Higher property prices lift Japan brokerage revenue despite softer deal volumes

Japan’s major real estate brokerages posted broad gains in commission revenue in fiscal 2025, as rising property prices supported transaction value even as deal volumes softened at some firms, according to a new industry survey.

Fudosan Ryutsu Kenkyujo, with the literal translation being Real Estate Distribution Research Institute, announced the results of its fiscal 2025 brokerage performance survey on May 22nd.

FY2025 refers to the time period from April 1st, 2025 until March 31st, 2026.

The survey was conducted through questionnaires sent to major real estate brokerage companies, with responses received from 21 firms.

Table courtesy of R.E. Port News; translated by Patience Realty.  Methodology notes are at the bottom of the article. Click image to enlarge.

Among the 20 responding companies excluding Taisei Yuraku Real Estate Sales Co., Ltd., which changed its calculation standards, 17 reported higher commission revenue. Seven posted double-digit growth. Transaction value increased at 18 companies, while eight recorded a decline in the number of transactions handled.

Buyer Selectivity Begins to Rise

Amongst responding firms, there is a growing view that buyers are beginning to struggle to keep up with price increases. Several companies said buyer behavior is becoming more selective, particularly in areas where prices have risen rapidly.

Tokyu Livable said that in some unusual markets, including parts of the Tokyo Bay waterfront area that had previously been in a boom-like state, seller inquiries have increased while buyer inquiries have declined. The company said this has created the impression that supply-demand conditions are beginning to loosen.

Livable also noted that even within the same area, condominiums now need some distinctive feature to attract buyer interest.

There are also signs of a gradual shift from central Tokyo to suburban areas. Livable said some of its stores in Tokyo non-23 wards have seen increased demand from buyers moving out of central Tokyo, while Keio Real Estate Co., Ltd. said areas such as Tama and Chofu are showing signs of recovery.

Investors Remain Active but More Cautious on Rates

Corporate and investment brokerage, referred to in the survey as wholesale brokerage, also remained active. This segment covers larger transactions involving companies and institutional buyers.

Purchasing appetite among these client types changed little overall, although more clients appear to be taking a cautious stance in response to rising interest rates.

Even so, the market remains lively. Some companies are releasing real estate holdings as part of measures related to activist investor pressure, helping bring assets to market.

Asset classes that can respond flexibly to inflation, such as hotels and commercial facilities, remain especially popular.

Existing Housing Demand Supports Retail Brokerage

Retail brokerage, which generally refers to transactions involving individual homebuyers and sellers, remained active. Demand has increasingly flowed into the existing housing market as new condominium supply has declined, and new-build prices have surged.

The brokerage results align with broader resale market data. According to REINS data for the January–March 2026 quarter, the average price per square meter of existing condominiums in Greater Tokyo rose for the 23rd consecutive quarter.

This rise in existing home prices helped lift transaction values and commission revenue across many brokerage firms, even where deal volume did not increase.

Overall, the results suggest that Japan’s brokerage market remains active, but increasingly dependent on higher asset prices and selective demand rather than broad-based transaction growth.

Methodology Notes:

• Tokyu Livable’s commission revenue includes leasing brokerage and leasing-related revenue.

• Mitsui Fudosan Realty Group’s commission revenue refers to brokerage segment revenue, including sales brokerage, leasing brokerage and property management revenue.  

• Sumitomo Fudosan Sales’ commission revenue includes leasing brokerage.

• Mitsubishi Jisho (Estate) Group figures combine Mitsubishi Jisho Real Estate Services Co., Ltd. and Mitsubishi Jisho House Net Co., Ltd.

• Taisei Yuraku Real Estate Sales Co., Ltd. changed its calculation standards, so no year-on-year comparison is provided.

• Tokyo Tatemono Real Estate Sales Co., Ltd. and Sumitomo Forestry Home Service Co., Ltd. report figures for the fiscal year ended December 2025.

• Sekisui House Group reports figures for the fiscal year ended January 2026.

• All other companies report figures for the fiscal year ended March 2026.

• Changes are compared with the previous fiscal year.

Source: 

R.E. Port News (Japanese only)