Price Trends and Yield Trends of Real Estate Investment (Investment Condominiums) in Japan

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

Price Trends and Yield Trends of Real Estate Investment (Investment Condominiums) 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 condominiums in various areas.

Key Points to Check by Region:

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

Nationwide Average Prices and Yields (Data from 2012 to 2022、nationwide)

Let’s start by looking at nationwide real estate prices and yield trends. For popular investment properties like condominiums and entire apartment buildings, yields and prices are essential indicators.

yellow:Investment Condominiums
red:entire condominium building
blue:entire condominium building

Property Type Yields and Prices (Latest Data,2022)

Source: “Real Estate Investment and Revenue Property Information Site Kenbiya”

Summary:

For all property types, yields have decreased, while prices have risen.

This indicates that although profitability as an investment has slightly declined, long-term asset value is maintained due to rising property prices. Particularly, entire apartment buildings have seen significant price increases compared to other property type

Price Trends

real estate investment(investment condominium）Price Trends

National Price Trends
Across Japan, average real estate prices have consistently risen in all age categories of properties. From 2012 to 2022, for example, properties under 10 years old increased from 17.9 million yen to 28.7 million yen, reflecting a rise of over 10 million yen within a decade. Properties over 20 years old have also shown price growth, with older properties experiencing particularly notable increases.

Trends in the Greater Tokyo Area (Tokyo, Kanagawa, Saitama, Chiba)
In Tokyo’s 23 wards, prices have increased across all age categories, with properties under 10 years old rising significantly from 19.57 million yen in 2012 to 36.9 million yen in 2022, highlighting the rapid real estate price growth in this area. Saitama, though lower in price compared to Tokyo, has seen similar growth, with properties under 10 years old rising from 21.92 million yen in 2012 to 30.29 million yen in 2022. In Chiba, prices have also risen steadily, with properties over 20 years old showing especially significant growth.

Trends in Regional Cities
In cities like Sapporo and Sendai, real estate prices have risen more gradually compared to the Greater Tokyo Area, but they still show stable upward trends. In the Kansai region, including cities such as Osaka and Kyoto, prices have also steadily increased, particularly for properties under 10 years old. Similarly, in other major cities such as Hiroshima and Fukuoka, prices have risen across the board, with older properties maintaining high levels of price stability.

Summary
Over the past 10 years, real estate prices in Japan have risen significantly, especially in urban and metropolitan areas. Property prices have shown a rising trend regardless of age, making urban real estate particularly appealing to investors. While regional cities also show price growth, the increases are generally smaller and more stable compared to major cities like Tokyo and Osaka.

Average Real Estate Yield (Area Comparison for real estate investment(investment condominium）)

In real estate investment, the average yield is a critical metric. Yield indicates the revenue generated from a property investment relative to its cost and serves as a fundamental measure for assessing investment performance. Understanding average yield helps investors balance risk and return, facilitating informed investment decisions. By comparing yields by area and property type, investors can better predict future asset value and profitability, increasing the likelihood of successful investments.

The following tables and graphs show the “yield trends” nationwide from 2012 to 2022.

Source: Kenbiya, a Real Estate Investment and Income Property Information Site

Yield Trends in the Greater Tokyo Area
In cities such as Chiba (main), Yokohama, and Saitama, yields have generally declined. Specifically, Tokyo’s 23 wards demonstrate a remarkably low yield of 5.90% as of 2022, reflecting decreased investment efficiency in metropolitan areas. Conversely, Chiba’s major areas maintain a relatively high yield at 9.08% in 2022, suggesting that suburban yields are declining more slowly than urban yields.

Yield Trends in Major Cities
Sendai shows a notably high yield of 12.18% as of 2022, with Sapporo following at 11.03%, both maintaining strong investment efficiency. Compared to large metropolitan areas, these cities present attractive investment opportunities. On the other hand, Osaka and Kyoto show lower yields, with Osaka’s yield in 2022 falling to a low 6.58%. These cities’ real estate price increases have placed downward pressure on yield.

Changes in Yield for the Greater Tokyo Area
In the Greater Tokyo Area, yields dropped from 10.79% in 2012 to 6.77% in 2022, with Tokyo’s 23 wards specifically declining from 9.72% in 2012 to 5.90% in 2022.
→ In central Tokyo, rapid property price increases have lowered yields. Many investors in these areas focus on potential asset value appreciation, aiming for capital gains rather than rental income.

Sustained High Yields in Regional Cities
Cities like Sapporo, Sendai, and Hiroshima have maintained relatively high yields. For instance, Sapporo’s yield fell from 19.16% in 2012 to 11.03% in 2022 but still remains well above the national average.
→ In regional cities, rents tend to rise along with property prices, helping sustain high yields. Regions with strong rental demand can expect solid returns.

Stable Yields in the Suburbs Near the Capital (Saitama and Chiba)
In suburban areas near the capital, such as Saitama and Chiba, yields have remained relatively high.

• Chiba: From 15.68% in 2012 to 9.08% in 2022
• Major Saitama cities: From 12.70% in 2012 to 7.75% in 2022
  → Property prices in suburban areas are lower compared to central Tokyo, and high rental demand helps maintain relatively high yields.

Low-Yield Cities (Osaka and Kyoto)
In Osaka and Kyoto, yields have significantly declined from 2012 to 2022.

• Osaka: From 11.35% in 2012 to 6.58% in 2022
• Kyoto: From 11.30% in 2012 to 7.12% in 2022
  → Rising property prices in these large metropolitan areas have disrupted the balance with rental income, resulting in declining yields.

Yield Trends

Summary

The national average yield has declined from 11.87% in 2012 to 7.41% in 2022, showing an overall downward trend.

Reason: The yield is decreasing due to rising property prices, as rental growth has not kept pace with property price increases.

In major cities (especially Tokyo, Osaka, and Nagoya), yields are trending downward, reflecting deteriorating investment efficiency as property prices climb. Conversely, yields in regional cities (such as Sendai and Sapporo) remain high, retaining their investment appeal.

For investors, new investment strategies may be needed in cities like Tokyo and Osaka, where yields continue to decrease. On the other hand, investment in regional cities remains promising from a yield perspective.

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