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
If you're considering investing in South Korea's rental market, understanding the actual returns you can expect is essential before making any decisions.
This article breaks down gross and net rental yields across different South Korean cities and property types, so you can see what landlords are really earning in 2026.
We update this blog post regularly to reflect the latest market data and trends in South Korea's residential real estate sector.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in South Korea.
Insights
- South Korea's unique jeonse deposit system means you cannot simply calculate yields by dividing monthly rent by price, as a large portion of "rent value" sits in deposits that must be converted to monthly equivalents.
- The gap between Seoul's prime districts (around 2.3% gross) and affordable commuter areas (up to 5.5% gross) means location choice can more than double your South Korea rental yield.
- Officetels and small studios in South Korea typically deliver the highest gross yields because single-person households now represent over 30% of the population and drive strong demand for compact units.
- Net yields in South Korea drop by roughly 1 percentage point from gross due to property taxes, maintenance costs, and the Comprehensive Real Estate Holding Tax that hits multi-property owners harder.
- Seoul's Gangnam, Seocho, and Songpa districts consistently show the lowest rental yields in South Korea because prices are pushed up by school district premiums and "safe asset" buyer behavior.
- The Jamsil Sports and MICE Complex project starting in 2026 is expected to boost rental demand in surrounding Songpa and Gangnam fringe neighborhoods over the next several years.
- South Korea's structural vacancy rate sits at around 8%, but practical landlord vacancy in Seoul's job-rich districts runs closer to 2 to 3%, meaning just one to two weeks empty per year.
- The ongoing shift from jeonse to monthly rent (wolse) contracts is increasing cash flow visibility for South Korean landlords but also pushing monthly rents higher in high-demand areas.
What are the rental yields in South Korea as of 2026?
What's the average gross rental yield in South Korea as of 2026?
As of early 2026, the estimated average gross rental yield for residential properties in South Korea sits at around 3.4%, though this figure accounts for the deposit-to-rent conversion that is essential in a market dominated by jeonse and large deposits.
In practice, gross rental yields in South Korea range from about 2.3% in expensive Seoul neighborhoods to roughly 5.5% in more affordable commuter districts and secondary cities, so the spread is quite wide depending on where you buy.
Compared to the national average, Seoul's capital area tends to pull yields down because of exceptionally high purchase prices, while cities like Busan, Daegu, and Incheon often offer slightly better returns due to lower entry costs.
The single biggest factor influencing gross rental yields in South Korea right now is the high purchase price in the Seoul metropolitan area, which pushes the denominator up and compresses yields even when rents remain stable.
What's the average net rental yield in South Korea as of 2026?
As of early 2026, the estimated average net rental yield for residential properties in South Korea is approximately 2.3%, which reflects what landlords actually keep after covering taxes, maintenance, and other recurring costs.
The typical gap between gross and net yields in South Korea runs about 1 to 1.1 percentage points, meaning landlords lose roughly a third of their gross return to operating expenses and taxes.
The expense category that most significantly reduces gross yield in South Korea is recurring property taxes combined with potential Comprehensive Real Estate Holding Tax charges, which can hit harder if you own multiple properties or high-value homes.
Net rental yields in South Korea typically range from around 1.4% in prime Seoul districts to about 4.2% in higher-yielding secondary city locations, with the variation driven mainly by local tax burdens and building maintenance costs.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in South Korea.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in South Korea in 2026?
In South Korea's rental market in 2026, a gross yield of 4% or higher is generally considered "good" by local investors, while a net yield above 2.8% signals a property that performs better than average after all costs.
The threshold that typically separates average-performing properties from high-performing ones in South Korea is around 5% gross, and properties reaching this level are often found in commuter-belt districts or student-heavy areas rather than prime Seoul locations.
How much do yields vary by neighborhood in South Korea as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in South Korea can be as wide as 2 to 3 percentage points, meaning location choice can nearly double your returns.
