Authored by the expert who managed and guided the team behind the South Korea Property Pack
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What will happen in Jeju Island’s real estate market? Will prices go up or down? Is Jeju Island still a hotspot for foreign investors? How is South Korea’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, developers, and clients who buy properties in Jeju Island, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Rental yields for coastal properties will increase as they attract more tourists and short-term renters
Coastal properties in Jeju Island are hot commodities for tourists and short-term renters.
In 2023, Jeju Island attracted 13.34 million tourists, keeping its reputation as a must-visit spot. This steady stream of visitors means there's always a high demand for rentals, making it a lucrative market for property owners.
The short-term rental scene is booming, with over 12,600 sales in the first half of 2024 alone. Travelers are on the lookout for unique experiences, and modern beach houses with stunning ocean views and top-notch amenities are exactly what they crave.
Tourism is not just boosting rental yields; it's also driving up property values in coastal areas. The natural beauty of Jeju, combined with its investment potential, makes it a prime location for real estate. Government efforts to enhance tourism and infrastructure are further fueling this growth.
Jeju's appeal isn't just about the scenery; it's about the experience. The island's unique charm and the promise of a luxurious stay are drawing more visitors each year. This trend is a goldmine for property investors looking to capitalize on the island's popularity.
With the right property, you can tap into this thriving market and enjoy the benefits of high rental yields. The combination of natural allure and strategic development makes Jeju Island a smart choice for real estate investment.
Sources: Invest Korea, MK Economy, Globe Newswire
2) More foreign investors will target Jeju Island as it gains fame as a global tourist spot
Jeju Island is catching the eye of foreign buyers as it becomes a hot spot for global tourism.
Thanks to government efforts to boost tourism and improve infrastructure, more international tourists are visiting Jeju Island. This steady influx of visitors is keeping the demand for premium properties high, reinforcing the island's status as a sought-after destination.
The government is also enhancing air travel by making Jeju a test area for urban air mobility (UAM). This move is set to improve connectivity, drawing even more international tourists and making the island more attractive to foreign investors. In places like Seogwipo and Jeju City, the rise of luxury resorts is pushing up demand for prime real estate, further enticing global tourists and investors.
Foreign investment in South Korea is booming, with FDI pledges hitting record highs in 2023. This growth is fueled by strong performances in sectors such as chips, batteries, and transportation, with the service sector also seeing a boost. Jeju Island's stunning natural landscapes and its designation as a UNESCO World Heritage site continue to draw interest from both local and international buyers, keeping the demand for high-end properties robust.
Sources: Santander Trade, Yonhap News Agency, Korea.net
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.
4) Property values in Jeju Island's rural interior will drop as urbanization continues
On Jeju Island, more people are moving to urban areas than ever before.
Urban centers like Seogwipo and Jeju City are seeing a boom in property values. This is because of limited housing and new developments that are in high demand. The government is also pushing Jeju as a cultural and tourism hotspot, which makes these cities even more attractive. As a result, investments and people are flocking to urban areas, leaving rural regions behind.
The younger crowd is all about city life. They love the modern amenities, lively social scenes, and better schools that cities offer. This trend means fewer people are interested in rural properties, especially in the island's interior.
Farming isn't what it used to be in rural Jeju. With agriculture not driving the economy as much, there's less reason to invest in rural properties. Plus, businesses are moving to the cities, which means less economic activity in the countryside.
All these factors are causing property values in rural areas to drop. As urbanization continues, rural areas are losing their appeal and resources. This shift is making it harder for rural regions to keep up with the bustling urban centers.
So, if you're thinking about buying property on Jeju Island, keep in mind that urban areas are where the action is. Rural areas might offer peace and quiet, but they come with challenges as urbanization trends continue.
Sources: Korea.net, KRIHS, World Population Review
5) Apartment prices in Jeju City will rise steadily as more young professionals move in
Jeju City is drawing in young professionals and shows no signs of stopping.
With rising job opportunities, the city is a hotspot for career-driven individuals. Initiatives like the J-Academy are equipping budding entrepreneurs with global business skills, making Jeju City a prime location for those eager to launch their own ventures.
