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Daegu's residential property market is currently stabilizing after recent volatility, with average apartment prices around ₩9.9 million per square meter in prime areas.
The market experienced a notable decline in 2024 but shows signs of recovery in 2025, supported by government policies and infrastructure investments that make it an increasingly attractive option for both domestic and international property investors.
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Daegu's property market is recovering from a 2024 dip with stabilizing prices and improving transaction volumes.
Average apartment prices range from ₩6.7-9.9 million per square meter, offering better rental yields than Seoul at 4-5%.
| Market Indicator | Current Status | Outlook |
|---|---|---|
| Average Apartment Price | ₩6.7-9.9 million/sqm | Stabilizing with modest growth |
| Price Change (24 months) | -3.9% in 2024, +27% over 5 years | Recovery expected 2025-2026 |
| Rental Yield | 4-5% | Higher than Seoul's 2-4% |
| New Supply | 1,600+ units planned 2025-2027 | Managed supply increase |
| Vacancy Rate | 9,065 unsold units (decreasing) | Improving absorption |
| Transaction Volume | Increasing in popular districts | Positive momentum |
| Mortgage Rates | 3.75-4.05% | Stable supportive environment |
What's the current average price per square meter for apartments and houses in Daegu?
As of September 2025, apartment prices in Daegu average ₩9.9 million per square meter in the city center and ₩6.7-8.3 million per square meter in other areas.
The citywide average stands at approximately ₩6.7 million per square meter (roughly $4,646 USD), making Daegu significantly more affordable than Seoul where prices often exceed ₩15 million per square meter.
Premium districts like Suseong-gu command higher prices within this range due to elite schools and superior transport connectivity. Central areas with good amenity access consistently price above the citywide average.
Houses typically trade at similar per-square-meter rates to apartments, though individual property characteristics and land size significantly influence final pricing.
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How have property prices in Daegu changed over the past 12 to 24 months?
Daegu property prices experienced notable volatility over the past 24 months, with a significant decline of approximately 3.9% recorded in 2024.
Despite this recent dip, the longer-term trend remains positive with property values showing an average annual rise of 2% or more since 2023. Over the past five years, Daegu properties have appreciated by approximately 27%.
The 2024 decline resulted from oversupply conditions and reduced buyer demand, but market stabilization began emerging in early 2025. Property prices peaked in 2023 before the correction occurred.
Current data suggests the market has found its floor and is beginning a modest recovery phase, supported by government policy adjustments and renewed infrastructure investment.
What's the current rental yield in Daegu, and how does it compare to other Korean cities?
Gross rental yields in Daegu currently range from 4-5%, which compares favorably to Seoul's typical 2-4% yields.
This yield advantage makes Daegu attractive for rental income investors seeking higher returns than Korea's capital city. The yields are similar to those found in Busan, another major secondary city.
Short-term rental platforms like Airbnb report an average occupancy rate of 56% in Daegu with stable revenue streams. However, overall yields still reflect modest returns relative to total investment outlay.
The combination of lower purchase prices and reasonable rental rates creates this yield advantage, though investors should factor in potential vacancy periods and management costs.
How many new housing units are expected to come onto the Daegu market in the next two to three years?
Major residential developments will add over 1,600 units to Daegu's housing stock between 2025 and 2027.
Key projects include Beomeo 2nd I-Park with 490 units, Sil-dong The Shop contributing 355 units, and Geumho Waterpolis adding 765 units to the market. These developments represent significant new inventory additions.
Developers are accelerating project launches in anticipation of market recovery, with continued completions scheduled through 2027. This managed supply increase aims to meet expected demand growth.
The new supply timeline suggests a steady flow of inventory rather than overwhelming market flooding, which should help maintain price stability during the recovery phase.
What is the current vacancy rate for residential properties in Daegu?
Unsold apartment inventory in Daegu dropped to 9,065 units by April 2025, indicating that vacancy pressure exists but is easing.
| Property Type | Vacancy Status | Market Impact |
|---|---|---|
| New Apartments | 9,065 unsold units | Decreasing pressure |
| Rental Properties | Moderate availability | Stable rental market |
| Premium Units | Faster absorption | Strong demand in top districts |
| Suburban Areas | Higher vacancy | Slower price recovery |
| Central Districts | Lower vacancy | Leading market recovery |
How many property transactions have been recorded in Daegu recently, and is the volume rising or falling?
Transaction volumes in Daegu have shown positive momentum recently, particularly in popular districts, after experiencing a period of stagnant trading activity.
The increase in trading activity signals investor return alongside broader market stabilization. This upturn follows months of reduced transaction volumes during the 2024 market correction.
Popular districts are leading the recovery with notably higher transaction frequency compared to suburban areas. Central locations with good amenities and transport access are seeing the strongest buyer interest.
The improved transaction volume indicates growing confidence among both buyers and sellers that the market has stabilized and is beginning its recovery phase.
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What government policies or housing regulations are likely to affect Daegu's property market in the near future?
