Are coastal towns good investments in South Korea?

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

Everything you need to know before buying real estate is included in our South Korea Property 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 South Korea. 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 Gangneung. 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's the current purchase price per square meter for coastal properties in South Korea?

Coastal properties in South Korea currently average KRW 6.7 million per square meter, which equals approximately USD 4,630 as of September 2025.

This pricing represents a broad average across different coastal towns, with significant variations based on specific location and local amenities. Popular tourist destinations like Gangneung and Sokcho typically range from KRW 4-8 million per square meter, while more remote coastal areas can be found for KRW 3-5 million per square meter.

The coastal property market shows notable price differences depending on proximity to major cities, tourism infrastructure, and local economic conditions. Properties within walking distance of beaches or major tourist attractions command premium prices, often 20-30% higher than the coastal average.

Apartment complexes in established coastal developments typically sell for KRW 5-9 million per square meter, while older standalone houses can be found for KRW 3-6 million per square meter. New construction projects with modern amenities push prices toward the higher end of these ranges.

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

How do coastal property prices compare to Seoul and Busan?

Coastal properties are significantly more affordable than Seoul, costing roughly half the price per square meter.

Seoul properties average KRW 13.4 million per square meter (USD 9,250), making coastal areas approximately 50% cheaper for equivalent property types. This price difference represents substantial savings for investors looking to enter the South Korean property market at lower capital requirements.

Busan, as South Korea's primary coastal metropolis, bridges the gap between coastal towns and Seoul pricing. Busan properties range from KRW 6.7-12.1 million per square meter (USD 4,630-8,700), depending on district and proximity to the city center. Central Busan districts like Haeundae command prices similar to coastal averages, while downtown commercial areas approach Seoul pricing levels.

The price differential creates distinct investment opportunities across these markets. Seoul offers stronger capital appreciation potential but requires higher initial investment, while coastal towns provide easier market entry with focus on rental yields rather than capital gains.

Transaction volumes in coastal markets are typically 30-50% lower than Seoul, which can impact liquidity but also reduces speculative pressure on prices.

What rental yields can investors expect from coastal properties?

Coastal apartments and houses in South Korea typically generate annual rental yields of 3-5%.

This yield range varies considerably based on location and property type. Tourist-focused towns like Sokcho and Gangneung can achieve yields of 5-7% during peak seasons, while more remote coastal areas may only reach 2-4% annually. Properties designed for short-term vacation rentals generally outperform long-term residential rentals in these markets.

Busan offers more stable yields around 4-5% annually, similar to Seoul's average of 4.3%, due to its larger residential population and diverse economy. The city's mix of business travelers, students, and residents creates more consistent rental demand compared to purely tourism-dependent coastal towns.

Seasonal variations significantly impact coastal rental yields. Peak summer months and major festivals can generate monthly returns 2-3 times higher than off-season periods, making average annual calculations particularly important for investment planning.

Properties within 500 meters of beaches or major tourist attractions typically achieve yields 1-2 percentage points higher than similar properties further inland, justifying the premium purchase prices in prime coastal locations.

How do short-term rentals compare to long-term rentals in coastal areas?

Short-term rental profits from tourists can be 20-40% higher than long-term rentals during peak seasons, but with significantly more volatility.

Major coastal tourist destinations like Busan, Sokcho, and Gangneung see substantial spikes in short-term rental demand during summer months, major holidays, and local festivals. Daily rates during these periods can reach KRW 100,000-300,000 for well-located apartments, compared to monthly long-term rates of KRW 800,000-1,500,000.

Long-term rental demand from local residents provides more stable but lower returns. These markets depend heavily on local employment opportunities, which can be limited in smaller coastal towns outside of tourism and fishing industries. Busan offers the strongest long-term rental market due to its diverse economy and student population.

Operating costs for short-term rentals are notably higher, including cleaning services, higher utility usage, property management fees, and platform commissions. These expenses can consume 20-30% of gross rental income compared to 5-10% for long-term rentals.

Seasonal occupancy rates for short-term rentals in coastal towns typically range from 60-90% during peak months to 10-30% during off-season, making cash flow planning crucial for investors relying on this rental strategy.

What population trends affect coastal town property demand?

