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Japan: House Prices, Rents, and Rental Yields

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Last Updated: Apr 14, 2008

Yields are moderate in Tokyo

Last Updated: Apr 14, 2008
TOKYO Centre1 - Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
30 sq. m. 307,770 1,619 6.31% 10,259 53.95
60 sq. m. 561,780 3,711 7.93% 9,363 61.85
90 sq. m. 1,151,910 5,600 5.83% 12,799 62.22
120 sq. m. 1,902,120 7,711 4.86% 15,851 64.26
150 sq. m. 2,752,500 9,545 4.16% 18,350 63.63
180 sq. m. n.a. 11,920 n.a. n.a. 66.22
210 sq. m. n.a. 14,022 n.a. n.a. 66.77
250 sq. m. n.a. 17,163 n.a. n.a. 68.65
1 The 5 central Wards of Tokyo are Chiyoda, Minato, Chuo, Shibuya and Shinjuku.
The most popular residential areas in these Wards are Roppongi, Hiroo, Ebisu, Omotesando, Azabu, Shibuya, Ichigaya, Setagaya, Aoyama and Mita.

Source: Global Property Guide

Gross rental income on apartments in Tokyo, Japan is around 5.8%. Smaller units have the highest yields. A 60-sq. m apartment generates a yield of 7.93% while a 120-sq. m apartment generates much lower at 4.86%.

Rent and apartment prices both increased from last year. However, yields have become lower because prices increased faster than rent.

Due to a dearth of space in overpopulated Tokyo, apartments in the city centre have always been very expensive. On the average, apartments sell for around US$13,324 per sq. m. Prices can go as high as US$18,350 per sq. m for a unit with 150 sq. m.

 

Japan - more data and information

Your Comments

posted by G Cox | 2007-03-25

Director, UK

Thank you for a very informative and well organised web site, in this case on Japan

posted by burton159 | 2008-05-16

Director/Valuer, Tokyo

Great site. Just came across it. When you do a global yield comparison could you do one relative to prevailing interest rates. Im sure Japan would rate much higher. (eg. 7.93%yield/2.00% retail interest rate = 3.97 compared globally would be very interesting.)

posted by our Editor: Matthew Pollock | 2008-05-16

Now that is an idea. However obtaining mortgage interest rates is not so easy, I'm not aware of any site that lists them.

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