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
South Korea remains one of Asia's more open markets for foreigners looking to buy residential property, though you must follow specific reporting and banking rules.
The market in early 2026 is best understood as two distinct markets: a premium, scarcity-driven Seoul core where prices stay resilient, and a supply-sensitive non-capital region where oversupply risks are real.
We constantly update this blog post to reflect the latest market conditions, policy changes, and neighborhood-level data.
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.
What's the Current Real Estate Market Situation by Area in South Korea?
Which areas in South Korea have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in South Korea are Apgujeong-dong in Gangnam-gu, Hannam-dong in Yongsan-gu, and Banpo-dong in Seocho-gu, all located in Seoul's premium southern belt.
In these top-tier Seoul neighborhoods, you can expect to pay anywhere from 35 million to 55 million KRW per square meter, with some trophy apartments in Apgujeong-dong pushing even higher when rare units trade.
Each of these neighborhoods commands premium prices for distinct reasons:
- Apgujeong-dong (Gangnam-gu): Korea's original "old money" district with iconic complexes and Han River views.
- Hannam-dong (Yongsan-gu): Embassy zone with hillside luxury villas favored by executives and celebrities.
- Banpo-dong (Seocho-gu): Top school district combined with waterfront access and new redevelopment projects.
Which areas in South Korea have the most affordable property prices in 2026?
As of early 2026, the most affordable areas to buy property in South Korea while still maintaining good liquidity include Dobong-gu (Ssangmun-dong), Nowon-gu (Sanggye-dong), Guro-gu (Gocheok-dong), and Geumcheon-gu (Doksan-dong), all in Seoul's outer ring.
In these more budget-friendly Seoul neighborhoods, typical apartment prices range from 8 million to 13 million KRW per square meter, which is roughly a quarter of what you would pay in Gangnam-gu.
The main trade-off in these areas is distance from central business districts and fewer premium amenities: Dobong-gu and Nowon-gu sit at the northern edge of Seoul with longer commutes, while Guro-gu and Geumcheon-gu in the southwest have older housing stock and less prestigious school zones, though all four districts benefit from metro access and established residential infrastructure.
You can also read our latest analysis regarding housing prices in South Korea.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in South Korea Offer the Best Rental Yields?
Which neighborhoods in South Korea have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in South Korea delivering the highest gross rental yields are Sillim-dong in Gwanak-gu (around 3.5% to 4.5%), Bupyeong-dong in Incheon (around 4% to 5.5%), Changcheon-dong near Sinchon in Seodaemun-gu (around 3.3% to 4.3%), and parts of Bucheon's Sosa-gu (around 4% to 5.2%).
Across South Korea as a whole, typical gross rental yields for investment properties range from 2.5% to 4.5% in Seoul and can reach 5% to 6% in select regional cities, though these higher yields often come with greater price risk and thinner resale markets.
These top-yielding neighborhoods outperform because of specific demand drivers:
- Sillim-dong (Gwanak-gu): Massive student population from Seoul National University creates constant tenant turnover.
- Bupyeong-dong (Incheon): Industrial and office workers need affordable housing near jobs outside Seoul.
- Changcheon-dong (Seodaemun-gu): University cluster (Yonsei, Sogang, Ewha) guarantees young renter demand year-round.
- Sosa-gu (Bucheon): Commuter belt pricing with Seoul-level rents near key metro stations.
Finally, please note that we cover the rental yields in South Korea here.
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Which Areas in South Korea Are Best for Short-Term Vacation Rentals?
Which neighborhoods in South Korea perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in South Korea that perform best on Airbnb are Myeong-dong and Euljiro in Jung-gu, Seogyo-dong (Hongdae area) and Yeonnam-dong in Mapo-gu, Itaewon-dong in Yongsan-gu, and U-dong (Marine City) in Busan's Haeundae-gu.
Top-performing short-term rental properties in these Seoul neighborhoods typically generate between 2.5 million and 5 million KRW per month, while Busan's Haeundae beach properties can spike significantly higher during peak summer and festival seasons.