The tech scene is booming with new startups and remote work hubs popping up. Jeju Island is becoming a haven for digital nomads, with plans for live commerce studios and creative offices. This tech-friendly environment not only attracts talent but also boosts the local economy.
Government incentives are a big draw, offering financial and consultative support through the "creative economy" policy. Young professionals benefit from expert mentoring, which is crucial for establishing themselves in the business world.
Getting around is a breeze thanks to improved transportation links. The island's public transport system, with its extensive bus and taxi network, makes commuting easy and convenient, a major plus for those who value accessibility.
Jeju City's charm extends beyond work, with its natural beauty and cultural attractions offering a unique lifestyle. The development of luxury resorts and urban areas adds to its allure, making it a desirable place to live.
The demand for modern apartments is rising, driven by the influx of tech startups and remote workers. Properties with ocean views or beach access are particularly sought after, leading to a steady increase in apartment prices.
Sources: Korea Times, Smart City Korea, Trazy Blog, Jeju Island Price Forecasts
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6) Jeju Island’s home prices will rise moderately as demand keeps growing
Jeju Island is on track for a moderate rise in residential property prices as demand continues to grow.
The island's population is steadily increasing, with a 0.58% growth in 2024 compared to the previous year. This steady rise in residents naturally boosts the demand for housing, making Jeju a hotspot for potential buyers. The island's charm isn't just for locals; it's a favorite among tourists too. This ongoing interest in tourism keeps the demand for vacation homes and short-term rentals high, especially in areas that attract visitors.
Jeju's government is also playing a big role in this trend. They've been actively promoting the island as a prime living destination, focusing on tourism and infrastructure development. These efforts make Jeju even more appealing for both living and investing, which in turn supports property values. The island's natural beauty and modern amenities are drawing in retirees and remote workers who are looking for more space and a better quality of life.
Areas like Seogwipo and Jeju City are particularly attractive to these groups, likely driving up property values there. Infrastructure improvements, such as better public transportation, are making the island more accessible and appealing to both residents and investors. This contributes to the growing demand for housing, as more people see Jeju as a viable place to live and work.
Jeju's allure isn't just about its landscapes; it's about the lifestyle it offers. The combination of natural beauty, modern conveniences, and a welcoming community makes it a top choice for many. As more people discover what Jeju has to offer, the demand for property is expected to continue its upward trend.
With all these factors in play, Jeju Island is set to experience a steady increase in property prices, making it an attractive option for those looking to invest in real estate. The island's unique blend of natural beauty and modern living is a big draw for many, ensuring that demand for housing will remain strong.
Sources: Macrotrends, MK.co.kr
7) Property prices on the southwestern coast will rise as vacation rentals become more popular there
Jeju Island is seeing a tourism boom, with over 13 million visitors annually.
In 2024, the island welcomed more foreign tourists, especially from China, which has boosted demand for vacation rentals in scenic spots like the southwestern coast. This area is becoming a hot spot due to its stunning landscapes and new developments.
The southwestern coast is not just about natural beauty; it's also about luxury resorts and better transportation. These improvements make it more accessible and appealing, which is likely to push property prices up as vacation rentals become more sought after.
Government efforts to enhance tourism and infrastructure are making Jeju Island even more attractive. The focus on sustainability and eco-friendly living is drawing investors interested in eco-certified properties, potentially raising property values further.
Media and social media are buzzing about the southwestern coast's attractions, increasing its popularity among tourists and investors. This attention is likely to keep driving interest and investment in the area.
With all these factors, the southwestern coast is set to become a prime location for vacation rentals, leading to a rise in property prices as more people flock to this desirable spot.
Sources: Invest Korea, Korea JoongAng Daily
8) Rental yields in Jeju City will rise as rental demand exceeds supply
Jeju City is buzzing with 13.34 million tourists visiting in 2023, mostly from within the country.
This surge in visitors has sparked a growing demand for places to stay, which is pushing rental yields higher. The trend of "workation" is catching on, with over 10,000 people blending work and leisure in Jeju in 2023, and the aim is to double that number in 2024.
More folks are eyeing Jeju as a sweet spot for both work and play, which means rental properties are in hot demand. Even though Jeju Island might see a dip in property prices due to economic hiccups, Jeju City is expected to buck the trend.
