Should you buy property in Busan now?

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 Seoul, Busan, 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 current property prices in Busan by area and property type?

As of September 2025, the average apartment price in Busan stands at 12.14 million KRW per pyeong (3.3㎡).

Premium waterfront districts like Haeundae and Marine City command over 30 million KRW per pyeong for select properties. These areas maintain their price premium due to ocean views, modern amenities, and strong infrastructure.

Western districts have experienced greater price pressure, with older apartments (20+ years) and villas in non-central areas declining 15-20% from their peak values. Large apartments over 100㎡ in oversupplied districts are now heavily discounted compared to their pandemic-era highs.

For rental prices, city center 1BR apartments average 691,666 KRW per month, while similar units outside the center cost around 433,333 KRW monthly. Purchase prices per square meter range from 6.2-6.6 million KRW in city center locations to 3.3-3.6 million KRW in outer areas.

A standard 84㎡ apartment in Busan averages approximately 422.3 million KRW based on current market conditions.

How have prices changed in the past 12 months compared to the past 3 to 5 years?

Busan property prices declined 1.9% year-on-year as of June 2025, following a 5% decline in 2024.

Over the past five years, Busan has experienced a 51.4% cumulative price gain, though most of this appreciation occurred during the 2021-2022 surge before the correction began. The market has shifted dramatically from a historic seller's market to a definitive buyer's market.

Prices are now down nearly 50% from their 2022-2023 peak levels in many areas. This represents one of the most significant corrections in Busan's recent property history. The pandemic-era boom created unsustainable price levels that are now being corrected through market forces.

The contrast between the five-year cumulative gain and recent declines highlights how concentrated the price appreciation was during the pandemic period, followed by a sharp and sustained correction.

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

What is the short-term outlook for prices in Busan over the next 6 to 12 months?

The short-term outlook for Busan property prices remains challenging through 2026.

Ongoing market softness and weak buyer demand are expected to persist, especially outside premium areas. Prices are forecast to remain flat or continue declining slightly over the next 6-12 months. Transaction volumes remain well below pre-pandemic averages, indicating continued market weakness.

The oversupply of unsold units, totaling over 4,700 as of April 2025, particularly in western districts, limits any likelihood of a quick market rebound. This inventory overhang will continue to pressure prices downward until absorption improves significantly.

Premium waterfront areas may show more stability, but even these segments are unlikely to see meaningful price appreciation in the near term. The buyer's market conditions favor those looking to purchase, as sellers remain motivated to close deals.

Market recovery will depend on improved economic conditions and demographic trends, neither of which show signs of meaningful improvement in the short term.

What are the medium-term projections for property values over the next 3 to 5 years?

Most analysts predict continued stagnation or moderate further declines in Busan property values through 2028-2030.

Broad-based appreciation across the market is not expected unless significant new stimulus measures are introduced or population decline trends reverse. The medium-term outlook remains challenged by structural economic and demographic headwinds.

However, some segments may outperform the broader market. Luxury waterfront properties in Haeundae and Marine City may show resilience due to their unique positioning and limited supply. Select redevelopment zones could also see above-average performance as urban renewal projects progress.

Economic headwinds including rapid aging, out-migration, and weak regional economic growth will likely keep the overall Busan property market soft through the medium term. These fundamental challenges require structural solutions that extend beyond typical market cycles.

Investors should focus on specific districts and property types rather than expecting market-wide appreciation during this period.

What is the long-term potential for Busan real estate considering demographics, infrastructure, and economic trends?

Long-term demographic decline poses the greatest risk to Busan real estate values beyond 2030.

Out-migration and rapid population aging are reducing buyer pools and household formation rates. These demographic headwinds create fundamental demand challenges that will persist without significant policy interventions or economic revitalization.

High levels of unsold and aging inventory add continued downside pressure, especially in non-core districts. The oversupply situation may take years to resolve given current demographic trends.

However, major infrastructure projects offer selective opportunities for outperformance. The North Port redevelopment, subway system expansion, and Eco Delta City development could drive growth in specific districts. Busan's positioning as a logistics and technology hub may also support certain property segments.

Long-term success will likely concentrate in premium locations and areas benefiting from infrastructure investment, while peripheral and older districts may face continued challenges. Investors should focus on districts with clear catalysts for future development.

Which neighborhoods are currently considered undervalued or poised for growth?

Geumjeong-gu and Sasang-gu offer the lowest entry prices and may benefit from future infrastructure and redevelopment projects.

These districts present higher risk investments that require careful local market analysis. They appeal to value-seeking buyers willing to accept longer investment horizons and potential volatility. Future subway connections and urban renewal projects could drive appreciation in these areas.

Haeundae (especially Marine City), Suyeong, and Nam-gu demonstrate steady buyer demand, price resilience, and potential for long-term value preservation. These established premium districts offer more stability for conservative investors.

Redevelopment and urban renewal districts across Yeonje-gu, new projects in Haeundae, Jung-gu, and Saha-gu may see above-average appreciation. These areas benefit from planned infrastructure improvements and zoning changes.

