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Jeju Island's property market in September 2025 presents a unique investment landscape with moderate growth and regional variations.
The market shows modest residential price increases averaging 5 million KRW per square meter, while commercial properties face softer demand due to tourism fluctuations. Rental yields remain attractive in urban centers, though foreign buyer activity has cooled following new government regulations.
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Jeju Island's property market shows steady residential growth with prices averaging 5 million KRW per square meter, while commercial rents remain among Korea's lowest at 13,000 KRW per square meter monthly.
Urban areas like Jeju City and Seogwipo lead price appreciation, but rural properties face oversupply challenges and tourism-related volatility affects commercial segments.
| Market Segment | Current Status | Key Metrics |
|---|---|---|
| Residential Prices | Modest Growth | 5M KRW/m², +0.21% weekly in apartments |
| Commercial Rents | Soft Demand | 13,000 KRW/m² monthly (vs Seoul 49,000) |
| Rental Yields | Attractive Urban | 669K KRW/month (1BR), +3% YoY |
| Foreign Investment | Cooling Down | Restricted by 2025 anti-speculation policies |
| Transaction Volume | Increasing | +6% YoY residential, +9% apartments |
| Growth Areas | Urban Centers | Jeju City, Seogwipo, airport zones |
| Risk Factors | Tourism Dependent | Rural oversupply, regulatory changes |
What are the recent price trends for residential and commercial properties in Jeju Island?
Jeju Island's residential property market shows steady upward momentum as of September 2025.
Residential properties average around 5 million KRW per square meter, with apartments experiencing weekly price increases of 0.21%. Urban centers including Jeju City, Seogwipo, and Nohyeong-dong demonstrate the strongest growth patterns in the residential sector.
Commercial properties tell a different story with significantly softer market conditions. Commercial rents average approximately 13,000 KRW per square meter monthly in the third quarter of 2024, representing some of the lowest commercial rates in South Korea. This compares unfavorably to Seoul's commercial rents of 49,000 KRW per square meter.
The coastal and luxury residential segments have shown strong growth in recent years, while rural and interior properties have stabilized or experienced mild declines due to oversupply conditions and reduced speculative activity.
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How do property prices in Jeju compare to other major Korean cities right now?
| City | Price per m² (KRW, 2025) | Year-on-Year Change |
|---|---|---|
| Seoul | 13,396,000 | +3.6% |
| Busan | 6,690,000 | -1.9% |
| Gwangju | 6,003,000 | -1.1% |
| Jeju Island | 5,000,000 | +3-7% (urban/coastal) |
| Daegu | 4,800,000 | +1.2% |
| Incheon | 7,200,000 | +2.1% |
| Ulsan | 5,400,000 | -0.8% |
What's the current rental yield in Jeju for apartments, houses, and commercial units?
Jeju Island's rental market offers attractive yields, particularly in urban apartment segments.
Average apartment rents in Jeju City centers command 669,000 KRW monthly for one-bedroom units and 1.4 million KRW monthly for three-bedroom apartments. These rental rates have increased approximately 3% year-on-year, indicating healthy rental demand in prime locations.
Rental yields prove attractive relative to the current price stability in the market. Buy-to-let investment profitability has improved with the combination of modest price growth and steady rental income increases, making Jeju Island an appealing option for income-focused investors.
Commercial rental yields present a mixed picture with higher vacancy rates putting downward pressure on landlords. The tourism-dependent nature of commercial properties means yields fluctuate significantly based on seasonal demand and overall visitor numbers to the island.
How has demand from foreign buyers and investors changed over the past year?
Foreign investor demand in Jeju Island has cooled significantly throughout 2025.
New anti-speculation policies introduced in 2025 specifically target foreign speculative activity, with particular focus on Chinese buyers who previously represented a substantial portion of foreign investment. These restrictions have effectively reduced rapid price acceleration driven by overseas capital.
The market has shifted toward being driven more by local end-user demand and lifestyle buyers rather than speculative foreign investment. This represents a fundamental change in market dynamics compared to previous years when foreign capital was a major price driver.
Domestic buyers now dominate transaction activity, seeking properties for personal use, retirement, or long-term investment rather than short-term speculation. This shift toward local demand creates more sustainable market conditions but reduces the rapid price appreciation seen in previous cycles.
What new government regulations or zoning laws are affecting property investment in Jeju?
Stricter anti-speculation controls implemented since 2024 have significantly cooled speculative activity in Jeju Island's property market.
The government has introduced targeted restrictions limiting foreign buyers' ability to purchase property for speculative purposes. These measures specifically address concerns about rapid price inflation driven by overseas investment, particularly from Chinese buyers who previously dominated foreign purchasing activity.
Government-backed development zones support large infrastructure projects, including the planned second airport, fostering sustainable growth over speculative price spikes. These developments are designed to create long-term value through improved amenities and connectivity rather than short-term speculation.
Zoning laws now favor planned community developments in urban areas while restricting excessive development in rural regions. This approach aims to prevent oversupply in less desirable locations while concentrating growth in areas with strong infrastructure support.
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How much new housing or commercial development is planned or under construction on the island?
Urban developments and new planned communities are driving construction activity in select areas of Jeju Island.
The most significant development activity centers around the planned second airport, with land prices in surrounding areas increasing by over 40% in some locations. This infrastructure project has spurred substantial residential and commercial development in previously undeveloped zones.
Jeju City, Seogwipo, and other urban centers continue to see steady residential construction activity to meet growing local demand. These projects focus on modern apartment complexes and mixed-use developments that cater to both residents and the tourism industry.
Rural and interior development has stagnated or contracted significantly. Developers are avoiding these areas due to oversupply concerns and limited demand from both local and foreign buyers.
