#Japan #Real Estate #Fukuoka #Kenbiya

Unprecedented Surge in Real Estate Prices in Fukuoka

The latest fiscal quarter report by Kenbiya Corporation, which operates real estate investment platforms under LIFULL, has revealed astonishing trends in the real estate market for the period from October to December 2025. The report noted that for all types of residential income properties registered on the Kenbiya platform, average prices have reached an all-time high, with the entire market experiencing a buoyant trend that continues to raise eyebrows in the real estate community.

Key Findings

Across the three categories of residential income properties—condominium units, whole apartment buildings, and whole mansions—the report indicates a rising average price compared to the previous periods, further signaling a robust demand amid fluctuating investment yields. This marker is particularly notable as it highlights the growing competition in cities like Fukuoka, where prices are climbing perilously close to those in Tokyo's 23 wards.

Apartment Units

The national average price for condominium units has reached 26.33 million yen, marking a staggering 6.90% increase from the previous period. Notable is the fact that average prices in the metropolitan area have surpassed the 30 million yen threshold for the first time, indicating a dramatic shift in market dynamics in favor of sellers. This increase has also led to a decline in investment yield, now measured at 6.58%, which is the lowest recorded due to the price hikes.

Whole Apartment Buildings

Whole apartment buildings have shown a national average price of 89.79 million yen, rising sharply with a 5.57% increase, resulting in historically low yields at 7.98%, dropping below the critical 8% mark. The greater Tokyo area accounts for a significant part of this surge, reaching an average price nearing 100 million yen—a notable statistic that underscores the lavish growth in investment appeal even as yields diminish.

Whole Mansions

The spotlight truly shines on whole mansions, where the national average price now stands at 197.84 million yen, just shy of the 200 million yen threshold and reflecting a 4.82% increase from the previous quarter. Here, Fukuoka has emerged as a formidable market challenger, with an average price of 27.82 million yen that remarkably approaches the average price in Tokyo's 23 wards of 28.20 million yen.

Regional Insights

Upon examining regional data, the metropolitan area has reached a striking 30.54 million yen, representing a profound shift in price compared to other localities. Regions like Hokkaido and the Kansai area have also seen notable increases, showcasing that the price surge is not limited to metropolitan clusters but is encompassing inland and southern territories as well.

Disparity in Buyer/Seller Expectation

Analyzing the disparity between buyer and seller expectations, the report uncovers a significant gulf—with average registered yields at 6.58%, contrasted by buyer expectations that hover around 9.64%. In metropolitan Tokyo, this disparity narrows considerably, indicating a keener alignment between asking and offering prices. Notably, apartments under ten years in age are maintaining a steep price trajectory, with averages now about 75.97 million yen, which suggests that the demand for high-value properties continues unabated even amidst rising costs.

Summary

In conclusion, the property landscape reveals a clear upward trend across all regions and categories. With the expected price growth continuing into the next quarter, additional fluctuations in yield will likely occur as market forces adapt to this unprecedented environment. It’s essential for investors to stay keenly aware of these shifts as they navigate the complex real estate framework being shaped in cities like Fukuoka, where demand is high and competition is fierce. The Kenbiya report serves as a crucial resource for understanding these evolving dynamics, and industry stakeholders are advised to stay informed of ongoing changes to maximize their investment strategies moving forward.