These neighborhoods outperform others for short-term rentals due to specific location advantages:
- Myeong-dong (Jung-gu): Korea's busiest shopping district with direct airport rail access attracts tourists daily.
- Seogyo-dong/Hongdae (Mapo-gu): Youth culture hub with clubs, cafes, and street performances pulls younger travelers.
- Itaewon-dong (Yongsan-gu): International dining scene and nightlife make it the default choice for Western visitors.
- U-dong/Marine City (Haeundae-gu): Busan's premier beachfront with luxury towers commands premium nightly rates.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in South Korea.
Which tourist areas in South Korea are becoming oversaturated with short-term rentals?
The three tourist areas in South Korea showing the clearest signs of short-term rental oversaturation are the Hongdae micro-area (Seogyo-dong) in Mapo-gu, Myeong-dong in Jung-gu, and U-dong/Marine City in Busan's Haeundae-gu.
In these oversaturated areas, the density of active Airbnb listings has grown faster than tourist demand can absorb, with Hongdae and Myeong-dong seeing hundreds of competing listings within walking distance of each subway station.
The clearest indicator of oversaturation is that occupancy rates outside of peak travel periods (cherry blossom season, Chuseok holidays, summer beach weeks) have started drifting downward while hosts compete aggressively on price, compressing profit margins for newer entrants.
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 Areas in South Korea Are Best for Long-Term Rentals?
Which neighborhoods in South Korea have the strongest demand for long-term tenants?
The neighborhoods in South Korea with the strongest long-term rental demand are Daechi-dong and Yeoksam-dong in Gangnam-gu, Seogyo-dong and Yeonnam-dong in Mapo-gu, Yeouido-dong and Dangsan-dong in Yeongdeungpo-gu, and the Sinchon micro-area (Changcheon-dong, Daehyeon-dong) in Seodaemun-gu.
In these high-demand neighborhoods, well-maintained apartments typically find tenants within two to four weeks, and vacancy rates remain among the lowest in Seoul even during slower seasons.
Different tenant profiles drive demand in each of these areas:
- Daechi-dong (Gangnam-gu): Families chasing Korea's most famous hagwon (private academy) district for children's education.
- Yeoksam-dong (Gangnam-gu): Young professionals working at nearby tech companies and startups in Teheran-ro.
- Seogyo-dong/Yeonnam-dong (Mapo-gu): Creatives, freelancers, and young couples drawn to trendy cafes and nightlife.
- Yeouido-dong (Yeongdeungpo-gu): Finance and media workers who want walking-distance commutes to major offices.
- Changcheon-dong (Seodaemun-gu): University students and recent graduates seeking affordable options near campus.
The key characteristic making these neighborhoods attractive is that each has a structural "tenant engine" that regenerates demand regardless of economic cycles, whether that is elite schools, major employers, or universities.
Finally, please note that we provide a very granular rental analysis in our property pack about South Korea.
What are the average long-term monthly rents by neighborhood in South Korea in 2026?
As of early 2026, average long-term monthly rents in South Korea vary dramatically by neighborhood, ranging from around 900,000 KRW per month in affordable areas like Sillim-dong to over 4 million KRW per month in premium Gangnam-gu locations like Yeoksam-dong or Daechi-dong.
For entry-level apartments in Seoul's most affordable neighborhoods such as Sillim-dong in Gwanak-gu or Ssangmun-dong in Dobong-gu, you can expect to pay between 900,000 and 1.8 million KRW per month for a modest one-bedroom with a typical deposit.
In mid-range neighborhoods like Seogyo-dong in Mapo-gu or Dangsan-dong in Yeongdeungpo-gu, monthly rents for a decent one-to-two bedroom apartment typically fall between 1.5 million and 2.8 million KRW.
For high-end apartments in Seoul's premium neighborhoods such as Yeoksam-dong, Daechi-dong, Hannam-dong, or Itaewon-dong, expect to pay between 2.5 million and 4.5 million KRW per month, and significantly more for larger units or luxury towers.