The neighborhoods that typically deliver the highest rental yields in South Korea are worker and commuter hubs with affordable prices, such as Gwanak-gu (Sillim), Geumcheon-gu (Gasan Digital Complex area), Nowon-gu, and Dobong-gu in Seoul, as well as Bupyeong-gu in Incheon and Sasang-gu in Busan.
On the other hand, the lowest rental yields in South Korea are found in prestige school districts and luxury neighborhoods like Gangnam-gu (Apgujeong and Daechi), Seocho-gu (Banpo), Songpa-gu (Jamsil), and Yongsan-gu (Hannam and Itaewon), where prices are inflated by wealth and "safe asset" demand.
The main reason yields vary so much across South Korean neighborhoods is that purchase prices in prime areas surge faster than rents, compressing yields, while more affordable districts maintain stable rents relative to lower entry costs.
By the way, we've written a blog article detailing what are the current best areas to invest in property in South Korea.
How much do yields vary by property type in South Korea as of 2026?
As of early 2026, gross rental yields across different property types in South Korea range from around 2.5% for large apartments in prime Seoul districts to over 5% for officetels and small studios in commuter areas.
The property type that currently delivers the highest average gross rental yield in South Korea is officetels used as homes and small studios, because they attract strong demand from singles and young professionals who value transit access over space.
The lowest average gross rental yields in South Korea are found in large apartments, especially in Seoul's top school districts, where buyers treat these properties as blue-chip assets and accept lower income returns for perceived stability.
The key reason yields differ between property types in South Korea is that smaller units command higher rent per square meter and face less price inflation than large family apartments, which are often bought for prestige rather than cash flow.
By the way, you might want to read the following:
What's the typical vacancy rate in South Korea as of 2026?
As of early 2026, the practical landlord vacancy buffer for residential rentals in South Korea runs around 3 to 5% nationwide, which translates to roughly two to three weeks of vacancy per year for a typical rental property.
Vacancy rates in South Korea vary significantly by neighborhood, ranging from just 2 to 3% in Seoul's job-rich districts to 6 to 8% in supply-heavy or weaker-demand areas outside the capital region.
The main factor currently driving vacancy rates in South Korea is the strength of renter demand in transit-accessible job centers, where single-person households and young professionals keep units occupied almost year-round.
South Korea's structural vacancy rate of around 8% (based on census data) is higher than the practical landlord vacancy because it includes second homes, properties held for sale, and aging stock that is not truly available for rent.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in South Korea.
What's the rent-to-price ratio in South Korea as of 2026?
As of early 2026, the average annual rent-to-price ratio in South Korea is approximately 3.4% gross (or about 0.28% monthly), but this figure only makes sense when you convert jeonse deposits into their monthly rent equivalent.
A rent-to-price ratio above 0.33% monthly (or 4% annually) is generally considered favorable for buy-to-let investors in South Korea, and this ratio is essentially the same as the gross rental yield since both measure annual rent divided by purchase price.
South Korea's rent-to-price ratio is relatively low compared to many other Asian markets because of the jeonse system and the exceptionally high purchase prices in Seoul, which push ratios down even when actual rent levels are reasonable.
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in South Korea give the best yields as of 2026?
Where are the highest-yield areas in South Korea as of 2026?
As of early 2026, the top three highest-yield neighborhoods in South Korea include Gwanak-gu (particularly the Sillim area) in Seoul, Geumcheon-gu near the Gasan Digital Complex, and Bupyeong-gu in Incheon, all of which attract steady renter demand from workers and students.
In these high-yield South Korean neighborhoods like Gwanak-gu, Geumcheon-gu, and Bupyeong-gu, gross rental yields typically range from 4% to 5.5%, which is well above the national average of around 3.4%.
The main characteristic these high-yield areas share in South Korea is affordable purchase prices combined with strong, consistent renter demand from commuters, digital economy workers, and university students who prioritize transit access.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in South Korea.
Where are the lowest-yield areas in South Korea as of 2026?
As of early 2026, the three lowest-yield neighborhoods in South Korea are Gangnam-gu (especially Apgujeong and Daechi), Seocho-gu (Banpo area), and Songpa-gu (Jamsil), all located in Seoul's prestigious southern corridor.
