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Q3 2025 Real Estate Market Insights

In an extensive survey conducted by At Home Inc., a leading real estate information service provider based in Tokyo, insight into the residential real estate market for the period of July to September 2025 has been revealed. The study involved responses from At Home franchise members across 14 areas in 13 Japanese prefectures, analyzing current market conditions based on a quarterly questionnaire. This marks the 47th iteration of the study, which began in the first quarter of 2014.

Key Findings

• - The rental market's business condition index (DI) showed a positive trend in 8 out of 14 areas compared to the same period last year. Notably, there was an increase in demand for housing in Tokyo's 23 wards driven by relocations related to job transfers and career changes.
• - In sales, the business condition DI rose in 7 out of the 14 areas compared to the previous quarter. While the Kinki region fell below its lowest level in nearly three years, the capital region saw an increase across all areas both compared to the previous quarter and year-on-year.
• - More than 40% of the real estate agencies have adopted IT customer service tools, which have proven to be effective in interacting with clients from distant locations, thereby helping to mitigate potential losses.

Analysis from At Home Lab

Junko Iwama's Insights

Junko Iwama, Director of Data Marketing at At Home Lab, stated that the distinctions in the real estate market are primarily concentrated in the Kinki and Tokyo regions. There exists a notable disparity in purchasing power between the consumer bases of Tokyo and Osaka.

While issues like heatwaves during this quarter caused a decline in rental market conditions within several areas, the overall market demonstrated resilience. Specifically, Tokyo's 23 wards continued to witness consistent demand due to job relocations, marking an impressive consecutive series of 8 quarters where the DI remains above the threshold of 50.

Conversely, the sales market in the capital region has held firm despite varying conditions in the Kinki area, particularly in Osaka Prefecture. The density of high-income earners in Tokyo’s 23 wards outperforms that of Osaka, limiting the success of sales in high-value properties and creating discrepancies in market conditions.

Survey Insights

The survey was executed between September 12 and September 25, 2025, focusing on real estate agencies in 13 prefectures, including Hokkaido, Miyagi, the Tokyo metropolitan area (including four prefectures), Shizuoka, Aichi, the Kinki region (comprising two prefectures and one prefecture), Hiroshima, and Fukuoka. The respondents included agency operators with more than five years of experience in the industry, yielding a total of 1,899 valid responses.

This DI (diffusion index) employed in this survey gauges responses relative to the same period last year, providing clearer insights into the evolving dynamics of Japan's real estate market.

For further details and comprehensive findings, please download the full report via this link.