With limited housing and rising property prices, Jeju City is poised for high price increases. This scarcity of homes, combined with the climbing prices, suggests that rental yields will likely rise as demand keeps outstripping supply.
For those considering a property investment, Jeju City offers a promising opportunity. The city's unique blend of natural beauty and modern amenities makes it a magnet for both tourists and remote workers.
Sources: Invest Korea, Invest Korea
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.
9) Demand for international schools and family-friendly areas will grow as the expat community expands
Jeju Island is becoming a popular spot for expatriates, with the number of registered foreigners rising from 20.7 thousand to 21.6 thousand between 2021 and 2022.
As more people from abroad settle here, the demand for international schools has shot up. Enrollment in these schools jumped from 73.7% in 2019 to 93.7% in 2022, showing that expatriate families are eager to give their kids an education that matches their global lifestyle.
Expat families are also on the lookout for family-friendly neighborhoods to call home. Places like Seogwipo and Aewol are gaining popularity thanks to their stunning landscapes and modern amenities. These areas are seeing a wave of gentrification and better transport options, making them ideal for families wanting a cozy yet convenient living environment.
The Jeju Global Education City Project is a big draw for families, aiming to create a welcoming atmosphere with top-notch schools. This government initiative has already led to the opening of several international schools, catering to the needs of the growing expat community.
With these developments, Jeju is not just a tourist destination but a thriving hub for international families. The island's appeal is further boosted by its natural beauty and the promise of a high-quality lifestyle.
Sources: Statista, Korea Times, Korea JoongAng Daily, Korea International School Network
10) Demand for homes with office spaces will grow as remote work becomes more common
In South Korea, remote work has become a major trend, especially in 2023 and 2024.
With more people working from home, there's a noticeable shift in what buyers want in a property. Homes with adaptable layouts are in high demand, as they allow for a dedicated workspace. This is particularly appealing in urban areas where space is at a premium, making a home office a valuable feature.
Real estate listings now often highlight home office amenities to attract potential buyers. This change reflects consumer surveys from 2024, which show a strong preference for properties that can support remote work. The emphasis on home office features is a direct response to this growing demand.
Additionally, the rise in sales of home office furniture and equipment in South Korea further illustrates the need for flexible workspaces. Media coverage frequently points out the benefits of remote work, such as better work-life balance and increased productivity, which are driving more people to seek homes that support this lifestyle.
As remote work becomes more common, the popularity of properties with home office spaces is expected to continue growing. This trend is not just about having a desk and chair; it's about creating an environment that enhances productivity and comfort.
For those considering buying a property, understanding this shift can be crucial. Investing in a home with a dedicated office space could be a smart move, given the current trends in the housing market.
Sources: Statista, The McLemore Group, For Insights Consultancy
11) Demand for larger homes with flexible layouts will grow as multi-generational living becomes more popular
In South Korea, multi-generational households are on the rise, especially in 2023 and 2024.
Families are increasingly choosing to live together, with grandparents, parents, and children all under one roof. This shift is not just a trend among multicultural families but a broader societal change. As a result, the demand for larger homes is growing, particularly in places like Jeju Island.
Jeju Island is seeing a surge in interest for spacious homes, driven by an aging population. In 2023, there were 9.50 million elderly individuals in South Korea, prompting families to seek homes that can comfortably accommodate everyone. The real estate market is responding by offering homes with flexible layouts, perfect for extended families.
People now prefer homes with adaptable spaces. They want open floor plans and extra rooms that can serve multiple purposes. This flexibility is key for families whose needs change over time, making homes with reconfigurable spaces highly desirable.
Architectural trends are evolving to meet these demands. The modular housing industry, for instance, is providing customizable designs that can be rearranged to fit different family activities. This adaptability is crucial for multi-generational living, where each family member's needs can vary significantly.
In South Korea, the trend of multi-generational living is reshaping the housing market. Homes with flexible layouts are becoming essential, as families look for spaces that can grow and change with them. This shift is not just about space but about creating environments that support the diverse needs of all family members.
