Real estate investment in korea
South Korea is one of the most beautiful countries in Eastern Asia with plenty of remarkable landmarks. Some of the favorite tourist attractions are Jeju Island, Seoul, Gyeongju, and Dadohaehaesang National Park. And let’s not forget its influential pop music culture, K-drama, and authentic Korean cuisine.
Airbnb news even marked an expansive property in PyeongChang as an exclusive getaway last year 2022. The pop icons, BTS members, stayed in this property during the film HYBE and became an instant hit.
So if you’re thinking of investing in a property in South Korea – this article is suitable for you!
Continue reading as we feature how you can successfully start a property investment in Korea. We’ll include Airbnb rules, expectations for buying property for foreigners, and even the top 10 best cities to operate Airbnb in Korea.
Is Airbnb legal in South Korea?
Yes, Airbnb is legal in South Korea. It’s important to know that an Airbnb host must register their property in their local city hall first. According to Airbnb rules in Korea, there are certain region-specific requirements and procedures prior to hosting.
This includes obtaining a VAT number from the Revenue Office and a business license. Depending on your preferred location, each local law may vary accordingly.
If you are planning to purchase an Airbnb property in Seoul, you also have to be aware of the Seoul Stay Program. This features city-specific information about guesthouses and private housing.
Real Estate Investment in Korea
If you are a foreigner who wants to invest in a property in Korea, the good news is that you can! Buying a house in Korea as a foreigner is certainly possible. There are no restrictions on whether you intend to buy a residential or commercial property. Here’s what you need to know about buying property in Korea:
1. It is required to seek approval for land purchase in protected areas.
Protected areas would include the area where the military operates or cultural properties with heritage value. According to The Foreigner’s Land Acquisition Act, property investors need to inform the government within 60 days from the issue date of a sales contract.
2. Registration of real estate
Applicable to both Korean nationals and foreigners, The Registration of Real Estate Act mandates registering a property. These documents will indicate your rights, mortgages, and ownership of property.
How much can you make on Airbnb in South Korea?
According to Airbtics, an average host can earn the highest annual Airbnb revenue of $21,846 in Ulsan, Korea. And this is just for operating a studio-type property alone. Your revenue certainly varies according to your location, property type, and Airbnb hosting experience among others.
Top 10 Profitable Airbnb Cities in South Korea
Whether you intend to solely operate an Airbnb or holiday home in Seoul or other areas, it’s best to know the profitability first! We featured Seoul rental property prices along with other cities. Check out the areas that make the best real estate investments in Korea:
1. Seoul
- Average rent price (studio type): 982,767 ₩ ($787)
- Airbnb annual revenue: 15,555,782 ₩ ($12,466)
- Average Daily Rate: $55
- Occupancy Rate: 65%
2. Jeonju-si
- Average rent price (studio type): 387,500 ₩ ($310)
- Airbnb annual revenue: 7,277,500 ₩ ($5,832)
- Average Daily Rate: $55
- Occupancy Rate: 34%
3. Busan
- Average rent price (studio type): 549,856 ₩ ($440)
- Airbnb revenue: 15,741,713 ₩ ($12,615)
- Average Daily Rate: $76
- Occupancy Rate: 45%
4. Incheon
- Average rent price (studio type): 300,000 ₩ ($240)
- Airbnb annual revenue: 13,625,348 ₩ ($10,919)
- Average Daily Rate: $57
- Occupancy Rate: 55%
5. Daegu
- Average rent price (studio type): 480,000 ₩ ($384)
- Airbnb annual revenue: 9,497,438 ₩ ($7,611)
- Average Daily Rate: $48
- Occupancy Rate: 40%
6. Ulsan
- Average rent price (studio type): 425,000.00 ₩ ($340)
- Airbnb annual revenue: 27,260,679 ₩ ($21,846)
- Average Daily Rate: $218
- Occupancy Rate: 31%
7. Daejeon
- Average rent price (studio type): 455,000.00 ₩ ($364)
- Airbnb annual revenue: 10,101,400 ₩ ($8,095)
- Average Daily Rate: $47
- Occupancy Rate: 42%
8. Seongnam
- Average rent price (studio type): 826,666 ₩ ($662)
- Airbnb annual revenue: 15,626,910 ₩ ($12,523)
- Average Daily Rate: $56
- Occupancy Rate: 65%
9. Suwon
- Average rent price (studio type): 633,333 ₩ ($507)
- Airbnb annual revenue: 15,510,860 ₩ ($12,430)
- Average Daily Rate: $55
- Occupancy Rate: 64%
10. Gyeongju
- Average rent price (studio type): 1,698,633 ₩ ($1,361)
- Airbnb revenue: 15,453,458 ₩ ($12,384)
- Average Daily Rate: $83
- Occupancy Rate: 40%
Conclusion
Korea is certainly one of the most exciting countries in Asia to start property investment. Not only will it generate a sweet amount of cash, but you also reap the country’s rewards!
While there are several excellent real estate investments in Korea, it’s always best to conduct research and use short-term rental analytics tools for a better strategy. It’s a huge risk to invest in properties – time, effort, and money shouldn’t be wasted. However, if you’re still considering other markets to target, you can go ahead and explore top cities outside Korea that are highly reccomended for Airbnb investments!
Take advantage of what the digital era can offer and make the best investment decisions! Use a free Airbnb calculator now and determine your target market’s profitability.
