Recent Drop in Investment Property Prices: Monthly Market Trends Report for May 2025

Investment Property Monthly Market Trends Report - May 2025

The latest report published by Kenbiya Co., Ltd., a subsidiary of LIFULL Corporation, offers an insightful analysis of the current market trends in investment property across Japan. For the second consecutive month, the report reveals a decline in prices for certain categories of residential income-generating properties. This comprehensive analysis is crucial for investors considering their options in a changing market.

Overview of the Report

The Monthly Market Trends Report focuses on three main types of residential income properties registered on the Kenbiya platform: divided condominiums, whole apartments, and whole buildings. The report consolidates data on surface yield and property prices to provide investors with the most up-to-date market insights.

The data gathered spans from May 1 to May 31, 2025, encompassing properties recorded on Kenbiya during this period. Key findings from the report include:

1. Divided Condominiums

The surface yield for divided condominiums experienced a slight increase from 6.56% in the previous month to 6.61%. However, property prices fell by 1.19%, dropping from 22.67 million yen to 22.40 million yen.

2. Whole Apartments

In contrast, whole apartments saw a marginal decline in their yield from 7.97% to 7.95%. Nonetheless, property prices rose by 1.41%, increasing from 82.11 million yen to 83.27 million yen, displaying a positive market activity in this segment.

3. Whole Buildings

Whole buildings, however, suffered a setback as their yield decreased from 7.57% to 7.51%. Additionally, prices dropped by 0.37%, marking a decline from 184.40 million yen to 183.72 million yen. This trend marks two consecutive months of price reductions for whole buildings, raising concerns among potential investors.

Analytical Insights

These market trends serve as a barometer for potential investors in Japan's real estate sector. The dynamics between yield rates and property prices vary significantly across different types of properties, reflecting the complex nature of the current investment landscape. Investors should consider these fluctuations as they devise their strategies for engagement in the real estate market.

For those seeking more detailed information and a complete breakdown of the analyzed data, the full report can be downloaded through Kenbiya’s website.

About Kenbiya Co., Ltd.

Kenbiya is dedicated to providing valuable information to those engaged in real estate investment. Offering resources like industry insights, columnist contributions from renowned investors, and updates on investment trends and seminars, Kenbiya aims to create a platform for informed decision-making. Alongside its flagship site, Kenbiya also operates LIFULL HOME'S Real Estate Investment, establishing itself as an authority in the sector.

About LIFULL Corporation

LIFULL Corporation, listed on the Tokyo Stock Exchange (Prime) under number 2120, operates on the guiding principle of solving social issues that hinder individual lives. Its mission is to create a society filled with safety and joy for everyone through a range of housing and real estate services. With initiatives focusing on real estate, rural revitalization through vacant house regeneration, and senior living solutions, LIFULL is continuously expanding its impact across various domains. For more information, visit the LIFULL website.