New commercial districts and areas near upcoming infrastructure projects represent emerging opportunities, though they require thorough due diligence to assess development timelines and completion risks.

How do yields compare between different property types, such as apartments, villas, or commercial units?

Property Type	Typical Yield	Key Locations
Long-term Apartment Rentals	Under 2%	Seomyeon, Sasang, Nampo
Short-term Rentals (Airbnb)	3-5%+	Haeundae, Gwangalli
Officetels	3-5%	City center, business districts
University Area Rentals	2-3%	Near major universities
Co-living Units	3-5%	Central districts
Tourist Area Properties	4-6% (seasonal)	Coastal areas
Villas (Older Properties)	2-3%	Residential districts

What are the average rental returns by area and property type right now?

Long-term apartment rental yields remain low across Busan, typically under 2% for most standard residential properties.

The highest conventional rental yields are found in central districts including Seomyeon, Sasang, Nampo, and Haeundae, as well as areas near universities where student demand provides steady occupancy.

Short-term rentals through platforms like Airbnb in tourist areas can offer better returns. Properties in Haeundae and Gwangalli can achieve gross yields of 3-5% or higher, especially during peak tourist seasons from June through August.

Officetels and co-living units can generate yields of 3-5% but require more active operational management. These properties appeal to young professionals and students seeking flexible housing arrangements.

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

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.

How easy is it to resell different types of properties in Busan, and what is the average resale timeline?

Resale liquidity varies significantly by location and property type in Busan's current market conditions.

Premium apartments in Haeundae and Marine City maintain reasonable liquidity, though even these properties may take longer to sell than during peak market periods. These locations benefit from consistent buyer interest and established market demand.

Older properties and non-premium stock in oversupplied or depopulating districts face the longest resale timelines, potentially remaining on the market for 3-6 months or longer depending on condition and area. Sellers often need to offer discounts to clear inventory.

Properties in western districts and areas with high concentrations of unsold units experience the most challenging resale conditions. Large apartments and older buildings in these areas may require substantial price reductions to attract buyers.

Newly built or fully renovated units in premium locations offer the best resale prospects, while older blocks in oversupplied districts should be avoided unless targeting specific redevelopment upside opportunities.

What budget ranges offer the best opportunities for buyers today, both for living and for investment?

The 300-400 million KRW budget range offers the best value opportunities in Busan's current market.

1. **Mid-sized newly built apartments** in established good districts appeal to first-time buyers and young families2. **Value-focused properties** with renovation potential in emerging neighborhoods 3. **Well-located older apartments** that have been properly maintained and updated4. **Properties near future infrastructure developments** at current discounted prices5. **Apartments in stable districts** with good amenities and transport connections

For premium buyers, properties over 30 million KRW per pyeong in Marine City and Haeundae appeal to lifestyle buyers and foreign investors focused on capital preservation and luxury amenities.

Budget-conscious buyers can explore Geumjeong-gu, Sasang-gu, and fringe neighborhoods for the lowest entry costs, though these areas come with slower appreciation prospects and higher risk.

Investment-focused buyers should prioritize properties that can generate rental income, particularly in tourist areas or near universities where demand remains more stable.

What specific property types are most attractive depending on whether you want to live, rent out, or resell?

For primary residence purposes, newer apartments in Haeundae, Suyeong, or Yeonje offer the best combination of quality, amenities, and stable long-term value.

These districts provide good infrastructure, schools, and lifestyle amenities that maintain their appeal over time. Villas or older apartments are only suitable if pricing is substantially below market and buyers plan personal renovation projects.

For rental income generation, smaller units near city center, universities, or coastal tourist zones offer slightly higher yields and better occupancy rates. Officetels or properties approved for short-term rentals suit investors willing to provide more active management.

For resale investment strategies, focus on newly built or fully renovated units in premium locations with established buyer demand. Avoid large units and old blocks in western or oversupplied districts unless specifically targeting redevelopment upside potential.

Short-term rental properties in tourist hotspots like Haeundae and Gwangalli can provide better returns but require active management and compliance with local regulations.

Given current conditions, where should you position yourself in Busan's market if you plan to buy now?

Cautious buyers should focus on stable, amenity-rich districts like Haeundae, Suyeong, and Yeonje while seeking price discounts or newer units.

These established areas offer the best protection against further market declines while providing good quality of life for residents. Buyers should negotiate aggressively given current market conditions and seller motivation.

More aggressive value-seeking buyers might explore affordable districts like Geumjeong and Sasang with upside potential if infrastructure and population trends stabilize. However, these represent speculative investments requiring careful risk assessment.

Yield-focused investors should lean toward short-term rental options in tourist hotspots or city-center co-living and officetel properties. These strategies can generate higher returns but require more active management.

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.

Sources

1. Busan Price Forecasts
2. Busan Property Market Analysis
3. Numbeo Property Investment Data
4. Chosun Business Real Estate Report
5. Busan Real Estate Risks 2025
6. South Korea Housing Market Trends
7. Busan Government Press Release
8. InvestAsian Busan Property Guide