Sources: Korean Statistical Information Service, Designboom, Sutter and Nugent
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12) Property demand in eastern coastal areas will drop because of worries about rising sea levels and erosion
The eastern coastal regions of Jeju Island are facing serious challenges due to rising sea levels and erosion.
Jeju Island has seen the highest annual sea level rise in South Korea, increasing by 4.26 millimeters each year, according to the Korea Hydrographic and Oceanographic Agency. This has made potential property buyers cautious about investing in these coastal areas. By 2030, the sea level could rise by 2.97 centimeters, potentially submerging large areas and affecting many residents.
Beach erosion is another concern, with the eastern coast of Korea, including Jeju, experiencing shoreline erosion at a rate of 1 meter every 10 years. This is primarily due to the rising sea levels. The Ministry of Oceans and Fisheries has highlighted that a significant portion of coastal areas are at risk of severe erosion, which has been widely covered in the media.
Local real estate agents report a shift in buyer preferences towards inland properties as people become more aware of the risks associated with coastal living. This trend is driven by the increasing awareness of environmental changes and the potential impact on property values.
Government and local authorities are not ignoring these changes. They are actively acknowledging the risks, which has further fueled concerns among potential buyers. The media coverage has played a significant role in bringing these issues to the forefront, influencing buyer behavior.
As a result, the demand for coastal properties is declining, with more people opting for safer inland investments. This shift is expected to continue as environmental concerns persist.
Sources: Korea Times, Korea Times, Journal of Coastal Research, Communities in Crisis
13) Luxury property prices in Jeju will rise significantly due to high demand and limited supply from wealthy buyers
Jeju Island's property prices have been climbing steadily, catching the eye of both local and international buyers.
In 2023, foreign investment, especially from China, significantly boosted property values on Jeju. The island's charm and UNESCO status make it a hot spot, but land for new luxury developments is scarce, adding to the price surge.
Jeju is increasingly appealing to the wealthy, with more luxury amenities popping up to cater to their tastes. This trend shows that affluent buyers are keen on Jeju properties, pushing demand even higher.
Government efforts to preserve Jeju's natural beauty mean strict limits on new construction. While this enhances the island's allure, it also restricts development, further driving up property values.
Media buzz about Jeju as a prime spot for the affluent has put it on the map for high-end investors. This visibility, coupled with the limited availability of luxury properties, is a major factor in the rising prices.
Looking at similar markets, there's a clear link between limited supply and price hikes. Experts believe Jeju's luxury real estate market will keep thriving due to its unique appeal and tight supply.
Sources: Moving Countries Guide, Korea Times
15) Properties near protected areas in Jeju will become more attractive due to environmental preservation efforts
Jeju Island is making big moves to keep its natural beauty intact through various environmental efforts.
With increased government funding, Jeju has been able to support projects like the Gotjawal Private Land Purchase Promotion, which has successfully acquired large areas for conservation. This commitment not only protects Jeju's unique ecosystems but also makes properties near these protected areas more attractive. Properties in places like Seogwipo City and Jungmun-dong are seeing rising values because of their closeness to these natural wonders.
People are willing to pay more for homes near these attractions, showing a strong desire to live close to nature. The demand for properties near Jeju's natural attractions is on the rise, and this is reflected in the higher prices for homes in these areas. It's clear that being near nature is a big draw for property buyers.
Jeju's focus on eco-tourism is also playing a role in this trend. The island has developed eco-friendly accommodations and green tourism programs, which not only bring in more visitors but also make properties near protected areas more desirable. Eco-tourism initiatives are boosting the appeal of properties in these regions, making them hot spots for potential buyers.
With the establishment of eco-tourism areas and the promotion of eco-friendly developments, Jeju is setting itself apart. These efforts are making properties in these regions more appealing to those looking to invest in real estate. The island's commitment to sustainability is a key factor in this growing interest.
Environmental initiatives to preserve Jeju's natural beauty are enhancing the appeal of properties near protected areas. Jeju's dedication to conservation is a major selling point for those considering buying property on the island. The combination of natural beauty and sustainable living is a winning formula for attracting property buyers.
Sources: World Bank Group, Korea Times, OECD-OPSI
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.