In these low-yield South Korean areas like Gangnam-gu, Seocho-gu, and Songpa-gu, gross rental yields often fall between 2% and 2.8%, which means investors accept relatively thin cash returns compared to other parts of the country.
The main reason yields are compressed in these South Korean neighborhoods is that buyers treat properties as "safe assets" and pay premium prices driven by elite school districts and wealth concentration, pushing prices far ahead of rents.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in South Korea.
Which areas have the lowest vacancy in South Korea as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in South Korea are Yeongdeungpo-gu (particularly Yeouido), Mapo-gu (around Hongdae and Seogyo), and Seongdong-gu (Seongsu area), all of which benefit from excellent transit and job access.
In these low-vacancy South Korean areas like Yeongdeungpo-gu, Mapo-gu, and Seongdong-gu, landlords typically experience vacancy rates of just 2 to 3%, meaning properties sit empty for only one to two weeks per year on average.
The main demand driver that keeps vacancy low in these South Korean neighborhoods is their proximity to major employment centers, subway lines, and lifestyle amenities that attract young professionals and single-person households.
The trade-off investors face when targeting these low-vacancy areas in South Korea is that purchase prices are higher, which compresses gross yields even though rental income is very stable and predictable.
Which areas have the most renter demand in South Korea right now?
The three neighborhoods currently experiencing the strongest renter demand in South Korea are Mapo-gu (especially Hongdae), Yeongdeungpo-gu (Yeouido financial district), and Gangnam-gu, all of which combine job density with vibrant lifestyle options.
The renter profile driving most of the demand in these South Korean areas is young professionals in their 20s and 30s, often single or in couples, who work in finance, tech, or creative industries and prefer compact, transit-accessible housing.
In these high-demand South Korean neighborhoods like Mapo-gu, Yeongdeungpo-gu, and Gangnam-gu, rental listings typically get filled within one to two weeks, and well-priced units in good condition often receive multiple inquiries within days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in South Korea.
Which upcoming projects could boost rents and rental yields in South Korea as of 2026?
As of early 2026, the top three upcoming infrastructure projects expected to boost rents in South Korea are the Jamsil Sports and MICE Complex (starting construction in 2026), the Yongsan International Business District redevelopment, and ongoing GTX express rail expansions connecting Seoul's suburbs.
The neighborhoods most likely to benefit from these South Korean projects include Jamsil, Samseong, and Seokchon in Songpa-gu for the sports complex, plus Yongsan, Ichon, and Hannam for the business district, as improved access and amenities should strengthen rental demand.
Once these South Korean projects are completed, investors might realistically expect rent increases of 5 to 15% in directly affected micro-markets, though yields could compress if property prices rise even faster than rents in anticipation of the improvements.
You'll find our latest property market analysis about South Korea here.
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What property type should I buy for renting in South Korea as of 2026?
Between studios and larger units in South Korea, which performs best in 2026?
As of early 2026, studios and small one-bedroom units generally outperform larger apartments in South Korea when measured by rental yield and occupancy, though larger family units offer more price stability.
Studios in South Korea typically achieve gross rental yields of 4 to 5.5% (roughly 48 to 66 million KRW, 35,000 to 48,000 USD, or 32,000 to 44,000 EUR annual rent on a 1.2 billion KRW property), while larger three-bedroom apartments often yield just 2.5 to 3.5%.
The main factor explaining why studios outperform in South Korea is the surge in single-person households, which now represent over 30% of the population and create strong, consistent demand for compact, affordable rental units.
However, larger family apartments might be the better investment choice in South Korea if you target stable, long-term tenants like families in good school districts, who tend to stay for years and cause less turnover friction.
What property types are in most demand in South Korea as of 2026?
As of early 2026, the most in-demand property type in South Korea is the small apartment or officetel in transit-rich locations, driven by young professionals seeking convenient, low-maintenance housing close to work.
