What's the property market outlook in Busan?

Authored by the expert who managed and guided the team behind the South Korea Property Pack

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Busan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the South Korean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Busan, Seoul, and Incheon. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average property prices in Busan by district?

As of September 2025, the average apartment price in Busan is ₩12.14 million per pyeong, which translates to approximately ₩6.7 million per square meter.

Haeundae-gu remains the premium district with luxury coastal condos in Marine City exceeding ₩30 million per pyeong, while Gijang-gun has shown the strongest growth with a 2.15% year-over-year increase. Suyeong-gu follows closely with a 1.94% increase, benefiting from ongoing redevelopment projects and improved infrastructure.

Geumjeong-gu and Dongnae-gu have both seen modest increases of 1.68% and 1.65% respectively, making them attractive for first-time buyers and families seeking affordability. In contrast, western districts including Gangseo-gu and Saha-gu have experienced the steepest declines, dropping more than 10% year-over-year due to high unsold inventory levels.

For a standard 84㎡ apartment, buyers can expect to pay around ₩422 million, which is roughly one-third of comparable properties in Seoul where prices average ₩13.4 million per square meter.

It's something we develop in our South Korea property pack.

How have property prices in Busan changed over the past 12 months?

Busan's residential property prices declined approximately 1.9% year-over-year as of June 2025, representing a moderation from the sharper 5% decline experienced throughout 2024.

This marks the second consecutive year of price drops after the market peaked in 2022-2023. The decline has been uneven across districts, with coastal and central areas like Haeundae and Suyeong showing greater resilience compared to outer districts facing oversupply issues.

The price correction reflects broader market adjustments following the post-pandemic property boom, tighter government regulations on speculation, and increased mortgage lending restrictions for multi-property owners. Western districts have been particularly affected, experiencing double-digit declines as high inventory levels pressure prices downward.

Despite the overall decline, certain premium segments, particularly luxury waterfront properties in Marine City and central Busan locations, have maintained relatively stable values due to continued foreign investor interest and limited supply of high-quality units.

What's the rental yield like in Busan right now compared to Seoul or other Korean cities?

Busan offers gross residential rental yields ranging from 3% to 5%, depending on the neighborhood and property type, which is slightly below Seoul's average of approximately 4.3%.

City/Area	Rental Yield Range	Core Area Yields
Busan	3-5%	Below 2% in prime areas
Seoul	4.3% average	2-4% in luxury zones
Seoul (emerging districts)	5-7%	Higher growth potential
Incheon	3-4%	Moderate returns
Busan (tourist areas)	Higher short-term	Strong seasonal demand

How many new housing units are expected to be completed in Busan this year?

Busan is projected to complete approximately 11,418 new apartment units in 2025, representing a significant 58% decline from the 27,077 units completed in 2022.

This sharp reduction in new housing supply reflects broader trends across South Korea, where the country is experiencing a 10-year low in housing completions. Busan is among the regions seeing the steepest decline in new construction activity, which could potentially support price stabilization in the medium term as supply constraints ease pressure on the market.

The reduced construction activity is partly due to tighter development financing, slower approval processes, and developers' cautious approach following recent market corrections. This supply constraint may create opportunities for existing property owners as inventory tightens over time.

What's the current vacancy rate in Busan's residential and commercial property markets?

Busan's residential market shows signs of oversupply with unsold completed housing stock reaching 2,663 units in June 2025, marking the highest level in 15 years.

This elevated inventory level indicates a significant imbalance between supply and demand, particularly affecting newly completed developments in outer districts. The high unsold inventory has been a key factor contributing to the ongoing price pressures in certain neighborhoods.

For commercial properties, while specific vacancy rates for Busan haven't been published, reports indicate sluggish leasing activity with rising inventory levels in key retail and office segments. This reflects broader economic uncertainties and changing work patterns that have affected commercial real estate demand across South Korea.

The residential oversupply situation is expected to gradually improve as new construction activity decreases significantly in 2025, potentially leading to market rebalancing over the next 12-18 months.

Are foreign investors actively buying in Busan, and how has that trend shifted recently?

Foreign investment in Busan's property market is steadily rising, driven by favorable exchange rates, affordability compared to Seoul, and Busan's growing international profile as a major port city.

Southeast Asian buyers have shown particular interest in Busan properties, with most foreign investment concentrated in luxury waterfront developments, especially in Haeundae and Marine City areas. The weak Korean won has made properties more attractive to international buyers with stronger currencies.

Foreign investors are primarily targeting high-end residential properties and vacation homes near beaches and tourist attractions, taking advantage of Busan's position as South Korea's second-largest city with strong tourism fundamentals. The trend has accelerated in 2025 as Seoul prices have become increasingly prohibitive for international buyers.

It's something we develop in our South Korea property pack.

What government policies or regulations are most affecting the Busan property market this year?

The South Korean government is actively promoting affordable housing initiatives and has implemented rental increase caps in major cities, including Busan, which directly affects rental property returns.

Acquisition taxes ranging from 4.6% to 9.4% and enhanced property holding taxes continue to discourage speculative investment, while tighter mortgage lending rules specifically target multi-property owners and speculators. New trading restrictions in designated speculation zones have been implemented in 2025 to cool overheated segments.

