can be subject to fluctuations, particularly in tourist-dependent regions. Foreign buyers may encounter complex paperwork, approval processes, and tax implications, which require careful consideration. Environmental hazards like typhoons and volcanic activity pose risks and may lead to additional insurance and maintenance costs. Cultural differences can also complicate transactions if you're not familiar with local customs and etiquette. In summary, Jeju Island offers great opportunities for property investment, but it's essential to weigh the pros and cons, understand the local regulations, and consider your long-term goals before taking the plunge.

Make sure you understand the real estate market in Jeju Island

Don't rush into buying the wrong property in South Korea. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.