Record Highs in Apartment Prices Drive Investment Trends in Japan

Record Highs in Japan's Apartment Prices

Kenbiya, a group company of LIFULL that focuses on real estate investment and income properties, has released its latest Monthly Market Trends Report for income properties, covering data up to August 2025. This report is particularly noteworthy as it indicates that the prices of entire apartment buildings have reached the highest levels seen in the last 12 years.

The report aggregates data on three types of residential income properties—divided condominiums, whole (entire) apartments, and entire apartment buildings—registered with Kenbiya across Japan. Key metrics such as surface yield and property prices are analyzed to provide insight into current market trends.

Highlights from the Monthly Market Trends Report:

Divided Condominiums

The yield for divided condominiums has increased from 6.51% to 6.76%, which is a rise of 0.25 percentage points. However, the average price has fallen slightly from 24.6 million yen to 24.57 million yen, marking a 0.12% decrease.

Whole Apartments

For whole apartments, the yield edged up from 8.20% to 8.21%, reflecting a minor increase of 0.01 percentage points. Conversely, the average price decreased from 84.65 million yen to 83.97 million yen, which is a drop of 0.80%.

Entire Apartment Buildings

In stark contrast, the yield for entire apartment buildings has dipped slightly from 7.57% to 7.56%, a fall of just 0.01 percentage points. However, the average price has surged from 184.26 million yen to 189.84 million yen, showcasing a remarkable increase of 3.03%. This rise has led to the highest recorded price for entire apartment buildings in the past 12 years.

Overall, the report indicates a dynamic and changing real estate landscape in Japan. For investors, these shifts offer both challenges and opportunities, especially in light of the evolving demand for rental properties nationwide.

Data Collection Parameters

The data assessed in the report corresponds to properties registered and published on Kenbiya between August 1 and August 31, 2025. The focus is primarily on average yield (surface yield) and property prices, which are aggregated and analyzed monthly.

For those interested in a more comprehensive view, the detailed report can be downloaded via Kenbiya’s site, where historical data spanning the last 12 years is also characterized in the Monthly Market Trends Report from August 2019.

About Kenbiya Inc.

Kenbiya is dedicated to providing valuable insights into the real estate investment sector. It features columns by renowned real estate investors, up-to-date news on real estate investments, and information on various seminars. Kenbiya aims to create a platform where individuals involved in real estate investment can make informed decisions. The websites for Kenbiya and LIFULL HOME'S Real Estate Investment can be accessed for more details.

Company Profile

- Name: Kenbiya Inc.
- Location: 1-4-4 Kojimachi, Chiyoda City, Tokyo
- CEO: Keiichi Kurauchi
- Established: April 2004

For further information on LIFULL, a company listed on the Tokyo Stock Exchange (Prime, Stock Code: 2120), visit LIFULL’s Official Website. LIFULL operates with the mission to address social challenges through various business activities aimed at enhancing the lives of individuals, including real estate and housing services, community revitalization, and senior care initiatives.