[비즈한국] Over the past few years, the national real estate market has confused investors with repeated cycles of sharp surges and sudden plunges. Among these, the Daegu real estate market has particularly struggled with price declines and a surplus of unsold housing during a long period of adjustment. However, given the nature of the real estate market, a prolonged downturn can actually be an opportunity for buyers. Daegu is currently at such a critical juncture.
Let's summarize why you should pay attention to Daegu real estate right now.
First, the long-term increase in unsold units and price drops have served as a catalyst for the market to sufficiently bottom out. Apartment prices in Daegu have fallen for several years since peaking in 2021, with prices in some areas dropping by as much as 30-40%. A market that has gone through such a deep correction is now considered to have formed a solid floor at its current price level. Experts generally agree that the possibility of a moderate rebound is higher than that of further sharp declines.
Second, it is a very positive sign that Daegu has been removed from the list of regions under special monitoring for unsold housing. As the government has been regulating new apartment supplies by designating such areas, Daegu's management of unsold units has entered a stabilization phase, to the extent that it has been taken off the list. This signifies that the issue of oversupply has been resolved to a certain degree, meaning it is more likely that new supply will be maintained at an appropriate, manageable level moving forward.
Third, unlike in the past, the volume of upcoming new apartment supply is not burdensome. As the oversupply from the last few years has been clearing out, new supply has naturally decreased, and future apartment supply is expected to be at a level that local demand can sufficiently absorb. Furthermore, if reasonable pre-sale prices that reflect market reality—rather than the unreasonable pricing of the past—are set, the risk of unsold units will significantly decrease, which could serve as a vital stepping stone for market stabilization.
Fourth, if apartment prices in the Seoul metropolitan area begin to rise prominently again, Daegu’s relatively undervalued apartments are highly likely to emerge as a competitive option. In fact, there have been several cases in the past where, during surges in Seoul and the capital region, investment demand shifted to provincial metropolitan cities where prices were relatively lower. Among these cities, Daegu—especially Suseong-gu—boasts robust educational infrastructure and amenities, which could attract external demand once price competitiveness is established.
In particular, major districts like Suseong-gu are already seeing an increase in transaction volume centered on new apartments, showing signs of a price rebound. These movements suggest that the market is gradually entering a recovery phase and are sending positive signals to other areas. Additionally, with various urban development projects such as redevelopment and reconstruction planned, there is potential for further appreciation.
Daegu has undergone sufficient market consolidation during its difficult period and is now at a crucial turning point, preparing for a new leap forward. Rather than hesitating to invest by focusing only on past hardships, it is necessary to pay more attention to the potential for future market changes. This is why the current timing could be the most ideal buying opportunity when considering both price and market conditions.
In particular, school district demand centered on Suseong-gu remains strong. "Education" is an immutable essential element in real estate investment. This is why the Beomeo-dong area in Suseong-gu is called the "Daechi-dong of Daegu." The prestigious school districts in this area have consistently generated residential demand regardless of market fluctuations and are highly likely to maintain that value in the future.
In addition, there are numerous infrastructure development projects in the pipeline. Notably, transportation network expansion plans, such as the construction of the Daegu Metropolitan Railway, are likely to boost real estate value across the entire city of Daegu, rather than being limited to specific areas. Improved transportation networks lead to greater convenience, which ultimately results in an increase in residential value for the entire region.
Furthermore, given the expectation of improving economic conditions, such as future interest rate cuts, the Daegu real estate market could normalize and rebound quickly. It is clear that if the economic stimulus measures recently unveiled by the Bank of Korea and the government take full effect, Daegu is one of the regions where real estate investment sentiment is expected to improve first.
Ultimately, investors need the wisdom to view the current adjustment period not merely as a negative market situation, but rather as a starting point for long-term and stable investment. Because Daegu real estate has gone through a long adjustment, it has successfully completed a stable bottoming process, which will provide very favorable conditions for investors from a mid-to-long-term perspective.
The success of real estate investment is determined by "timing." Now is the time for strategic choices, acting boldly when others are fearful; it is a critical opportunity for investing in Daegu real estate. One should not miss the opportunity to invest in Daegu apartments at this inflection point following a long correction.
Investment always carries uncertainty and risk, but one must remember that a time like the present, when prices and market conditions have fallen sufficiently and are facing a chance for a new rise, is a period with high risk-adjusted returns. As the Daegu real estate market emerges from the long darkness and begins a new ascent, a golden opportunity is unfolding for wise investors. Now is the time to take an interest in the Daegu apartment market and actively formulate an investment strategy.
Kim Hak-ryul, head of the SmartTube Real Estate Research Institute, famous by his pen name "Pashong," served as the team leader of the Real Estate Research Division at Gallup Korea. He operates and hosts the Naver blog "Pashong’s World Exploration" and the YouTube channel "Stue TV." He is the author of numerous books, including "The Power of Gyeonggi Real Estate (2024)," "The Absolute Principles of Seoul Real Estate (2023)," "The Future of Incheon Real Estate (2022)," "Kim Hak-ryul’s Absolute Principles of Real Estate Investment (2022)," "Future Map of South Korea Real Estate (2021)," "From Now On, Only Places That Will Rise, Rise (2020)," and "South Korea Real Estate User Manual (2020)."