Should you buy property in Jeju Island now?

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

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 Jeju Island. 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 Jeju City. 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 property price trends in Jeju Island by residential, commercial, and land sectors?

Jeju Island's residential market shows average prices of 5 million KRW per square meter as of September 2025, with urban apartments commanding 14 million KRW per pyeong in prime locations.

Residential properties in urban centers like Jeju City and Seogwipo are experiencing weekly price increases of 0.21%, translating to annual growth rates of 3-7%. This growth is driven by continued population influx and remote worker migration to the island. Rural residential properties, however, face stagnation or slight declines due to oversupply and aging demographics.

Commercial property transaction volumes have increased by 9% over the past year, indicating renewed investor interest. However, price appreciation in commercial real estate remains more subdued, particularly in non-prime locations outside the main urban centers. Prime commercial properties in Jeju City center continue to command premium pricing due to limited supply.

Land prices remain relatively stable with slight increases concentrated in areas benefiting from new infrastructure development projects. Rural land faces price corrections due to oversupply, while land parcels near planned development zones show modest appreciation. Coastal land suitable for luxury development maintains premium valuations.

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

How have property prices changed in the short, medium, and long term on Jeju Island?

Short-term trends over the past 12 months show consistent but modest growth in Jeju's urban property markets.

Residential transaction volumes increased 6% annually, while rental rates rose 3% year-over-year in prime locations. Urban centers experienced steady price appreciation, contrasting sharply with rural areas where prices remained flat or declined slightly. The weekly growth rate of 0.21% in apartment prices demonstrates sustained demand momentum.

Medium-term projections for the next 3-5 years indicate annual growth rates of 3-5% in urban zones, with luxury villa segments potentially exceeding 10% compound annual growth rates due to limited supply. Rural and interior areas face continued stagnation or decline unless revitalized by demographic shifts or tourism development initiatives.

Long-term outlook over the next decade suggests top urban and coastal districts could achieve cumulative growth of 15-25%. Jeju City and Seogwipo are expected to maintain their growth trajectory, supported by infrastructure development and lifestyle migration trends. Rural locations may continue stagnating unless significant policy interventions or development projects alter their fundamentals.

These projections assume continued economic stability and tourism growth, with infrastructure development playing a key role in supporting long-term value appreciation.

Which areas of Jeju Island show the strongest growth versus stagnation?

Urban centers dominate Jeju's property growth story, with Jeju City, Seogwipo, and Nohyeong-dong leading appreciation trends.

Jeju City benefits from its administrative center status, attracting government workers, businesses, and remote workers seeking urban amenities. The area shows consistent price growth supported by population influx and infrastructure development. Seogwipo leverages its tourism appeal and coastal location to attract both investors and lifestyle buyers seeking premium properties.

Coastal luxury locations command the highest growth premiums, with waterfront properties and villa developments seeing strong investor demand. These areas benefit from limited supply constraints and high-end tourism development, creating favorable supply-demand dynamics for property appreciation.

Interior and rural regions face significant challenges, with oversupply and aging populations creating downward price pressure. Many rural districts lack the economic drivers necessary to support property values, resulting in stagnation or decline. Areas without tourism potential or infrastructure development prospects struggle to attract new residents or investors.

The contrast between urban/coastal success and rural challenges reflects broader demographic and economic trends affecting the island's development pattern.

How do property prices compare between urban centers and rural areas?

Location Type	Average Price per Sq Ft	Price Trend
Jeju City Urban Core	1.3 million KRW	Modest upward growth
Outside City Center	836,000 KRW	Stable to slight increase
Rural Districts	180,000-500,000 KRW	Flat to declining
Coastal Premium Areas	2+ million KRW	Strong appreciation
Seogwipo Tourist Zone	1.1 million KRW	Steady growth
Interior Mountain Areas	150,000-300,000 KRW	Declining values
Luxury Coastal Villas	3+ million KRW	Premium growth

What are the current rental yields for different property types across Jeju Island?

