Authored by the expert who managed and guided the team behind the South Korea Property Pack
Yes, the analysis of Jeju Island's property market is included in our pack
Are you considering investing in Jeju Island's property market? Curious about the emerging trends that could influence your decision? Want to know what factors will drive property values in 2025?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the South Korea Property Pack
1) Foreign interest in Jeju's luxury real estate will surge as it is a top 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 residential property prices will stabilize after 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
Everything you need to know is included in our Property Pack for Jeju Island
3) Foreign buyers will flock to 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 will make it harder for foreign investors to buy property in Jeju Island
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) Jeju's rural property prices will drop due to poor infrastructure development
In Jeju's rural areas, property prices are expected to dip slightly due to limited infrastructure development.
While the Jeju Special Self-Governing Province plans to invest KRW 3.8738 trillion from 2024 to 2028, most of this funding is earmarked for urban centers, leaving rural areas with minimal support. This means that rural regions might not see the same level of growth or improvement as places like Jeju City and Seogwipo.
Population trends also play a role. Although Jeju Island is growing, urban areas are the main beneficiaries of this increase. Rural areas are experiencing slower growth or even a decline, largely because they lack the job opportunities and amenities that attract new residents.
When it comes to buying property, urban areas are more appealing due to their amenities and job prospects. Rural areas, in contrast, struggle to attract buyers because they don't offer the same conveniences or employment opportunities.
Transportation is another hurdle. In rural Jeju, inadequate connectivity makes commuting difficult, which can deter potential buyers who need easy access to urban centers for work or leisure.
These factors combined mean that rural property demand is lower, contributing to the expected decline in prices. Without significant changes in infrastructure or amenities, this trend is likely to continue.
Sources: KOTRA, JPI, Jeju Island Real Estate Market
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6) Jeju City property prices will rise 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 rental yields will rise with more tourists choosing 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
Everything you need to know is included in our Pack for Jeju Island
9) Jeju City rental prices will surge 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 surge in residential investments with planned luxury resort developments
The eastern coastal areas of Jeju Island are becoming a hot spot for residential investments, thanks to planned luxury resort developments.
In places like Seogwipo, property prices are climbing as luxury resorts pop up, drawing in international tourists. This trend is fueled by projects like Jeju Shinhwa World, which is expanding with new condos and commercial spaces, making the area even more attractive for investors.
Big names in development are also jumping in, with projects like the JW Marriott Jeju Resort & Spa, which blends natural heritage with modern design. This kind of development is not just about luxury; it's about creating a unique living experience that appeals to both locals and foreigners.
The government is backing these developments with infrastructure plans, including the new Jeju New Port and urban air mobility initiatives. These efforts aim to boost tourism and support luxury resorts, making the eastern coast even more appealing.
Media outlets are shining a spotlight on the area's natural beauty and cultural heritage, which is likely to drive up property prices further. This increased visibility is making the eastern coast a prime location for those looking to invest in property.
With all these developments, the eastern coastal areas of Jeju are set to become a major hub for residential investments, offering a blend of luxury, culture, and natural beauty.
Sources: WATG, Time, Jeju Island Price Forecasts, Korea.net, KED Global
11) Jeju short-term rental rules will tighten reducing vacation home profits
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 breaks for green homes in Jeju will boost sustainable property investments
Jeju Island is rolling out new tax incentives for eco-friendly homes, making it a hotspot for sustainable property investments.
Jeju's ambitious goal to become a carbon-free island by 2030, as part of the Carbon-Free Island JEJU by 2030 (CFI2030) policy, underscores its commitment to environmental sustainability. This initiative is not just about cutting carbon emissions; it's about embracing eco-friendly technologies and practices that are reshaping the island's future.
Jeju's stunning natural beauty and its status as a UNESCO World Heritage site continue to draw both local and international buyers. This ongoing interest helps maintain strong property values, making eco-friendly homes a smart investment. Areas like Aewol are buzzing with new transport links and gentrification, further boosting the demand for sustainable properties.
Investors can also look forward to financial perks thanks to the expansion of tax credits for energy-efficient home improvements under the Inflation Reduction Act (IRA). The 45L Tax Credit, which got a boost in 2023, offers more financial incentives for developers focusing on energy-efficient homes, making green investments even more attractive.
Jeju's vibrant neighborhoods are evolving, with places like Aewol leading the charge. This area is not only seeing gentrification but also new transport links, which are driving up the demand for eco-friendly properties. It's a perfect storm of opportunity for those looking to invest in sustainable real estate.
With these tax incentives and Jeju's commitment to sustainability, the island is positioning itself as a leader in eco-friendly living. It's a win-win for investors and the environment, making Jeju a prime location for those looking to make a green investment.
Sources: OECD OPSI, Jeju Island Price Forecasts, KBKG
13) Luxury villas in Jeju will attract wealthy buyers seeking exclusive homes
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
14) Virtual reality tours will be essential for property viewings in Jeju enhancing the buying experience
Virtual reality tours are now a staple for property viewings in Jeju, making the buying process much smoother.
Thanks to the rise of VR technology in real estate, buyers can now explore homes from anywhere, which is a game-changer. In Jeju, this trend took off with services like Naver Pay's VR real estate tour in South Korea, setting the stage for others to jump on board. Consumer surveys in 2023 and 2024 revealed that 83% of home buyers found virtual tours helpful, and 41% were even comfortable buying a home without a physical visit.
VR technology has become more accessible and affordable, thanks to innovations like neural networks and data mining. This, combined with South Korea's high internet penetration and digital literacy, has made VR a natural fit for real estate. Buyers who have used VR tours often report feeling more engaged and making decisions faster, which highlights the value of VR in property viewings.
In Jeju, the use of VR tours is not just a trend but a reflection of how technology is reshaping the real estate landscape. The ability to tour properties remotely and interact with agents online has made the process more convenient and efficient. Positive feedback from buyers who used VR tours shows they feel more engaged and are able to make decisions more quickly.
As VR technology continues to evolve, it's expected to become even more integrated into the property buying process. The convenience and efficiency it offers are hard to ignore, especially in a tech-savvy place like Jeju. With the growing global adoption of VR technology, the market value is projected to reach $2.6 billion by 2025, indicating a strong future for VR in real estate.
For those considering buying property in Jeju, virtual reality tours offer a unique and effective way to explore options. The technology not only saves time but also provides a comprehensive view of potential homes. With advancements in VR, the buying experience is set to become even more immersive and informative.
Sources: Korea JoongAng Daily, TeliportMe Blog, EZ Real Estate Tools
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.