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  • Writer's pictureAdam German

Japan wide investment condo average price drops for first time in 3 months

On March 5th, Kenbiya announced its Income Generating Property Market Trends Report for February, 2024.


Kenbiya is a Japan based property portal that focuses on advertising buy-to-let residential properties only.


The report measures properties in three categories; strata-title condominiums, wood-frame whole buildings and reinforced concrete whole buildings.


The data below was compiled by aggregating the listing prices and advertised gross yields for the three different property types nationwide.


As such, the below data is averaged out across Japan and should only be seen as trend illustration.  The numbers below in no way guarantees yields as real estate is a hyper local game.  


Gross yield is calculated by dividing the annual rental income by the listed property price. 


 

In February, the average price of strata-title condos dropped slightly to an average of 19.35 million yen, a decrease of 0.05% from the previous month, marking the first decline in three months. 


The gross yield, however, increased to 6.83% (up 0.12 percentage points), rising for the first time in three months.  This would indicate rents are holding up better than prices.


The price of wood-frame whole buildings rose to an average of 79.01 million yen, an increase of 2.30%, marking the first increase in two months. 


With the price increase, the average gross yield slightly decreased to 8.05% (down 0.02 percentage points), the first decline in three months.


The price of reinforced concrete whole buildings continued to decline for the second consecutive month to an average of 174.78 million yen, a decrease of 0.17%. 


The gross yield also turned downward to 7.72%, down 0.05 percentage points, indicating rents too are softening somewhat.


Further Reading:

Kenbiya Income Generating Property Market Trends Report for February, 2024 (Japanese only; data more granular than nationwide data)

pre2024-03-05
.pdf
Download PDF • 979KB

Source:

R.E. Port News (Japanese only)

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