Rental yields on Jeju Island typically range from 3-5% gross for most property types, with significant variation based on location and seasonality.

Apartments in urban centers like Jeju City offer more stable yields around 3-4%, benefiting from consistent demand from long-term tenants including government workers, business professionals, and students. These properties provide steady cash flow with lower vacancy risks compared to vacation-focused properties.

Vacation properties and coastal villas can achieve yields of 4-6% during peak seasons, but annual returns average 3-5% due to seasonal fluctuations. Summer months and holidays drive premium rental rates, while off-peak periods see significant vacancy increases that impact overall profitability.

Houses suitable for family rentals in suburban areas typically generate yields of 3-4%, with demand driven by families seeking more space than apartments provide. These properties often require higher maintenance costs but offer more stable occupancy than vacation rentals.

Rural properties generally offer lower yields of 2-3% due to limited rental demand and lower rental rates, making them less attractive for investment purposes unless purchased primarily for personal use.

How do occupancy rates and seasonal demand affect rental profitability?

Jeju Island's tourism-driven economy creates significant seasonal variations in rental demand that directly impact property profitability.

Peak season occupancy rates for vacation rentals can reach 80-90% during summer months (June-August) and major holidays, with daily rates commanding premium pricing. However, off-peak occupancy often drops to 20-40%, creating significant vacancy periods that reduce annual yields despite high peak-season rates.

Central urban locations with business and residential demand maintain more stable occupancy rates of 85-95% year-round, as they serve long-term tenants rather than tourists. These properties offer more predictable cash flows but lower peak rental rates compared to vacation properties.

Coastal vacation properties face the highest seasonal volatility, with some properties achieving 95% occupancy in peak months but dropping to near-zero occupancy during winter. Successful vacation rental strategies require careful pricing optimization and marketing to extend the effective rental season.

Properties targeting the growing remote worker and digital nomad market show promise for extending traditional seasonal patterns, as these tenants often seek medium-term stays outside peak tourist periods.

What government regulations currently affect property investment in Jeju Island?

Jeju Island faces increasingly restrictive regulations aimed at managing speculation and foreign investment as of September 2025.

Foreign investment restrictions have tightened significantly, with non-resident buyers facing substantial limitations on property purchases, particularly for land acquisitions. These measures target speculative investment that local officials believe contributes to housing affordability challenges for residents.

Property tax rates and transfer taxes have increased to discourage domestic speculation, with higher rates applied to commercial properties and multi-home ownership. These tax policies aim to cool speculative demand while generating revenue for local infrastructure development.

As a Special Self-Governing Province, Jeju occasionally offers unique investment incentives for specific development types, but overall regulatory oversight has become more stringent than in other Korean provinces. Compliance requirements for foreign investors include additional documentation and approval processes.

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

What infrastructure and development projects are impacting Jeju property values?

Ongoing and planned infrastructure development continues to support Jeju's long-term property value outlook across multiple sectors.

Public transit improvements, including expanded bus networks and potential light rail development, are enhancing connectivity between urban centers and previously isolated areas. These transportation upgrades make suburban and coastal properties more accessible, supporting value appreciation in connected zones.

New expressway construction and road improvements are reducing travel times across the island, making rural properties more viable for residents working in urban centers. Infrastructure connectivity often translates directly into property value increases in affected areas.

Tourism facility development, including new attractions, golf courses, and entertainment venues, creates demand for surrounding residential and commercial properties. These projects often trigger speculative investment in nearby areas before completion.

A potential second airport remains under discussion, which could significantly impact property values island-wide by improving accessibility and supporting tourism growth. Properties near proposed airport locations show speculative appreciation based on development expectations.

How does Jeju's property market compare to other Korean cities and islands?

Jeju Island occupies a unique position in Korea's property market, offering higher prices than most regional cities but remaining more affordable than Seoul.

