The Importance of Active Transactions in Real Estate Investment

Get information on Japanese real estate investment (investment condominium) with「 Dr.Asset Recommender! 」You can also check earthquake and flood risks.

「Dr.Asset Recommender」 is a service for those looking to purchase used condominiums, both for investment and personal use. Not only can you receive information on Japanese real estate investment (investment condominium), but you can also learn about earthquake risks (building collapse risk, fire risk, and difficulty of disaster response). Start by registering today!

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What is “Dr.Asset Recommender”?
It’s a service that sends property listings matching your desired criteria directly to your email, without the need to visit a real estate office. It also provides valuable content such as market prices, safety information, earthquake risks, and AI-predicted rental yields (in case you decide to rent out the property). With “Dr.Asset Recommender,” you can receive property information that matches your preferences straight to your inbox!

Benefits of “Dr.Asset Recommender”:

• Receive property information that matches your preferences via email
• Access to market price data
• Get insights into the local crime risks
• Understand earthquake and flood risks
• View sales history of the specific condominium
• Compare sales history of similar condominiums in the area

These are just some of the great features our service offer

＜Related Articles＞
How to Use 「Dr.Asset」： Get the Best Real Estate Investment (Investment Condominium) Deals in Japan

Essential Points for Success in Real Estate Investment: Reviewing Regional Price Trends, Yield Trends, and Population Index in Japan

To succeed in real estate investment, diversification is key. It’s important to understand market trends in each region. First, if you’re considering buying real estate in Japan, start by checking the price trends and average prices,Yield Trends of investment.It is also necessary to check the population index and other factors.

Check this to invest in real estate.

• Average price
• Price trends
• Average yield
• Vacancy rates
• Population index
• Transaction volumes
• Disaster risk

The Importance of Active Transactions in Real Estate Investment

When investing in real estate, one of the key factors that affect property value fluctuations is the level of market activity. Markets with frequent transactions tend to have more stable prices and higher liquidity when it comes to selling, making them attractive for investors. Especially in the case of secondhand apartments or other types of real estate investment, understanding the level of activity in each area is crucial.

Analysis of Transaction Activity by Area

Here, we analyze the trends in transaction volume across major regions in Japan from 2008 to 2024, based on data for Hokkaido, Tohoku, Kanto, Chubu, Kinki, Chugoku, and Shikoku regions. The following analysis highlights the trends for each area:

1. Kanto Region Transaction Trends

The Kanto region stands out with significantly higher transaction activity compared to other regions. As seen in the graph, transaction numbers have remained consistently high since 2008, with a rising trend leading up to 2024. Given that this region includes major metropolitan areas like Tokyo and Yokohama, it remains a popular investment destination, where rising property prices and stable rental demand can be expected.

Advice for Investors: The Kanto region, with its active transactions and high liquidity, is ideal for mid- to long-term investments. Investing in areas near major cities, where property prices are expected to rise, presents low risk and offers stable returns.

2. Kinki Region Transaction Trends

The Kinki region also shows relatively active transactions, with a noticeable rise in transaction volume since 2015. Major cities such as Osaka, Kyoto, and Kobe are hubs of real estate activity. While not as large as the Kanto region in terms of volume, Kinki still offers strong investment opportunities.

Advice for Investors: Osaka and Kyoto have high rental demand, making them suitable for investments focused on rental income. While property prices may not rise rapidly, steady returns can be anticipated.

3. Hokkaido, Tohoku, and Shikoku Region Transaction Trends

In these regions, transaction volumes are generally low, indicating less active markets. Particularly in Hokkaido and Shikoku, the lower volume of transactions suggests that investors should approach with caution.

Advice for Investors: If you are considering investing in these regions, it’s essential to carefully analyze local demand factors. Pay attention to regional growth drivers, such as tourism or regional revitalization projects, and consider long-term growth potential when making investment decisions.

How Active Transactions Reduce Investment Risk

In areas with active transactions, it’s easier to find buyers when selling a property, resulting in higher liquidity and smoother capital recovery. Conversely, in regions with fewer transactions, it can be more challenging to find buyers, potentially leading to longer sales times. Therefore, the level of market activity plays a crucial role in managing investment risks.

Conclusion

To succeed in real estate investment, it is essential to assess the level of transaction activity in the target region. Areas with high transaction volumes, such as the Kanto and Kinki regions, offer more stable returns, while investments in less active regions require more careful analysis. By constantly monitoring the market activity in each region and using transaction volume as a key indicator, investors can make informed decisions.

Number of real estate transaction cases (condominium sales)

Get information on Japanese real estate investment (investment condominium) with「 Dr.Asset Recommender! 」You can also check earthquake and flood risks.

「Dr.Asset Recommender」 is a service for those looking to purchase used condominiums, both for investment and personal use. Not only can you receive information on Japanese real estate investment (investment condominium), but you can also learn about earthquake risks (building collapse risk, fire risk, and difficulty of disaster response). Start by registering today!

Sign up here → “Dr.Asset Recommender”
Registration is free, and there are no fees until you actually purchase a property.

What is “Dr.Asset Recommender”?
It’s a service that sends property listings matching your desired criteria directly to your email, without the need to visit a real estate office. It also provides valuable content such as market prices, safety information, earthquake risks, and AI-predicted rental yields (in case you decide to rent out the property). With “Dr.Asset Recommender,” you can receive property information that matches your preferences straight to your inbox!

Benefits of “Dr.Asset Recommender”:

• Receive property information that matches your preferences via email
• Access to market price data
• Get insights into the local crime risks
• Understand earthquake and flood risks
• View sales history of the specific condominium
• Compare sales history of similar condominiums in the area

These are just some of the great features our service offer

＜Related Articles＞
How to Use 「Dr.Asset」： Get the Best Real Estate Investment (Investment Condominium) Deals in Japan