Tourist-facing commercial projects maintain momentum in prime coastal and urban locations, though the pace has moderated compared to the speculative building boom of previous years.
What are the average transaction volumes and how have they shifted month to month?
Transaction volumes in Jeju Island's property market show positive momentum as of September 2025.
Residential property transactions have increased 6% year-on-year, while apartment transactions specifically have risen 9% year-on-year. This uptick reflects market stabilization following the implementation of anti-speculation measures and renewed confidence among both buyers and investors.
The increase in transaction activity indicates that the market has absorbed the regulatory changes introduced in 2024 and early 2025. Buyers are becoming more comfortable with the new regulatory environment and its impact on market stability.
Monthly variations show seasonal patterns typical of resort markets, with higher activity during spring and summer months when tourism and relocation activity peaks. Winter months typically see reduced transaction volumes, particularly for vacation and investment properties.
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Which areas of Jeju are seeing the fastest growth in property values?
Jeju City Center leads property value appreciation across the island.
Seogwipo and Nohyeong-dong demonstrate the highest appreciation rates among established urban areas, benefiting from concentrated amenities, infrastructure, and local demand. These areas attract both residents and investors seeking stable, liquid property investments.
Areas near the planned second airport experience the fastest land price increases, with some locations seeing gains exceeding 40%. This growth reflects investor anticipation of improved connectivity and economic development following the airport's completion.
New development zones designated by government urban planning initiatives show strong price momentum. These areas benefit from modern infrastructure, planned amenities, and regulatory support for sustainable development.
Coastal premium locations continue to command price appreciation, particularly those with tourism infrastructure and scenic value. However, growth rates have moderated from the speculative peaks of previous years.
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What's the current vacancy rate for residential and commercial properties in Jeju?
Vacancy rates in Jeju Island vary significantly between property types and locations.
Commercial property vacancies have increased, especially in tourist districts, reflecting lower foot traffic and reduced consumer spending following tourism declines in early 2025. Retail spaces and restaurants in tourist-heavy areas face particular challenges with occupancy rates.
Residential vacancy remains low in urban centers like Jeju City and Seogwipo, where local demand supports occupancy levels. These areas benefit from year-round residents, government workers, and service industry employees who provide stable rental demand.
Rural and interior regions experience higher residential vacancy rates tied to population migration toward urban centers. Young people and families increasingly prefer urban locations with better amenities, employment opportunities, and infrastructure.
Short-term rental properties face fluctuating vacancy depending on tourism patterns, with significant seasonal variations affecting overall occupancy rates throughout the year.
How are tourism numbers and infrastructure projects influencing the real estate market?
Tourism numbers dropped significantly in early 2025, creating substantial impact on Jeju Island's property market.
The tourism decline affects both commercial properties and short-term rental demand. Hotels, restaurants, retail spaces, and vacation rentals all experience reduced occupancy and revenue, putting downward pressure on commercial property values and rental rates.
Major infrastructure projects, particularly the planned second airport, support optimism for long-term property value growth. This development promises improved connectivity, increased tourist capacity, and economic development that should benefit property values in serviced urban and resort areas.
Infrastructure improvements in urban centers, including transportation upgrades and utility enhancements, create positive momentum for residential property values. These investments make Jeju Island more attractive for permanent residents and long-term investors.
The government's focus on sustainable tourism development rather than rapid expansion helps create more stable market conditions, reducing the boom-bust cycles that previously characterized tourism-dependent property segments.
What financing options and mortgage rates are currently available for buyers in Jeju?
Mortgage financing in Jeju Island benefits from relatively stable interest rate conditions as of September 2025.
The Bank of Korea's base rate of 3.0% provides the foundation for mortgage pricing, creating relatively favorable financing conditions for qualified buyers. This rate environment supports both residential purchases and investment property financing.
Korean banks offer standard mortgage products for both domestic and qualified foreign buyers, though foreign buyers face additional documentation requirements and potentially higher down payment thresholds following recent regulatory changes.
Loan-to-value ratios vary based on property type and buyer profile, with residential owner-occupiers typically receiving more favorable terms than investment property purchases. Commercial property financing remains available but with more conservative lending criteria.
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What risks should investors watch for in Jeju's property market over the next 12–24 months?
Investors in Jeju Island face several key risks over the next 12–24 months.
Exposure to tourism demand changes represents the primary risk factor, particularly regarding international visitor arrivals. Property values and rental income in tourism-dependent areas remain vulnerable to fluctuations in visitor numbers, seasonal patterns, and broader economic conditions affecting travel.
Oversupply risk in rural and interior areas could lead to continued price stagnation outside urban and prime coastal zones. Properties in these locations may struggle to maintain value or generate rental income as demand concentrates in urban centers.
Demographic headwinds including population aging and urban migration patterns limit broad-based property value growth across the island. These trends favor urban properties while creating challenges for rural and remote locations.
Ongoing regulatory uncertainty, especially regarding foreign investment rules and anti-speculation measures, could affect market liquidity and buyer confidence. Future policy changes may further restrict foreign participation or modify taxation on property investment.
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.
Jeju Island's property market in September 2025 presents a balanced investment environment with selective opportunities in urban centers and infrastructure-supported areas.
While tourism-dependent segments face challenges, local demand and government infrastructure investments provide stability for long-term property investment in prime locations.
Sources
- Jeju Island Price Forecasts - BambooRoutes
- House Price Jeju Island - BambooRoutes
- South Korea Rental Price Commercial Buildings - Statista
- South Korea Property Price History - Global Property Guide
- Korea Tourism Market Analysis - Chosun Ilbo
- South Korea Real Estate Guide - InvestAsian
- South Korea Housing Market Forecast - BambooRoutes
- Jeju Commercial Land Price Index - CEIC Data