Affordability-wise, Jeju sits between major metropolitan areas like Seoul or Busan and smaller regional cities, with average prices reflecting its special administrative status and tourism economy. Urban Jeju properties cost significantly more than comparable properties in most provincial cities but offer lifestyle benefits that justify premium pricing.

Growth potential in urban Jeju tracks just behind Seoul in annual price appreciation rates, outperforming most Korean islands and regional markets. The combination of lifestyle appeal, infrastructure development, and limited land supply creates favorable dynamics for sustained growth.

Compared to other Korean islands, Jeju benefits from superior infrastructure, direct flight connections, and established tourism industry that support property demand. Most other Korean islands lack Jeju's economic diversification and development level.

Jeju's property market shows resilience during economic downturns due to its tourism base and lifestyle appeal, making it less volatile than purely industrial or business-focused regional markets throughout Korea.

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 budget ranges make sense for different investment goals on Jeju Island?

Budget requirements for Jeju Island property investment vary significantly based on investment strategy and location preferences.

Living purposes typically require 250-800 million KRW for suitable apartments or family homes in urban areas with good amenities and transportation access. This budget range provides access to quality properties in Jeju City or Seogwipo with adequate space for permanent residence.

Rental investment strategies work well with budgets from 180 million KRW for smaller vacation rental units up to 2+ billion KRW for luxury coastal villas. Higher-budget properties generally offer better rental yields and appreciation potential, but require more sophisticated management.

Resale-focused investment typically requires 300 million to 1.5 billion KRW concentrated in prime urban or coastal locations with strong appreciation prospects. These properties benefit from limited supply and strong demand fundamentals that support value growth.

Commercial investment requires higher budgets starting around 500 million KRW for smaller retail spaces, with prime commercial properties often exceeding 1-2 billion KRW. Commercial success depends heavily on location and local market expertise.

Which property types are most suitable for each investment strategy right now?

Property type selection should align closely with investment objectives and risk tolerance on Jeju Island.

1. **Condominiums and apartments** work best for urban living and stable long-term rental yields, suitable for both buy-to-let investors and lifestyle buyers seeking predictable returns.2. **Luxury coastal villas** offer the highest resale and rental upside potential but require significant capital and clear tourism focus for success.3. **Commercial properties** provide good long-term investment opportunities in growing city centers, though yields vary significantly and require local market expertise.4. **Vacation rental properties** in tourist zones can generate strong seasonal returns but require active management and tolerance for occupancy fluctuations.5. **Land parcels** are suitable only when tied to upcoming development or infrastructure projects, otherwise carrying significant risks in rural zones.

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

Where should buyers position themselves for maximum returns or lifestyle value?

Strategic positioning for optimal results requires targeting urban centers and coastal areas while avoiding rural properties without development prospects.

Maximizing financial returns means focusing on Jeju City and Seogwipo urban centers, particularly condominiums and vacation apartments that offer steady cash flow and long-term appreciation. Properties near infrastructure improvements show enhanced growth prospects due to improved accessibility and development spillover effects.

Lifestyle value optimization suggests targeting well-connected areas with strong amenities, proximity to cultural sites, recreational facilities, and natural attractions. These properties often command premium pricing but provide superior living experiences that justify higher costs.

Portfolio diversification across urban apartments and coastal vacation properties can balance steady rental income with growth potential, though this requires larger capital commitments and more sophisticated management approaches.

Risk management involves avoiding rural and interior properties unless purchased solely for personal use, as these areas face continued demographic and economic challenges that suppress property values.

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. Jeju Island Price Forecasts
2. House Price Jeju Island
3. Jeju Island Real Estate Forecasts
4. South Korea Housing Market Forecast
5. CEIC Data - Land Price Index Jeju
6. Global Property Guide - South Korea Price History
7. Global Banking and Finance - South Korea Real Estate Trends
8. Housing Statistics Portal Korea