Most South Korean coastal towns have experienced population decline over the past decade due to urban migration to Seoul and other metropolitan areas.

The national trend shows young people leaving coastal communities for education and employment opportunities in major cities. Towns with populations under 50,000 have seen annual population decreases of 1-3%, directly impacting long-term rental demand and property appreciation potential.

Busan represents a notable exception with its large urban population, though even this major coastal city faces aging demographics and gradual population decline. The city's population peaked around 2005 and has slowly decreased since, though it remains economically diverse enough to maintain property demand.

Coastal towns with strong tourism infrastructure or government investment projects have achieved population stabilization or modest growth. Gangneung benefited from 2018 Winter Olympics infrastructure and continues to attract residents due to improved transportation connections to Seoul.

The aging population trend in coastal areas creates specific rental market dynamics, with increased demand for accessible housing and healthcare proximity, but reduced demand for family-sized properties as younger generations migrate to cities.

How strong is tourism growth in coastal destinations?

South Korea's major coastal towns attract millions of visitors annually, with tourism numbers rising consistently over the past five years.

Busan leads coastal tourism with 3-4 million domestic visitors and 1-2 million international tourists each year. The city benefits from its international airport, cruise ship terminals, and major cultural attractions, creating year-round visitor flow that supports short-term rental investments.

Smaller coastal destinations like Sokcho and Gangneung experience more seasonal tourism patterns but show strong growth trends. These towns benefit from proximity to national parks, winter sports facilities, and cultural festivals that drive specific high-demand periods throughout the year.

Post-pandemic recovery has been particularly strong in domestic tourism, with South Koreans increasingly choosing coastal destinations for weekend getaways and longer holidays. This trend has supported rental demand and property values in well-positioned coastal markets.

Government tourism promotion initiatives and infrastructure investments continue to support visitor growth, particularly in regions designated as special tourism zones. These areas receive additional marketing support and development funding that can positively impact local property markets.

What government infrastructure investment supports coastal areas?

The South Korean government continues significant investment in coastal infrastructure and transport upgrades across multiple regions.

High-speed rail connections have been expanded to serve major coastal destinations, with the KTX line to Gangneung reducing travel time from Seoul to under 2 hours. These transportation improvements directly support both tourism and residential appeal for coastal properties.

Harbor and port facility upgrades in cities like Busan and Incheon support economic diversification and job creation. These projects help maintain local employment opportunities that support long-term rental demand and community stability.

Regional development programs provide funding for tourism infrastructure, coastal protection measures, and urban renewal projects in designated coastal zones. Towns receiving these investments typically see property value stabilization or growth during project periods.

Climate resilience investments include coastal defense systems, flood management infrastructure, and disaster preparedness measures. While these protect property values, they also indicate government recognition of climate risks in coastal areas.

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 vulnerable are coastal towns to climate risks?

South Korean coastal towns face moderate to high climate risks, including rising sea levels, typhoons, and localized flooding during severe weather events.

Typhoon season typically occurs between June and October, with major storms potentially causing property damage and disrupting tourism. Coastal properties in low-lying areas face higher insurance costs and potential value impacts from repeated weather events.

Rising sea levels pose long-term risks to beachfront and near-shore properties, particularly in areas without adequate coastal protection. The government has invested in sea walls and coastal defense systems in major towns, but smaller communities may have limited protection.

Flooding risks vary significantly by location, with some coastal areas experiencing drainage issues during heavy rainfall periods. Properties in flood-prone zones may face restrictions on development or insurance requirements that impact investment returns.

Climate resilience measures are increasingly factored into property valuations, with well-protected properties maintaining better long-term value prospects. Investors should consider elevation, flood history, and local protection infrastructure when evaluating coastal properties.

What are the property taxes and transaction costs for coastal investments?

Transaction costs for coastal property purchases range from 3.6% to 8.1% of the property purchase price.