Recent government policies focus on stimulating housing demand, reducing excess inventory, and supporting infrastructure investment across secondary cities including Daegu.
Post-election political stability is expected to further energize the property market through consistent policy implementation. The government has introduced measures aimed at encouraging property transactions and supporting market recovery.
Policy initiatives include incentives for first-time buyers, tax adjustments to stimulate trading activity, and continued infrastructure spending that benefits property values. These measures specifically target secondary cities like Daegu to balance regional development.
Regulatory changes are focused on market stabilization rather than restriction, creating a supportive environment for both domestic and foreign property investment in the city.
What are the current mortgage interest rates in Korea, and how are they impacting buyers in Daegu specifically?
Current mortgage interest rates in Korea range from 3.75-4.05% for government-backed loans and approximately 3.96% for new bank mortgages as of August 2025.
The central bank's benchmark policy rate remains stable at 2.5%, providing a supportive backdrop for property buyers. However, rates have moved slightly upward from early 2024 levels in response to broader economic trends.
These higher borrowing costs compared to early 2024 are affecting demand and qualifying thresholds, particularly impacting first-time and leveraged buyers in Daegu. The rate environment remains relatively favorable historically but requires careful financial planning.
Buyers in Daegu benefit from lower property prices that partially offset higher borrowing costs, making the city more accessible than Seoul despite current rate levels.
What's the population growth trend in Daegu, and how is it influencing housing demand?
Daegu's population growth is moderate with stable household formation, though some emigration to Seoul and Busan for employment opportunities has dampened overall housing demand.
1. Young professionals relocating to Seoul for career opportunities2. Families seeking better educational resources in larger cities3. Retirees choosing coastal cities like Busan4. Students leaving for universities in the capital region5. Job seekers following corporate headquarters to SeoulDespite outmigration pressures, Daegu maintains a stable residential base with consistent housing needs. The city's role as a regional hub continues to attract residents from surrounding areas.
Household formation patterns remain steady, supporting baseline housing demand even as population growth moderates. This demographic stability provides a foundation for the property market's recovery.
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.
Which districts in Daegu are seeing the strongest demand, and what are the price differences between them?
Suseong-gu stands out as the highest-demand district in Daegu, commanding premium prices due to elite schools and excellent transport connectivity.
| District | Price Range (₩ million/sqm) | Key Attractions |
|---|---|---|
| Suseong-gu | 8.5-9.9 | Elite schools, transport links |
| Buk-gu (Waterpolis area) | 7.8-8.8 | New development, amenities |
| Central Districts | 7.2-8.5 | Business centers, convenience |
| Jung-gu | 6.8-7.8 | Historical center, accessibility |
| Suburban Areas | 6.7-7.2 | Lower density, family-friendly |
| Outer Districts | 6.7-7.0 | Affordability, future potential |
What's the outlook for infrastructure projects in Daegu that could drive property values, such as new transport links or commercial hubs?
Major infrastructure projects are underway in Daegu, including subway extensions and eco-industrial zone developments that are expected to support property values.
Transit-adjacent areas and redevelopment corridors are likely to benefit most from these infrastructure investments. Subway line expansions will improve connectivity and accessibility for residents.
The eco-industrial zones represent significant commercial development that should create employment opportunities and drive housing demand in nearby residential areas.
These infrastructure improvements position Daegu as an increasingly connected and economically viable city, supporting long-term property value appreciation beyond the current recovery cycle.
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How are foreign buyers and investors currently participating in Daegu's property market?
Foreign buyer participation in Daegu's property market remains accessible with lenient short-term rental regulations and relatively low purchase barriers compared to Seoul.
International investment activity is more moderate than in Seoul or tourist-heavy cities, with most foreign buyers focusing on medium and long-term residential yield strategies rather than speculation.
The combination of affordable prices, decent rental yields, and straightforward purchase processes makes Daegu attractive for value-oriented international investors seeking stable returns.
Foreign buyers benefit from Daegu's lower entry costs while still accessing South Korea's stable legal framework and property rights protections.
It's something we develop in our South Korea property pack.
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.
Daegu's property market presents a compelling opportunity for investors seeking value and yield in South Korea's real estate landscape.
With stabilizing prices, improving transaction volumes, and supportive government policies, the city offers an attractive alternative to Seoul's expensive market while maintaining strong fundamentals for long-term appreciation.
Sources
- Daegu Price Forecasts - BambooRoutes
- Average Apartment Price per Square Meter South Korea - BambooRoutes
- Daegu Property Market Analysis - BambooRoutes
- Daegu Real Estate Market Overview - BambooRoutes
- South Korea Housing Market Forecast - BambooRoutes
- Annual Airbnb Revenue in Daegu - Airbtics
- Reasons to Invest in South Korea Real Estate - RealEstate2C
- South Korea Housing Market Analysis - AInvest
- Daegu Housing Market Update - Maeil Kyungjae
- Korean Housing Policy Update - Chosun Biz