The top three property types ranked by current tenant demand in South Korea are officetels and studios (highest demand), mid-size two-bedroom apartments in good school districts (strong family demand), and villas or multi-family low-rise units (steady demand from budget-conscious renters).
The primary demographic trend driving this demand pattern in South Korea is the rapid growth of single-person and two-person households, combined with rising preference for monthly rent contracts over traditional jeonse deposits.
One property type currently underperforming in demand in South Korea is large detached houses in suburban areas, which struggle to attract renters due to higher maintenance costs, less convenient transit access, and the dominance of apartment living culture.
What unit size has the best yield per m² in South Korea as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in South Korea is between 20 and 40 square meters, which covers studios and compact one-bedroom officetels.
In South Korea, these optimal-sized units typically achieve gross rental yields of around 180,000 to 250,000 KRW per square meter annually (130 to 180 USD, or 120 to 165 EUR), compared to just 100,000 to 150,000 KRW for larger family apartments.
The main reason smaller units deliver higher yield per square meter in South Korea is that renters pay a premium for location and convenience rather than space, so compact units near transit command disproportionately high rents relative to their size.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in South 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 costs cut my net yield in South Korea as of 2026?
What are typical property taxes and recurring local fees in South Korea as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in South Korea ranges from about 500,000 to 2,000,000 KRW (360 to 1,450 USD, or 330 to 1,330 EUR), depending on the property's assessed value and location.
Beyond property tax, South Korean landlords must also budget for local education tax, city planning tax, and potentially the Comprehensive Real Estate Holding Tax if they own high-value or multiple properties, which can add another 200,000 to 1,000,000 KRW annually (145 to 725 USD, or 135 to 665 EUR).
These taxes and fees in South Korea typically represent about 0.3 to 0.9% of property value annually, or roughly 10 to 25% of gross rental income for a typical investment property.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in South Korea.
What insurance, maintenance, and annual repair costs should landlords budget in South Korea right now?
The estimated annual landlord insurance cost for a typical rental property in South Korea is relatively modest, usually between 100,000 and 300,000 KRW (75 to 220 USD, or 70 to 200 EUR), as comprehensive landlord policies are less common than in Western markets.
For maintenance and repairs in South Korea, landlords should budget around 0.3 to 0.6% of property value annually for newer apartments, or 0.6 to 1.2% for older villas and low-rise buildings, which translates to roughly 1.5 to 6 million KRW (1,100 to 4,350 USD, or 1,000 to 4,000 EUR) per year.
The type of repair expense that most commonly catches South Korean landlords off guard is ondol (floor heating system) repairs and boiler replacements, which can run 1 to 3 million KRW unexpectedly and are essential for Korean winter living.
In total, South Korean landlords should realistically budget 2 to 7 million KRW annually (1,450 to 5,100 USD, or 1,350 to 4,650 EUR) for insurance, maintenance, and repairs combined, depending on building age and type.
Which utilities do landlords typically pay, and what do they cost in South Korea right now?
In South Korea, tenants typically pay all utilities including electricity, gas, water, and monthly building management fees, so landlords usually only cover utility costs during vacancy periods between tenants.
During vacant months in South Korea, landlords should budget around 80,000 to 200,000 KRW per month (60 to 145 USD, or 55 to 135 EUR) for basic utilities, though this can spike higher in winter due to heating costs.
What does full-service property management cost, including leasing, in South Korea as of 2026?
As of early 2026, full-service property management in South Korea typically costs 4 to 7% of collected monthly rent, which works out to roughly 40,000 to 100,000 KRW per month (30 to 75 USD, or 27 to 68 EUR) for a unit renting at 1 million KRW monthly.
On top of ongoing management, the typical leasing or tenant-placement fee in South Korea ranges from half a month to one full month of rent equivalent, plus regulated brokerage commissions that are capped based on transaction value, usually adding 300,000 to 800,000 KRW (220 to 580 USD, or 200 to 530 EUR) per lease.
What's a realistic vacancy buffer in South Korea as of 2026?