You may want to check our latest analysis about the rents in South Korea here.
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Which Are the Up-and-Coming Areas to Invest in South Korea?
Which neighborhoods in South Korea are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in South Korea currently gentrifying and attracting the most investor attention are Seongsu-dong in Seongdong-gu (Seoul's "Brooklyn"), Mullae-dong in Yeongdeungpo-gu (former industrial zone turning artsy), Mangwon-dong and Yeonnam-dong in Mapo-gu (mature gentrification but still drawing buyers), and Yeonsinnae area in Eunpyeong-gu (benefiting from new GTX-A rail access).
These gentrifying neighborhoods in South Korea have experienced annual price appreciation in the range of 5% to 12% over recent years, though Seongsu-dong has already seen significant gains and now trades at prices that reflect much of its transformation story.
Which areas in South Korea have major infrastructure projects planned that will boost prices?
The areas in South Korea with major infrastructure projects most likely to boost property prices are Yeonsinnae in Eunpyeong-gu (Seoul), Unjeong in Paju (Gyeonggi Province), Daegok in Goyang, and Songdo-dong in Incheon's Yeonsu-gu.
The game-changing infrastructure is the GTX (Great Train eXpress) network: GTX-A has already opened key sections connecting Paju to Seoul Station in under 20 minutes, fundamentally repricing the Unjeong and Yeonsinnae station catchments, while future GTX-B development continues to support Songdo's long-term accessibility story.
Historically, areas near newly completed major transit infrastructure in South Korea have seen price jumps of 10% to 25% within the first two years of opening, with station-adjacent properties often outperforming by an even wider margin.
You'll find our latest property market analysis about South Korea here.
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.
Which Areas in South Korea Should I Avoid as a Property Investor?
Which neighborhoods in South Korea with lots of problems I should avoid and why?
The areas in South Korea that property investors should generally approach with caution are Dalseo-gu in Daegu, Busanjin-gu and Saha-gu in Busan, and certain pockets of Gwangju where new supply has outpaced absorption.
Each of these areas faces distinct challenges:
- Dalseo-gu (Daegu): Significant unsold-after-completion inventory creates downward price pressure and slow resales.
- Busanjin-gu (Busan): Oversupply from recent development combined with population decline weakens demand.
- Saha-gu (Busan): Older housing stock and distance from premium job centers limit tenant quality and exit options.
For these areas to become viable investment options, developers would need to significantly slow new supply while local governments attract new employment anchors or infrastructure investment to regenerate demand.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in South Korea.
Which areas in South Korea have stagnant or declining property prices as of 2026?
As of early 2026, the areas in South Korea experiencing the most notable price stagnation or decline are parts of Daegu (especially Dalseo-gu and Buk-gu), certain districts in Busan (Busanjin-gu, Saha-gu), and some oversupplied pockets of Gwangju.
These areas have seen price stagnation or declines in the range of 3% to 10% over the past two to three years, while Seoul's core districts have continued to appreciate, widening the gap between capital and non-capital markets.
The underlying causes of stagnation differ by area:
- Dalseo-gu (Daegu): Aggressive new construction created a supply glut that the local population cannot absorb.
- Busanjin-gu (Busan): Young population outmigration to Seoul weakens both buyer and renter pools.
- Saha-gu (Busan): Industrial decline and lack of premium amenities make the area unattractive to upgraders.
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Which Areas in South Korea Have the Best Long-Term Appreciation Potential?
Which areas in South Korea have historically appreciated the most recently?
The areas in South Korea that have appreciated the most over the past five to ten years are the "big four" Seoul districts: Gangnam-gu, Seocho-gu, Songpa-gu, and Yongsan-gu, with specific neighborhoods like Apgujeong-dong, Banpo-dong, Jamsil-dong, and Hannam-dong leading the pack.
Here is how appreciation has varied across these top-performing areas:
- Apgujeong-dong (Gangnam-gu): Cumulative gains of 80% to 120% over the past decade for prime complexes.
