Authored by the expert who managed and guided the team behind the South Korea Property Pack
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What is happening in Jeju Island’s real estate market? Are property values rising or falling? Is Jeju still a prime destination for international buyers? How are local regulations and policies shaping the real estate landscape in 2025?
These are the questions we hear every day from investors, homeowners, and real estate enthusiasts, from Seogwipo to Jeju City and beyond. Maybe you’re curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Jeju real estate market daily. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts or comments, and we’ll strive to enhance this content for you.
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1) Jeju's luxury real estate will attract more foreign interest as it gains a reputation as a premium destination
Jeju Island is a magnet for foreign investors, especially in the luxury real estate market.
Back in 2015, a large chunk of Jeju's foreign-owned properties were snapped up by Chinese buyers, with land ownership skyrocketing by 483.7% between 2011 and 2014. This surge is fueled by Jeju's allure as a premium destination, drawing in those looking for a slice of luxury.
Luxury real estate projects are popping up, targeting international buyers. Take the Dream Tower Project, for example. It's a massive venture by Greenland Holdings and Lotte Tour Development Co., Ltd., featuring luxury apartments, a casino, and duty-free shops. Conveniently located near the airport, these developments are a breeze for international travelers to access.
Jeju's charm is further amplified by its booming tourism. In 2023, the island welcomed 13.34 million tourists, proving its lasting appeal. This steady stream of visitors keeps the demand for vacation homes and short-term rentals alive, pushing the luxury real estate market forward.
Media buzz also plays a big part in showcasing Jeju's allure to wealthy travelers. The island's stunning natural beauty and its status as a UNESCO World Heritage site are often in the spotlight, attracting both local and international buyers. This media spotlight boosts the demand for high-end properties, making Jeju a hot spot for luxury real estate.
With its reputation as a premium destination, Jeju is set to see more foreign interest in its luxury real estate market. Affluent travelers and investors are drawn to its unique offerings, ensuring its place as a top choice for luxury investments.
Sources: Focus on Geography, Juwai, Yale Journal of International Law
2) Jeju Island's property prices will stabilize following a brief period of rapid growth
Jeju Island's real estate market is experiencing a noticeable slowdown in property transactions.
In 2023, home sales were much lower compared to 2015, and the first half of 2024 saw only 3,155 transactions, continuing this trend. This drop in activity indicates a cooling off from the previous rapid growth period. The government has stepped in with stricter regulations on foreign ownership and initiatives to cool the market, aiming to deter speculative investments and stabilize property prices.
New housing projects, especially in areas like Hwabuk, are increasing the supply of homes. This boost in supply helps reduce demand pressure, balancing the market. The local government is keen on maintaining a stable market, ensuring that Jeju remains an attractive place for potential buyers without the fear of sudden price hikes.
Jeju's charm, with its natural beauty and unique culture, continues to attract interest, but the market is now more about sustainable growth rather than rapid spikes. The island's real estate is becoming more accessible, with a focus on long-term stability rather than quick profits. This shift is beneficial for those looking to invest in a property for personal use or as a steady investment.
For potential buyers, this means a more predictable market environment, where prices are less likely to fluctuate wildly. The increased housing supply and government measures are working together to create a more balanced real estate landscape. This is a good time to consider buying, as the market is stabilizing after a period of rapid growth.
Sources: MK Real Estate, Korea Times, Korea JoongAng Daily, MK Economy
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.
3) Foreign buyers will increasingly target Jeju's eco-friendly properties
There's a growing trend in real estate towards sustainable and eco-friendly properties.
Jeju Island is leading the way, with the South Korean government pushing for eco-friendly development through new regulations and incentives. This makes Jeju a hot spot for international buyers interested in green investments.
Jeju's ambitious goal to become a carbon-neutral hub by 2035 is a major draw. The island's use of renewable energy and smart grids highlights its commitment to sustainability, attracting eco-conscious investors.
