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Jeju Island's property market shows steady growth with residential prices averaging 5 million KRW per square meter as of September 2025. The market has stabilized after rapid appreciation in 2021-2023, with urban and coastal areas continuing to see 3-7% annual growth while rural areas remain flat.
Foreign buyers represent 10% of transactions, significantly higher than mainland Korea, while new housing supply increased dramatically from 132 units in 2022 to 1,493 units in 2024. Tourism demand continues to drive short-term rental investments, particularly in coastal zones.
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Jeju Island's residential property market shows moderate growth with prices averaging 5 million KRW per square meter, driven by tourism demand and limited supply.
Foreign buyers make up 10% of transactions while rental yields range from 3-5%, comparable to other major South Korean cities like Seoul and Busan.
| Market Indicator | Current Status (Sept 2025) | Forecast 2025-2028 |
|---|---|---|
| Average Price per m² | 5 million KRW ($3,600) | 3-7% annual growth urban/coastal |
| New Housing Units | 1,493 units (2024) | 7,000 public units planned |
| Rental Yields | 3-5% annually | Stable, higher in tourism areas |
| Foreign Buyers | 10% of transactions | Continued strong presence |
| Time on Market | Higher than mainland | Gradual improvement expected |
| Population Growth | Stable with minor increases | Supported by domestic migration |
| Infrastructure Investment | 3+ trillion won in 2024 | Major projects continuing |
What is the current average price per square meter for residential properties in Jeju Island?
The current average price per square meter for residential properties in Jeju Island stands at approximately 5 million KRW (about $3,600) as of September 2025.
Over the past five years, Jeju Island has experienced steady price growth, particularly in urban and coastal areas where increases have averaged between 3-7% annually. Rural areas, however, have remained flat or experienced slight declines during this period.
The most significant price appreciation occurred during 2021-2023, when the market saw rapid growth before stabilizing due to government cooling measures and speculation controls implemented to moderate the market. Urban centers like Jeju City and coastal areas popular with tourists have consistently outperformed rural inland regions.
This price level positions Jeju Island as more affordable than Seoul's premium areas but competitive with other provincial markets in South Korea. The stability following the 2021-2023 surge suggests the market has found a sustainable pricing equilibrium.
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How many new housing units were constructed in Jeju Island last year and what are the projections?
Jeju Island completed 1,493 new apartment units in 2024, representing a dramatic increase from just 132 units completed in 2022.
This substantial growth in housing supply contrasts sharply with other regions of South Korea that experienced sharp declines in new construction during the same period. The island has bucked the national trend by maintaining robust construction activity.
Looking ahead, the government has announced plans for 7,000 new public housing units as part of major construction projects designed to support continued growth through 2026. This represents a significant commitment to expanding housing supply on the island.
The combination of public and private sector development is expected to continue expanding housing supply over the next two years, with infrastructure investments of more than 3 trillion won allocated for public projects in 2024 alone supporting this growth trajectory.
What are the current rental yields for Jeju Island properties compared to Seoul and Busan?
Rental yields for both apartments and villas in Jeju Island typically range from 3-5% annually, with higher yields available in tourist hotspots for short-term rentals, though these require more active management.
| Location | Apartments (%) | Villas (%) | Notes |
|---|---|---|---|
| Jeju Island | 3-5% | 3-5% | Stronger in short-term rental/tourist zones |
| Seoul | 2.7-6.6% | 2.7-3.5% | High yields in small units, premium areas lower |
| Busan | 3-5% | Under 2% | Airbnb yields higher in tourist districts |
| National Average | 2-4% | 2-4% | Varies significantly by location |
What is the composition of property buyers in Jeju Island?
Foreign buyers represented approximately 10% of residential transactions in Jeju Island during 2024, significantly higher than the national average of 0.97% for South Korea.
Additionally, 6% of homebuyers in Jeju were expatriates or foreigners living in South Korea, indicating strong international interest in the island's property market. This high foreign participation reflects Jeju's appeal as both an investment destination and lifestyle choice.
The remaining 84% of buyers were domestic South Korean purchasers, including both local residents and investors from Seoul, Busan, and other mainland cities. Many domestic buyers are attracted to Jeju for vacation homes, retirement properties, and tourism-related investments.
This buyer composition makes Jeju Island unique among South Korean property markets, with international participation rates ten times higher than the national average, contributing to sustained demand and market stability.
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How long do properties typically stay on the market in Jeju Island?
Properties in Jeju Island currently take longer to sell compared to mainland South Korea, with the market showing signs of sluggish turnover compared to peak demand years.
As of early 2025, there were 2,486 unsold homes on the island, indicating higher inventory levels and longer marketing periods than during the rapid growth phase of 2021-2023. This inventory buildup suggests buyers are more selective and price-sensitive than in previous years.
The extended time on market reflects the market's transition from the speculative surge to a more balanced state, where properties must be competitively priced and offer genuine value to attract buyers. Urban and coastal properties tend to move faster than rural properties.
This slower pace actually benefits serious buyers by providing more selection and negotiating power, while sellers need to ensure realistic pricing and property presentation to achieve timely sales.
What is Jeju Island's population trend and its impact on housing demand?
Jeju Island's population growth has slowed since its 2010s peak, but the local population remains broadly stable with minor increases tied to domestic migration and retiree inflows.
The island continues to attract domestic migrants, particularly retirees from Seoul and other major cities seeking a more relaxed lifestyle and favorable climate. This demographic shift supports steady housing demand, especially for larger properties suitable for permanent residence.
Young professionals and families also contribute to population stability, drawn by government initiatives to develop the island's technology sector and tourism infrastructure. The establishment of the Jeju Science Park has attracted tech workers and entrepreneurs.
