Tokyo

Tokyo The littoral area will be transformed to a large residential area after the Tokyo Olympic in 2020. It is drawing a huge attention for the rental apartment demand.

Pros and Cons of real estate investment in Tokyo prefecture
  • In preparation for the 2020 Tokyo Olympics, the bayside areas of Harumi, Toyosu, Ariake, etc. are undergoing extensive construction work. The plan is for this construction to make this an even better place to live after the Olympics so the area is expected to see an increased demand from potential tenants in the future. Of course, the rest of the metropolitan area is seeing an increase in new office building construction which will make the area even more convenient to live in.
  • Very high expenses
    Investment return is very low
  • In what is now called “Tama New Town”, Inagi City, Tama City, Hachioji City, and Machida City have long been popular residential areas.
  • Very low rental demand in some areas
    Aging population in this area is increasing.

Tokyo

Rent Rate

Average Rent in Tokyo’s 23 Wards

  Shinjuku Ward Nakano Ward Shibuya Ward Chuo Ward Minato Ward
1R 83,600JPY 66,400JPY 101,500JPY 114,000JPY 126,400JPY
1K 89,900JPY 78,100JPY 104,200JPY 96,800JPY 111,600JPY
1LDK 175,500JPY 135,000JPY 192,700JPY 161,100JPY 215,900JPY
2LDK 239,700JPY 159,000JPY 265,600JPY 226,500JPY 303,200JPY

However, as the points written above are going on, the properties in Tokyo are much more expensive and produce less of a return when compared to the other large cities in Japan. Recent gross yield examples only go as high as 5% in some areas. When purchasing property in this area it is probably best to place a larger down payment, and to hold the property simply as an asset.

While this area definitely has a larger population and less risk for vacant rooms, this makes the competition for properties much fiercer than other large cities. It is very important to make one’s property stand out amongst any neighboring competitors.

Tama City and Hachioji City

  Hachioji City Machida City Fuchu City Tama City
1R 43,700JPY 52,300JPY 49,800JPY 48,800JPY
1K 50,700JPY 57,200JPY 58,000JPY 52,900JPY
1LDK 81,400JPY 88,600JPY 94,400JPY 89,400JPY
2LDK 86,100JPY 98,600JPY 108,000JPY 102,000JPY

n recent years it has been said that the population in this area has been aging, but there are also a large number of universities (Tokyo University of Technology, Kyorin University, JF Oberlin University, Tama Art University, etc.) in the area that have attracted single tenants and family tenants alike. Also, Hachioji Station has access to three main train lines (Chuo Line, Yokohama Line, and Hachiko Line) as well as only being roughly 400 meters away from Keio Hachioji Station which provides very convenient access to various parts of downtown Tokyo, and makes this area a very popular “Bed Town”. Also, there are many cases of rebuilding old buildings which has led to an increase in young tenants.

Finally, the property prices in this area are lower than those in central Tokyo, and finding properties with over 5% yield is much more common.

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Area Information

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Fukuoka

A city designated by ordinance that broke through a population of 1.5 million in 2013.The highest population growth in the country.

Hokkaido

Cities in demand is not only Sapporo that is the center of economy in Hokkaido.

Ibaraki

With Tsukuba express, Ibaraki plays a big role as a bed town of Tokyo

Kyoto

The famous tourist spot is also very popular as a residential area.

Kanagawa

An area in which banks are willing to invest and that we recommend properties that has vast land and high estimated evaluation.

Gunma

A popular area for investment with an easy access to Tokyo

Hiroshima

A popular area for investment thanks to relatively less natural disasters

Yamanashi

A little-known great area that is reportedly being expected to bloom taking Tokyo Olympic as an opportunity

Niigata

A popular area as the biggest and the only city designated by ordinance on the Japan sea side in main island of Japan

Shizuoka

Only 45 minutes to Tokyo by Shinkansen – there is rental needs among commuters

Osaka

An area that keeps gaining popularity lately thanks to an odd investment situation that is a little different from what people would think of

Nagano

An area where it tends to be able to have vast land leading to high estimated evaluation unlike cities designated by ordinance

Tokyo

The littoral area will be transformed to a large residential area after the Tokyo Olympic in 2020. It is drawing a huge attention for the rental apartment demand.

Tochigi

An area in high demand for investment as a bed town with an easy access to Tokyo

Nara

There are areas that can definitely expect a high demand. It is likely to get positive result with sufficient preliminary investigation.