Foreign buyers are particularly interested in Jeju's properties because of the island's focus on environmental sustainability. The local government's efforts to promote green living make it an appealing choice for those looking to invest in eco-friendly real estate.
Jeju's dedication to sustainability is not just a local initiative; it's been widely recognized in the media. This recognition further boosts its attractiveness to international buyers who prioritize environmental responsibility.
With its strategic initiatives and global recognition, Jeju is set to become a prime destination for eco-friendly property investments.
Sources: WBGKGGTF, Invest Korea, Focus on Geography
4) Policy changes favoring locals will make it harder for foreign investors to buy property in Jeju
Policy changes in Jeju are making it tougher for foreign investors to buy property.
In May 2023, the investment threshold for the Jeju Real Estate Investment Immigration System doubled from 500 million won to 1 billion won. This means foreign investors now need to put in more money to qualify, making it harder for them to enter the market. The system's focus has shifted, too, now emphasizing tourism and recreational facilities, which limits the types of properties available for foreign investment.
This change narrows the scope of investment opportunities, making it less attractive for foreign buyers who might be interested in a broader range of properties. On top of that, foreign buyers face similar taxes as Korean nationals, including acquisition and property taxes. These taxes increase the financial burden on foreign investors, potentially deterring them from purchasing property in Jeju.
The combination of higher investment thresholds, limited property types, and increased taxes creates a challenging environment for foreign investors. Local buyers, however, might find these changes beneficial as they reduce competition from foreign investors. This shift could lead to more opportunities for locals to invest in Jeju's real estate market.
For those considering buying property in Jeju, it's crucial to understand these policy changes and how they might impact your investment plans. The local government seems to be prioritizing local buyers, which could mean more favorable conditions for domestic investors in the future.
5) Property prices in rural Jeju may slightly decline due to limited infrastructure development
On Jeju Island, rural property prices are expected to dip slightly due to limited infrastructure development.
In 2023 and 2024, the government has focused its investment on urban areas, leaving rural regions with minimal infrastructure funding. The 2024-2028 development plan, with a budget of KRW 3.8738 trillion, prioritizes urban centers, which means rural areas are missing out on essential upgrades.
This lack of investment is causing people to move away from rural areas. While Jeju Island's overall population is growing, urban areas like Jeju City and Seogwipo are seeing the most growth because they offer more jobs and amenities.
Real estate experts note that rural properties are less in demand compared to urban ones. The absence of amenities and job opportunities in rural areas makes them less appealing to buyers. Plus, poor transportation and connectivity further discourage interest in these properties.
Surveys show that buyers prefer urban amenities such as schools, healthcare, and shopping centers, which are often missing in rural areas. This preference results in slower appreciation rates for rural properties, as historical data and market analyses confirm.
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6) Jeju City’s property prices will rise moderately as it becomes a digital nomad hub
Jeju City is becoming a hotspot for digital nomads, leading to a moderate rise in property prices.
Thanks to the new "Jeju-style" digital nomad visa, remote workers can now stay longer, blending work with leisure in this beautiful locale. This initiative is part of the government's strategy to make Jeju an attractive destination for those seeking a workcation lifestyle.
To support this influx, Jeju is ramping up its co-working spaces and digital infrastructure. The local government, alongside the Jeju International Convention Center, is creating environments perfect for remote work. Events like "Jeju Workcation with Global Digital Nomads" have shown strong interest from digital nomads worldwide, hinting at a growing demand for property.
The island's appeal is evident in its expanding community of expatriates and digital nomads. A recent event drew over 30 digital nomads from 14 countries, with many eager to return for longer stays. This enthusiasm is fueled by better connectivity and more international flights, making Jeju more accessible.
Jeju's charm lies in its unique blend of natural beauty and modern amenities, making it a perfect spot for those who want to work and relax. The island's efforts to cater to digital nomads are paying off, as seen in the rising interest and property demand.
As Jeju continues to evolve into a digital nomad hub, the property market is expected to see a steady increase. This trend is driven by the island's strategic initiatives and the growing global interest in flexible work environments.