This population stability, combined with significant tourist traffic, creates a solid foundation for housing demand. The tourism sector alone generates substantial short-term accommodation needs, supporting both rental markets and property investment demand.
How does tourism impact Jeju Island's property demand?
Tourism remains a major driver of property demand in Jeju Island, with millions of visitors arriving annually and creating substantial demand for both residential and short-term rental properties.
A significant share of residential property demand is directly linked to tourism activity, especially in coastal and urban zones where visitors concentrate. Properties in these areas command premium prices due to their dual potential as vacation homes and rental investments.
The tourism sector influences property investment decisions, with many buyers specifically seeking properties suitable for Airbnb and other short-term rental platforms. These tourism-oriented investments often achieve higher yields than traditional long-term rentals.
Coastal properties near popular beaches, hiking trails, and cultural attractions see the strongest tourism-driven demand, while properties near airports and major hotels also benefit from the steady flow of visitors throughout the year.
What are the current mortgage conditions in South Korea affecting Jeju buyers?
The Bank of Korea's base interest rate stands at approximately 3.0% as of September 2025, having fluctuated over the past year in response to economic stabilization efforts and inflation concerns.
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Mortgage rates have stabilized from previous highs, contributing to the steady property price environment in Jeju Island. The current rate environment supports affordability for qualified buyers while preventing speculative excess.
Lending standards remain relatively conservative, with banks requiring substantial down payments and income verification. Foreign buyers face additional documentation requirements but can access financing through local banking relationships.
The stable interest rate environment has helped Jeju property prices find equilibrium after the rapid appreciation of 2021-2023, creating more predictable financing conditions for both domestic and international buyers.
What restrictions do foreign buyers face in Jeju Island?
Non-Korean buyers can purchase property in Jeju Island with proper registration, but face a minimum investment threshold of approximately 500 million KRW ($374,000) for residency eligibility.
Jeju Island's policies are more favorable toward foreign buyers compared to most mainland jurisdictions, reflecting the government's desire to attract international investment and residents to the island. However, recent years have seen tighter controls implemented to curb speculation.
Foreign buyers must complete registration procedures and may face additional scrutiny for large transactions or multiple property purchases. The approval process typically takes several weeks but is generally straightforward for legitimate buyers meeting investment thresholds.
Despite these regulations, the relatively high rate of foreign transactions (10% of total sales) demonstrates that international buyers find the process manageable and the investment opportunity attractive compared to other South Korean markets.
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What is the economic outlook for Jeju Island and its impact on property values?
Jeju Island's projected regional GDP growth is expected to be moderate, with low single-digit annual growth rates over the next three years, correlating with steady property value appreciation of 3-7% per year in prime areas.
The island's economy benefits from diversified revenue streams including tourism, agriculture, technology development, and renewable energy projects. The government's investment in the Jeju Science Park and other technology initiatives supports long-term economic stability.
Tourism infrastructure development continues to drive economic growth, with major resort projects and transportation improvements enhancing the island's appeal to both visitors and residents. These investments create employment and support local spending power.
The correlation between moderate economic growth and property value appreciation suggests a sustainable market trajectory without the risks associated with speculative bubbles or economic overheating.
What major infrastructure projects are underway in Jeju Island?
Major ongoing infrastructure projects in Jeju Island include the second Jeju Science Park complex, airport upgrades, new highway construction, and large-scale resort developments.
Early 2024 saw more than 3 trillion won allocated for public infrastructure outlays, representing a significant commitment to the island's development. These projects span transportation, technology, tourism, and residential infrastructure.
Key developments include:
- Expansion of Jeju International Airport to handle increased tourist traffic
- New highway connections improving accessibility between major population centers
- Technology park expansions attracting international companies and skilled workers
- Resort and entertainment complexes enhancing tourism offerings
- Renewable energy projects positioning Jeju as a sustainability leader
These infrastructure investments are expected to support higher property prices in adjacent areas, particularly near new resorts, technology hubs, and improved transportation corridors. Properties within walking distance or short drives of these developments typically see the strongest appreciation.
What do property price forecasts predict for Jeju Island over the next 3-5 years?
Property price forecasts for Jeju Island predict annual increases of 3-7% in urban and coastal areas over the next 3-5 years, while rural property values are expected to remain flat or experience slight declines.
The market is expected to maintain its robust character without returning to the speculative surges seen in 2021-2023. This moderate growth trajectory reflects a maturing market finding sustainable equilibrium between supply and demand.
Urban centers like Jeju City and prime coastal areas are likely to see the strongest appreciation due to continued tourism demand, infrastructure investment, and limited developable land supply. Properties near major developments and transportation hubs should outperform the market average.
Rural and inland properties face weaker prospects due to limited tourism appeal and economic development, though they may attract buyers seeking affordable options for permanent residence or long-term investment.
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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.
Jeju Island's property market presents a balanced opportunity for both investors and lifestyle buyers, with moderate growth prospects supported by steady tourism demand and infrastructure development.
The market's stabilization following the 2021-2023 surge creates favorable conditions for selective buyers, though rural areas may continue to underperform urban and coastal locations.
Sources
- Jeju Island House Prices - BambooRoutes
- Jeju Island Price Forecasts - BambooRoutes
- Jeju Island Property Market - BambooRoutes
- Chosun Daily English
- Maeil Business Newspaper
- Average Rent Seoul - BambooRoutes
- Global Property Guide South Korea
- Average Rent South Korea - BambooRoutes
- Invest Asian Busan Property
- Jeju Island Real Estate Market - BambooRoutes