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2025 Real Estate Market Report: An Overview

In a significant shift within Japan's real estate landscape, the latest report released by Kenbiya Co., focused on revenue-generating properties, shows record highs in property prices. Covering the period from January to December 2025, it compares three primary categories of residential income properties: sectional condominiums, whole apartments, and whole condominiums. This annual assessment provides a comprehensive look into current market dynamics, reflecting both registered data from listings and inquiries made by users.

Key Findings

The report reveals that the average prices across all property types have increased compared to the previous year, surpassing records since 2008. As prices have surged, investment yields across all categories have notably decreased to their lowest levels.

Sectional Condominiums
Among the three categories, sectional condominiums showcased the most pronounced increase, with an average national price soaring to ¥2,388,000, marking a remarkable year-on-year rise of 15.47%. This price level represents an almost threefold surge since its lowest point in 2011 of ¥846,000. Particularly striking was Hiroshima City, which experienced a staggering 93.39% year-on-year price increase. Conversely, Nagoya City saw its yields drop by 0.62 points below the national average.

Whole Apartments
Whole apartments reached a national average price of ¥8,416,000, which is an 8.08% increase from the previous year. Although this surge is less dramatic than that of sectional condominiums, it's notable in its recovery from the low of ¥4,211,000 in 2012. The price increases have been felt in the suburban regions of major cities, including a notable 16.96% increase in the Saitama area and significant growth in Yokohama and Chiba as well. Despite the decline in yields, which now stand at 8.08%, this remains the only property type still holding solidly above the 8% yield threshold.

Whole Condominiums
The average price for whole condominiums rose to ¥18,853,000, reflecting a 5.12% increase. This price indicates a potential ascendancy toward the ¥20 million mark, with cities such as Fukuoka witnessing an average price surge of 15.67% to ¥26,525,000, positioning it closely behind Tokyo's 23 wards.

Market Dynamics and Regional Variances

Examining regional trends reveals that the metropolitan area around Tokyo experienced a substantial increase of 16.04%, with average prices reaching ¥2,793,000. Pressure from rising urban prices permeates surrounding areas, indicating a strong upward trend that also affects regional areas significantly, especially in regions like Tokai and Kyushu, which posted double-digit growth rates.

Moreover, a detailed view based on major cities shows that Tokyo's 23 wards averaged ¥3,337,000—the highest among cities—while nearby areas like Kawasaki and Chiba also demonstrated noteworthy values. The most troubling sign may be the stark divide between cities; in locales like Sapporo and Sendai, significant gaps between registered and inquiry prices exemplify the high expectations of sellers contrasted with the more limited budgets of potential buyers, marking a challenging landscape for transactional activity.

Conclusions and Future Projections

From the insights gathered, the 2025 Real Estate Market Report by Kenbiya presents a complex and rapidly evolving market scenario for stakeholders. While property prices continue to rise steady, the declining yields across various categories suggest a cautious approach may be necessary for investors. The market is presently characterized by both opportunities in growth and potential pitfalls in yield sustainability. As the economic landscape continues to shift, understanding these dynamics will be crucial for making informed investment decisions.

For those interested in further details, the comprehensive report can be accessed through Kenbiya’s website. The findings underscore the necessity of adapting to ongoing market changes to stay ahead in the competitive landscape of real estate investment in Japan.

About Kenbiya Co.

Kenbiya Co. is a platform dedicated to providing real estate investment insights and trends, offering resources such as valuable articles by renowned investors and data relevant to real estate investment. For more information, visit Kenbiya.