Sources: Allwork.Space, VisaGuide.World, Freaking Nomads
7) Jeju's rental yields will rise as more tourists choose long-term stays
Jeju Island saw a remarkable rise in foreign visitors in 2024, with numbers tripling to 1.66 million compared to the previous year.
This surge in tourism shows a growing interest in Jeju, which could mean higher demand for long-term rentals. The island's charm and unique culture are drawing more people who want to stay longer and experience life there.
The new "Jeju-Style" Digital Nomad Visa is a smart move to attract remote workers. These digital nomads often prefer longer stays, blending work with leisure in a stunning setting, which can lead to increased rental yields.
Jeju is also boosting its infrastructure to support remote work, with new co-working spaces popping up in key locations. This development indicates a rising interest in long-term stays, potentially boosting rental yields as more tourists choose to stay longer.
With these changes, Jeju is becoming a hotspot for those looking to mix work and play. The island's natural beauty and improved facilities make it an ideal place for extended visits, which is great news for property investors.
Sources: Korea JoongAng Daily, AllWork.Space, Invest Korea
8) Rural Jeju rents will stay stable with balanced supply and demand
Rents in rural Jeju have stayed stable thanks to a balanced supply and demand.
In 2023, rent prices in rural Jeju saw a nominal growth of just 0.48%. When you factor in inflation, the real change was actually a negative 3.12%. This means that while rents technically went up a bit, their real value actually dropped, showing a steady rental market.
Jeju Island's population is on the rise, especially in rural spots like Woljeong-Ri. This growth has led to more households, which keeps the demand for rentals balanced. The local government is also pitching in by building new housing to support this increase, ensuring that the supply keeps up with demand.
People moving to rural Jeju are doing so at a steady pace, creating a net influx that stabilizes rental demand. The local economy, driven by agriculture and fishery, remains strong, which means people are sticking around and need places to live. This consistent demand is matched by the availability of rental properties, keeping prices stable.
Rural Jeju communities are economically stable, with many residents working in agriculture and fishery. This economic stability ensures a consistent demand for housing, which is met by the available rental properties, further contributing to the stability of rental prices.
Sources: Statista, JMIC Online
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) Jeju City rental prices will increase as it attracts more remote workers
Jeju City is becoming a hotspot for remote workers, and rental prices are expected to rise as a result.
The city has seen a boom in remote work-friendly cafes and co-working spaces, with 20 such places reviewed by remote workers in 2023. This growing infrastructure is a magnet for digital nomads, making Jeju City more appealing for those who work remotely.
Adding to the allure is the "Jeju-Style" Digital Nomad Visa, introduced by the local government in 2024. This initiative offers a unique blend of work and leisure, making it easier for remote workers to settle in. As more people take advantage of this visa, the demand for rental properties is likely to increase, pushing prices up.
Jeju City is also home to vibrant digital nomad communities and events like the "Jeju Workcation with Global Digital Nomads." These gatherings create a sense of belonging and support, further attracting remote workers. As these communities grow, more people will seek accommodations, driving rental prices higher.
With its beautiful landscapes and growing amenities, Jeju City is becoming a prime destination for remote workers. The combination of work-friendly spaces, a welcoming visa policy, and a supportive community makes it an attractive choice. As a result, rental prices are on the rise as more people flock to the area.
Sources: Workmode, Allwork.Space, Visit Korea
10) Eastern coastal areas will gain popularity for residential investments with planned luxury resort developments
The eastern coastal areas of Jeju Island are becoming hot spots for residential investments thanks to exciting luxury resort projects.
Developers are eyeing these areas, with plans like the JW Marriott Jeju Resort & Spa leading the charge. Designed by WATG, this resort blends Jeju's natural beauty with modern, sustainable architecture, making the region even more appealing.
In places like Seogwipo, property prices are on the rise. This surge is fueled by luxury resort developments and a growing number of international tourists eager to explore post-pandemic.
