Exploring Real Estate Price Trends in the Kansai Region: Investment Possibilities

Real Estate Price Trends in Kansai: A Look at Newly Built Condominiums

The construction of new condominiums, such as “Umekita” in Osaka, has reached similar price levels to those found in Tokyo, with notable properties listed at 250 million yen. However, the Kansai region, particularly in Kyoto, Osaka, and Hyogo, continues to offer relatively affordable options compared to these premium developments. This duality in pricing is critical to understanding the current market situation.

Rising Prices Amid Economic Challenges

As in Tokyo, the Kansai region is also experiencing a surge in real estate prices, driven by the rise in material costs, labor expenses, and advancements in housing quality. With neighborhoods around Osaka Station and cities like Kyoto seeing new condominium units priced over 100 million yen, overall average prices have climbed significantly. The research conducted by LIFULL HOME'S provides a detailed look at average prices and square meter costs in these prefectures, especially within the context of increasing interest rates and inflation.

An Overview of Osaka City’s Pricing

In the first five months of 2025, new condominiums listed in Osaka City included 19 areas, with an average price of 75.38 million yen, translating to a price per square meter of 1.062 million yen. This marks an increase to 112.8% compared to the previous period. Notably, average prices exceeding 100 million yen can be found in districts like Nishi, Tennoji, and Kita, with the highest being in Kita, where the average price hit 254.01 million yen. Proximity to major terminals like Osaka and Umeda Station plays a significant role in these inflated prices.

Within Osaka, certain areas are showing significant price trends, moving from a slow and steady increase to sharp fluctuations. While most districts remain in the range of 1 to 1.5 million yen per square meter, districts like Kita and Nishi have seen drastic increases, indicating a clear divide in the market between luxury and affordable options.

Kyoto Prefecture's Growing Market

Similarly, the average price of new condominiums in Kyoto Prefecture is also on the rise, with 11 areas recorded an average square meter cost of 1.148 million yen, which is a rise of 10.8% from last year. The Higashiyama district, known for its high cultural value, lists an average price of 165.19 million yen. Other notable districts like Sakyo and Nakagyo also surpassed the 100 million mark, catering to not just residential needs but also investment opportunities due to their proximity to tourist attractions and cultural sites.

There is also a reassuring presence of affordable properties in the suburbs, allowing for diverse options suitable for various buyers.

The Hyogo Scene and Its Diverging Costs

In Hyogo Prefecture, 15 areas reported an average price of 69.73 million yen for newly built condominiums, with a square meter price of 889,000 yen, a 7.4% increase from the previous year. Ashiya City stands out with the highest average price at 147 million yen with a square meter cost of 1.469 million yen, reflecting substantial demand in urban areas, particularly in Kobe City.

Navigating through Hyogo also exhibits a mix of high-end urban areas and more affordable suburban neighborhoods, creating a varied landscape for potential buyers.

A Perspective from LIFULL HOME'S

According to Toshiro Nakayama, Chief Analyst at LIFULL HOME'S, the rising costs across Osaka, Kyoto, and Kobe are indicative of a broader trend influenced by socioeconomic factors. The increase observed in some areas, like Kita and Nishi in Osaka, can be as high as 193.8% year-over-year, reflecting demand fueled not only by actual residential need but also speculation. However, other districts are stabilizing or only witnessing slight increases due to completed construction projects.

This duality underscores the need for prospective homeowners to recognize the array of options available in the market — even amidst rising prices, there are still regions where average prices remain accessible for many.

Understanding these trends will be essential for anyone looking to navigate the changing landscape of property buying and investment in the Kansai region.