The government is encouraging rental housing supply through public-private partnerships and offering incentives for developers to build affordable units. These policies aim to balance housing supply while preventing excessive speculation that characterized the 2021-2022 boom period.

Reforms also include enhanced tenant protections and rental market transparency measures, which affect how landlords can adjust rents and manage their properties, potentially impacting long-term rental yields for investors.

How are interest rate changes impacting mortgage availability and affordability in Busan?

Average mortgage rates in South Korea have decreased to 3.98% for fixed-rate loans as of April 2025, down from 4.17% earlier in the year, improving affordability conditions for qualified borrowers.

The decline in interest rates has modestly improved loan accessibility and reduced monthly payment burdens for new buyers, though this benefit is partially offset by continued property price weakness in slower-performing districts. Lenders have maintained relatively strict qualification criteria, particularly for investment properties and non-resident buyers.

Mortgage availability remains good for primary residences and well-qualified buyers, but lending standards are notably tighter for speculative purchases and multi-property acquisitions. Interest rates in areas designated as speculation zones tend to be slightly higher than the national average.

The improved financing environment has helped stabilize transaction volumes in Busan, though it hasn't been sufficient to reverse the overall price decline trend that began in 2024.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the most in-demand neighborhoods in Busan for both buyers and renters right now?

Haeundae-gu leads demand due to its luxury international atmosphere and prestigious seaside location, attracting both high-end buyers and premium renters seeking coastal lifestyle amenities.

1. Haeundae-gu: Premium beachside district with international appeal and luxury high-rises
2. Suyeong-gu: Central location with excellent infrastructure and ongoing development projects
3. Busanjin-gu: Urban commercial core, particularly Seomyeon area popular with young professionals
4. Nam-gu: Educational hub offering good value for families with school-age children
5. Yeonje-gu: Well-connected district balancing convenience and affordability
6. Dongnae-gu: Traditional area with cultural attractions and moderate pricing
7. Geumjeong-gu: Emerging area attracting newcomers with competitive prices and development potential

What infrastructure or development projects are underway that could drive up property values in Busan?

Busan is implementing comprehensive urban development initiatives based on "15-Minute City" principles, incorporating smart traffic management systems and expanded green zones throughout the metropolitan area.

Major waterfront and luxury development projects, particularly expansions in the Marine City area, have already significantly boosted transaction values and attracted increased investment demand from both domestic and international buyers. The ongoing financial district expansion is creating new commercial and residential opportunities in central Busan.

"Innovation City" projects are being developed to enhance Busan's position as a technology and business hub, while substantial transport and connectivity upgrades aim to improve the city's long-term attractiveness for residents and investors. These infrastructure investments are particularly focused on connecting suburban districts to central business areas more efficiently.

The combination of urban modernization, enhanced transportation networks, and strategic development zones is expected to create value appreciation opportunities in currently undervalued neighborhoods that benefit from improved connectivity and amenities.

How strong is the demand for short-term rentals in Busan, especially with tourism levels post-COVID?

Short-term rental demand in Busan remains robust with an average occupancy rate of 61% near Busan Station, supported by over 8,700 active Airbnb listings generating average monthly rentals of ₩1.1-1.5 million.

Tourist volume has rebounded strongly post-COVID, driving particularly strong seasonal demand during peak summer months, especially in August, and in neighborhoods near central transit stations and beach areas. The recovery in international tourism has been a key driver of short-term rental performance.

Properties located near major attractions, transportation hubs, and beach districts command premium rates and higher occupancy levels. The vacation rental sector shows especial activity in core tourism zones and beachside districts, benefiting from Busan's status as a major coastal destination.

The combination of domestic tourism growth and returning international visitors has created a stable foundation for short-term rental investments, particularly in well-located properties that cater to both business and leisure travelers.

It's something we develop in our South Korea property pack.

What do local real estate experts forecast for Busan property prices over the next 12 to 24 months?

Most local real estate analysts expect Busan property prices to stabilize or experience mild further declines through late 2025, followed by possible slight improvement as excess inventory clears from the market.

Luxury and coastal properties are forecasted to remain the most resilient segments, with premium waterfront developments likely to maintain or slowly appreciate in value due to limited supply and continued foreign interest. Budget areas and oversupplied districts are expected to face continued pricing pressures until demand fundamentals improve.

The consensus view suggests market stabilization will occur once the current inventory overhang is absorbed, potentially by late 2025 or early 2026. Factors supporting this outlook include reduced new construction, improving tourism fundamentals, and supportive interest rate environment.

Key variables that could accelerate recovery include faster-than-expected foreign investment growth, successful completion of major infrastructure projects, and potential government stimulus measures targeting the housing sector.

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.

Sources

1. Busan Metropolitan City Official Press Releases
2. Global Property Guide - South Korea Price History
3. BambooRoutes - Busan Price Forecasts
4. BambooRoutes - South Korea Real Estate Market Outlook
5. BambooRoutes - Busan Property Analysis
6. Verified Market Research - South Korea Luxury Residential Market
7. Airbtics - Busan Airbnb Market Analysis
8. Maeil Business News Korea
9. Chosun Ilbo English
10. Korea Housing Finance Corporation