- Banpo-dong (Seocho-gu): Annual appreciation averaging 8% to 12% in recent years, driven by redevelopment.
- Jamsil-dong (Songpa-gu): Strong gains of 60% to 90% over ten years, benefiting from Lotte World and Olympic Park.
- Hannam-dong (Yongsan-gu): Trophy villa prices have more than doubled in some micro-pockets over a decade.
The main driver behind this outperformance is the combination of extreme scarcity (limited new supply in established premium zones), elite school district status, and government policy that repeatedly targets these districts precisely because prices keep rising, which ironically reinforces their desirability.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in South Korea.
Which neighborhoods in South Korea are expected to see price growth in coming years?
The neighborhoods in South Korea expected to see the strongest price growth in coming years are Yeonsinnae in Eunpyeong-gu, Unjeong in Paju, Seongsu-dong in Seongdong-gu, and Songdo-dong in Incheon.
Here is what analysts project for each of these high-potential areas:
- Yeonsinnae (Eunpyeong-gu): Expected 5% to 10% annual growth as GTX-A benefits fully materialize.
- Unjeong (Paju): Projected 6% to 12% appreciation from being "20 minutes to Seoul Station" post-GTX.
- Seongsu-dong (Seongdong-gu): Continued 4% to 8% gains as the "Seoul Brooklyn" brand solidifies further.
- Songdo-dong (Incheon): Potential 5% to 9% growth tied to international schools and future GTX-B connectivity.
The single most important catalyst for future growth in these areas is improved transit infrastructure that permanently reduces commute times to Seoul's central business districts, making previously "too far" locations suddenly competitive with established neighborhoods.
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 Do Locals and Expats Really Think About Different Areas in South Korea?
Which areas in South Korea do local residents consider the most desirable to live?
The areas in South Korea that local residents consistently rank as the most desirable to live are the southeastern Seoul districts of Gangnam-gu (especially Daechi-dong and Apgujeong-dong), Seocho-gu (Banpo-dong, Jamwon-dong), and Songpa-gu (Jamsil-dong, Sincheon-dong).
Each area appeals to locals for specific reasons:
- Daechi-dong (Gangnam-gu): Korea's most famous hagwon district, making it essential for education-focused families.
- Banpo-dong (Seocho-gu): Han River parks combined with top schools and new apartment complexes.
- Jamsil-dong (Songpa-gu): Lotte World, Olympic Park, and excellent metro connectivity make it family-friendly.
- Hannam-dong (Yongsan-gu): Quiet hillside living with prestige, favored by celebrities and executives.
These locally-preferred areas are typically home to upper-middle-class Korean families with school-age children, successful professionals, and business owners who prioritize education, safety, and social status.
Local preferences largely align with what foreign investors target for capital appreciation, but foreigners often underweight the importance of specific school zones and overweight factors like nightlife or trendy cafes that matter less to Korean families.
Which neighborhoods in South Korea have the best reputation among expat communities?
The neighborhoods in South Korea with the best reputation among expat communities are Hannam-dong and Itaewon-dong in Yongsan-gu, Yeouido-dong in Yeongdeungpo-gu, and certain pockets near international schools in Seodaemun-gu.
Expats prefer these areas for practical lifestyle reasons:
- Hannam-dong (Yongsan-gu): Quiet, leafy streets near embassies with easy access to international groceries.
- Itaewon-dong (Yongsan-gu): English-friendly restaurants, diverse nightlife, and a long-established foreigner community.
- Yeouido-dong (Yeongdeungpo-gu): Finance professionals favor the proximity to major banks and broadcasting offices.
- Seodaemun-gu pockets: Families with children at nearby international or foreign schools cluster here.
The typical expat profile in these neighborhoods includes corporate transferees on housing allowances, embassy staff, English teachers seeking community, and entrepreneurs running international businesses, with Itaewon skewing younger and more social while Hannam-dong attracts families and executives.