As of early 2026, landlords in South Korea should set aside 3 to 5% of annual rental income as a vacancy buffer, which accounts for turnover time and occasional gaps between tenants.
In practice, this vacancy buffer translates to roughly 2 to 3 weeks of vacancy per year in Seoul's high-demand districts, and up to 4 to 5 weeks in areas with weaker renter demand or oversupply of new units.
Buying real estate in South Korea can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about South Korea, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Korea Real Estate Board (REB) | It's South Korea's official real estate market monitor, widely used by government and media for housing data. | We used it to anchor price and rent trend direction for sales, jeonse, and monthly rentals. We also used its methodology notes to keep comparisons consistent across regions and housing types. |
| KB Real Estate Data Hub | KB is one of South Korea's most-cited housing market benchmarks, trusted by domestic analysts and investors. | We used it to cross-check rent trend strength and the shift toward monthly rent contracts. We also used it as a second, independent reality check versus REB data. |
| Statistics Korea (KOSTAT) | It's the national statistics authority publishing census-based housing stock and vacancy metrics. | We used it to anchor the size of South Korea's housing stock so vacancy numbers are interpretable. We also used it to avoid made-up vacancy assumptions. |
| Housing Lease Protection Act | It's the legal framework for South Korea's rental system, including jeonse and wolse conversion parameters. | We used it to justify our deposit-to-rent conversion approach, which is critical for calculating yields in Korea. We also used it to keep our jeonse-equivalent rent math grounded in referenced rules. |
| Bank of Korea (BOK) | It's the central bank and the base rate is a key input into deposit conversion logic for Korean rentals. | We used it as the anchor for what a reasonable deposit return looks like in early 2026. We then stress-tested yields under slightly higher and lower deposit return assumptions. |
| Savills Korea Residential Market Outlook | Savills is a major global real estate consultancy that cites official sources and tracks professional investor behavior. | We used it to support the structural shift from jeonse to monthly rent and identify which housing types are most exposed. We also used it to keep our narrative aligned with what institutional investors are watching. |
| Seoul Metropolitan Government Tax Overview | It's the city government explaining the local tax structure that affects Seoul landlords. | We used it to map out which recurring taxes exist at the local level. We then converted that into practical net yield haircut ranges. |
| Comprehensive Real Estate Holding Tax Act | It's the legal basis for South Korea's high-value property holding tax regime. | We used it to explain the extra tax layer that applies to high-value or multi-property holdings. We also used it to justify why net yields can diverge sharply for expensive homes. |
| InvestKOREA | It's a government-backed investment promotion agency that summarizes regulated brokerage fee tables. | We used it to estimate transaction and leasing friction, since re-leasing costs affect net yield. We also used it to keep fee assumptions consistent with published caps. |
| Seoul Metropolitan Government (Jamsil Complex) | It's an official city announcement with dates and scope for a major development project. | We used it as a concrete example of an upcoming project that can move micro-market rents. We also tied it to nearby neighborhoods where rental demand may strengthen. |
| Smart City Korea | It's a public-sector channel describing major national and urban development initiatives. | We used it as another project catalyst example with clear geography. We then translated that into how yields might compress even if rents grow, because prices could rise faster. |
| Reuters | Reuters is a credible international news source that explicitly attributes policy moves and market facts. | We used it to ground the reality that Seoul is expensive and policy-sensitive. That context helps explain why Seoul yields are usually lower than secondary cities. |
| Korea JoongAng Daily | It's a major English-language Korean news outlet covering business and policy developments. | We used it to understand current utility rate trends affecting landlord costs. We also used it to estimate vacancy-period utility expenses. |
| Seoul Water (Arisu) | It's Seoul's official water utility providing rate and service information. | We used it to understand water cost structures for South Korean rental properties. We factored this into vacancy-period landlord expenses. |
| Korea City Gas Association | It's the industry body managing city gas pricing and distribution information across South Korea. | We used it to understand gas pricing structures for heating costs. We incorporated this into our landlord expense estimates. |
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