Cost Component	Rate/Amount	Applied To
Acquisition Tax	1-3% of property value	All property purchases
Registration Tax	0.6-2% of property value	Property title registration
Stamp Tax	0.15-0.35% of property value	Contract documentation
Legal Fees	0.5-1% of property value	Professional services
Real Estate Agent	0.5-0.9% of property value	Brokerage services
Annual Property Tax	0.1-0.6% of assessed value	Ongoing ownership costs
Local Surcharges	Variable additional fees	Tourist zone properties

Foreign ownership faces additional restrictions and requirements. Non-resident buyers must report purchases over certain thresholds and may face higher mortgage interest rates of 5-7% compared to 3-5% for Korean citizens.

Some coastal regions have special restrictions or reporting requirements for foreign property ownership, particularly near military installations or in designated security zones.

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

How quickly can coastal properties be resold and at what appreciation?

Coastal properties typically require 6-18 months to resell, with faster turnover in established tourist destinations.

Well-located properties in major coastal cities like Busan generally sell within 6-12 months, while properties in smaller towns or less desirable locations may require 12-18 months to find buyers. Market liquidity is generally lower than Seoul, where properties average 3-9 months to sell.

Property appreciation rates in coastal markets are modest, typically ranging from flat to 3% annually. Major coastal cities like Busan may achieve 2-4% annual appreciation, while smaller towns often see flat or minimal growth outside of specific infrastructure development periods.

Seoul properties historically appreciate 2-5% annually, making coastal markets less attractive for capital gains strategies. However, the combination of lower purchase prices and rental yields can still provide competitive total returns for investors.

Market timing significantly impacts resale success in coastal areas. Properties listed during peak tourism seasons or local festivals typically attract more buyer interest and achieve better prices than off-season listings.

What local industries support coastal economies beyond tourism?

Coastal town economies rely on fishing, shipping, light manufacturing, and port logistics as primary industries beyond tourism.

1. **Fishing and Seafood Processing** - Traditional industry providing steady employment but facing long-term decline due to environmental factors and international competition2. **Port and Shipping Operations** - Major coastal cities like Busan serve as international trade hubs with stable logistics employment3. **Light Manufacturing** - Textile, electronics assembly, and food processing plants in larger coastal towns4. **Education Sector** - Universities and technical schools in cities like Busan provide stable employment and rental demand5. **Financial Services** - Regional banking and insurance operations concentrated in major coastal business centers

Industry stability varies significantly between major coastal cities and smaller towns. Busan benefits from economic diversification with strong finance, education, and trade sectors, while smaller coastal communities depend more heavily on seasonal tourism and traditional industries.

Government initiatives to promote technology sectors and startup ecosystems in coastal cities aim to attract younger populations and diversify local economies. These efforts show mixed results but indicate policy support for coastal economic development.

Employment opportunities outside tourism are crucial for long-term rental demand and property value stability. Towns with diverse economic bases typically offer better investment prospects than those dependent solely on seasonal tourism revenue.

Which coastal towns offer the best investment combination?

Busan, Gangneung, and Sokcho represent the strongest coastal investment opportunities based on affordability, rental yields, and growth potential.

**Busan** leads coastal investment prospects due to its economic diversity, established tourism infrastructure, and transportation connections. The city offers property prices 30-50% below Seoul while maintaining steady rental demand from residents, students, and business travelers. Annual rental yields of 4-5% combine with modest appreciation potential.

**Gangneung** benefits from 2018 Winter Olympics infrastructure and high-speed rail connections to Seoul. The city attracts year-round tourism for beaches, winter sports, and cultural events, supporting short-term rental yields of 4-6%. Property prices remain moderate at KRW 5-8 million per square meter.

**Sokcho** provides the most affordable entry point with properties averaging KRW 4-7 million per square meter while achieving some of the highest rental yields at 5-7% during peak seasons. The town's proximity to Seoraksan National Park ensures consistent tourism demand and government infrastructure support.

These three towns offer compelling combinations of reasonable purchase prices, established tourism markets, government infrastructure investment, and rental yield potential that justify their investment appeal over other coastal options.

Each location provides different risk-return profiles suitable for varying investment strategies, from Busan's stability to Sokcho's higher-yield potential.

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. South Korea Real Estate Market Outlook
2. Average House Price South Korea
3. Average Apartment Price per Sqm South Korea
4. Average Apartment Price per Sqm Seoul
5. Global Property Guide South Korea Price History
6. House Price South Korea
7. Invest Asian Busan Property
8. South Korea Price Forecasts