Which areas in South Korea do locals say are overhyped by foreign buyers?
The areas in South Korea that locals most commonly say are overhyped by foreign buyers are Myeong-dong in Jung-gu, the Hongdae area (Seogyo-dong) in Mapo-gu, and Jeju Island for vacation rental investments.
Locals see these areas as overvalued for these specific reasons:
- Myeong-dong (Jung-gu): Crowded with tourists, few actual residents, and commercial rents squeeze residential quality.
- Seogyo-dong/Hongdae (Mapo-gu): Trendy but noisy, with foreigners overpaying for "vibe" that locals find exhausting.
- Jeju Island: Seasonal tourism and oversupply mean many Airbnb investors struggle outside peak months.
Foreign buyers are typically drawn to these areas by international media coverage, Instagram-friendly aesthetics, and the assumption that tourist popularity equals investment returns, while locals know that livability, school quality, and resale depth matter more for long-term value.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in South Korea.
Which areas in South Korea are considered boring or undesirable by residents?
The areas in South Korea that residents most commonly consider boring or undesirable are outer Seoul districts far from job centers like parts of Dobong-gu and Jungnang-gu, oversupplied regional areas like Dalseo-gu in Daegu, and industrial zones without lifestyle amenities.
Residents find these areas less appealing for specific reasons:
- Outer Dobong-gu (Seoul): Long commutes to Gangnam and limited dining/entertainment options make it feel isolated.
- Parts of Jungnang-gu (Seoul): Older housing stock and fewer redevelopment projects compared to neighboring districts.
- Dalseo-gu (Daegu): Oversupply and economic stagnation create a sense of decline rather than opportunity.
- Industrial Saha-gu (Busan): Working-class character with few premium cafes, restaurants, or cultural attractions.
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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 (KREB) | Official government-backed housing price survey running for decades. | We used KREB to track price and rent direction by district and identify hot versus cooling areas. We cross-checked their data against transaction records and KB surveys. |
| MOLIT Real Transaction Disclosure System | Ministry of Land's official portal showing actual recorded property transactions. | We used MOLIT to ground our KRW per square meter estimates with real deals, not asking prices. We verified which neighborhoods are truly trading at premium levels. |
| KB Think (Kookmin Bank) | Korea's largest retail bank with widely-cited housing market research. | We used KB for district-level momentum signals and weekly price change examples. We triangulated their findings with KREB to avoid single-source bias. |
| Seoul Metropolitan Government | Official city government guidance for foreign property buyers. | We used Seoul's guidance to explain purchase procedures and reporting requirements clearly. We kept the ownership rules section practical and current for foreign readers. |
| KLRI eLaw (Korean Legislation) | Official English consolidation of Korean property acquisition statutes. | We cited the 60-day reporting requirement and other legal obligations from the statute directly. We separated what is law from what is market practice. |
| Reuters | Top-tier international wire service citing primary government statements. | We used Reuters to explain policy tightening in wealthy Seoul districts and mortgage rule changes. We connected policy shifts to area-level liquidity and rental dynamics. |
| AirDNA | Industry-standard short-term rental analytics with transparent occupancy metrics. | We used AirDNA for STR economics and supply versus demand dynamics going into 2026. We combined their data with Seoul and Busan tourism stats for validation. |
| Seoul City Tourism Statistics | Official city announcement with concrete visitor numbers. | We used tourism data to link short-term rental performance to real demand drivers. We avoided vibe-based Airbnb claims by grounding them in actual visitor volumes. |
| Korea JoongAng Daily | Major Korean news outlet reporting specific infrastructure changes with dates. | We used their GTX-A coverage to identify which station areas are getting structurally closer to central Seoul. We named up-and-coming neighborhoods tied to new rapid transit. |
| Busan Metropolitan City | City government primary source on local supply and unsold housing conditions. | We used Busan's releases to avoid Seoul-centric bias and flag where supply risk is higher. We paired this with national policy signals to explain areas to approach with caution. |
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