Building permits for luxury projects in these coastal areas have seen a significant uptick. Jeju Shinhwa World is expanding with new condos and commercial spaces, drawing in more residential investors who want to be part of this vibrant community.
These developments are not just about luxury; they offer a chance to invest in a region that's buzzing with potential. Investors are keen to tap into this thriving market, where the blend of natural beauty and modern amenities is irresistible.
Sources: WATG, Time, KED Global
11) Stricter short-term rental rules in Jeju will affect vacation home profitability
Jeju Island is seeing a surge in complaints about noise and disruption from short-term rentals.
Locals are increasingly frustrated, and this could lead to stricter regulations on these vacation homes. The community's concerns are growing, and local authorities might soon take action to address these issues.
There's also a housing shortage for residents because many homes are being used for vacation rentals. This situation is putting pressure on the government to ensure that locals have access to affordable housing, which might mean tightening the rules on short-term rentals.
Jeju Island's authorities have hinted at stricter regulations in the future. They have ambitious plans, like becoming an island with zero plastic by 2040, which could include more control over short-term rentals to manage waste better.
The environmental impact of tourism is significant, with a 50.6% rise in daily domestic waste from 2011 to 2022. This increase supports the need for regulation to reduce waste and pollution, making it likely that vacation home profitability will be affected.
Sources: Times Postech, City of Asbury Park
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12) New tax incentives for eco-friendly homes will boost sustainable property investments in Jeju Island
Jeju Island is on a mission to become carbon-free by 2030, a bold move that’s turning heads in the property market.
With its stunning landscapes and UNESCO World Heritage status, Jeju is a magnet for buyers from all over. This natural allure keeps property values strong, and eco-friendly homes are becoming hot investments. Areas like Aewol are buzzing with new transport links and gentrification, making them prime spots for sustainable living.
Investors are eyeing Jeju not just for its beauty but for the financial perks too. Thanks to expanded tax credits for energy-efficient upgrades, investors can now enjoy up to $5,000 per unit through incentives like the 45L Tax Credit, which kicked off in 2023. These benefits make green investments even more tempting.
Properties that align with Jeju’s eco-goals are seeing a rise in value. The demand for eco-certified buildings is climbing, and sales of sustainable building materials are on the up, signaling a strong market for green investments.
Jeju’s commitment to sustainability is reshaping its real estate landscape. New tax incentives for eco-friendly homes are encouraging more people to invest in sustainable properties, making it a win-win for the environment and investors.
As Jeju continues its green journey, the island is becoming a beacon for those looking to invest in a sustainable future. Eco-friendly properties are not just a trend; they’re a smart investment in a rapidly evolving market.
13) High-net-worth individuals will increasingly favor luxury villas in Jeju for exclusive living
Luxury villas in Jeju are catching the eye of wealthy buyers looking for exclusive homes.
Jeju Island is not just a pretty face; it's becoming a premium lifestyle hotspot. In 2024, the island saw over 11.6 million visitors, a 2.2% jump from the year before. This uptick in tourism, especially from international travelers, shows Jeju's growing allure. The government is also pushing Jeju as a tourism and investment hub, making it even more attractive for luxury living.
High-net-worth individuals in Asia are on the rise, and they're on the hunt for exclusive residences with top-notch amenities. This shift is fueling the demand for luxury properties in prime spots like Jeju. The island's appeal is not just about its natural beauty but also its strong community vibe, which is a big draw for affluent buyers.
Jeju's development of high-end amenities and infrastructure is a major pull. Luxury villas with stunning views and high-end apartments are hot commodities. The focus on smart home technology and eco-friendly designs makes these properties even more appealing. For those seeking a serene and luxurious lifestyle, the exclusivity and privacy offered by these homes are priceless.
Jeju's charm is not just in its landscapes but also in its lifestyle offerings. The island is becoming a magnet for those who value privacy and a high-quality lifestyle. With its growing reputation and government backing, Jeju is set to become a top choice for luxury living.
Sources: Korea JoongAng Daily, ET Edge Insights, Statista
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.