| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 5.00% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Japan Condominiums And Apartments Market Analysis
The Japan Condominiums And Apartments Market is expected to register a CAGR of greater than 5% during the forecast period.
In recent years, Japan's condominium and apartment market has witnessed significant trends, marked by rising prices and a shifting supply landscape. Demand is projected to grow, bolstered by Japan's allure as a prime investment hub for Asia's ultra-wealthy. Mori Nishimura of Housing Japan notes that Japan serves as a haven for Asia's affluent. Predominantly, foreign buyers hail from Hong Kong, Mainland China, Singapore, Malaysia, and Thailand, with the US, Australia, Western Europe, Taiwan, and Indonesia also showing heightened interest.
As per a report by the Real Estate Economic Institute, the average price of new condominiums nationwide hit a record YEN 59.11 million in 2023-2024, a 15.4% jump from the prior year, marking the seventh consecutive year of price surges. This uptick is largely driven by soaring construction material and labor costs, alongside the emergence of ultra-luxury properties, especially in central Tokyo.
In the Tokyo metropolitan area, encompassing Tokyo and its neighboring prefectures of Kanagawa, Saitama, and Chiba, average prices reached YEN 81.01 million, reflecting a 30% increase. Within Tokyo's 23 wards, new condominium prices skyrocketed nearly 40% year-on-year to YEN 114.83 million, breaching the ¥100 million mark for the first time. Yet, amidst these price hikes, the supply of new condominiums has dwindled. In 2024, the Greater Tokyo Area recorded a 14.4% drop in new units, totaling 23,003 – the lowest in years. This supply contraction is primarily attributed to soaring construction costs and labor shortages, resulting in delays and project completion hurdles.
Looking forward, the Real Estate Economic Institute projects a 13% uptick in new condominium supply for the Greater Tokyo Area in 2025, estimating around 26,000 units. However, with construction costs remaining high and a sustained demand for centrally located housing, prices are likely to remain elevated. This scenario may drive buyers to explore existing condominiums or suburban properties as more budget-friendly options.
Japan Condominiums And Apartments Market Trends
Japan’s Shrinking Population is Producing a Surplus of Housing
Japan's major metropolitan areas are witnessing a surge in condominium and apartment prices, driven by a dwindling supply. According to the Real Estate Economic Institute, the average price of new condominiums nationwide reached a record YEN 59.11 million in 2023-2024, marking a 15.4% increase from the previous year and the seventh consecutive year of price hikes. This trend is largely attributed to rising construction material and labor costs, coupled with the rise of ultra-luxury properties, particularly in central Tokyo.
Japan's shifting demographics are leading to a housing surplus. In 2024, the number of vacant homes, or "akiya," soared to about 9 million, representing roughly 14% of all residential properties. This surplus is largely a consequence of a declining population, which is on track to decrease from its current numbers to an anticipated 87 million by 2070. The situation is further complicated by ongoing new home constructions, despite the shrinking population.
Even with soaring prices, the introduction of new condominiums has been limited. In 2024, Greater Tokyo saw the launch of just 23,003 new units. However, a rebound is on the horizon, with a projected 13% uptick in 2025. As construction costs remain elevated, many potential buyers are shifting their focus to existing condominiums and suburban locales for more budget-friendly options. The market is poised to stay competitive, fueled by urban demand, scarce land, and economic factors swaying real estate investments.
The growing number of vacant homes poses challenges: they hinder community revitalization, become safety hazards when neglected, and complicate disaster responses in a nation frequently facing natural calamities. Furthermore, government efforts to repurpose these vacant properties grapple with hurdles like bureaucratic delays and poor record-keeping, which dissuade potential buyers and investors.
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Moderate Rental Yields and Steady Rents
Japan's condominium and apartment market is on the rise, buoyed by moderate rental yields and stable rent levels. In Q2 2024, Japan's gross rental yields averaged 4.33%, closely mirroring the previous quarter's 4.36% and showing a slight uptick from last year's 4.30%. In Tokyo's central districts, yields spanned from 3.12% to 5.92%, with an average of 4.17% in Q2 2024, highlighting that larger apartments often commanded higher returns.
Rental rates have held steady, underscoring persistent demand. In Q2 2024, the average mid-market asking rent in Tokyo's 23 wards was YEN 4,229 sqm, a minor 0.2% dip from the prior quarter but a notable 4.8% rise from the previous year. The central five wards experienced a 5.5% annual rent increase, bringing the average to YEN 5,063 per square meter. This rent stability can be linked to a net influx of over 65,000 new residents from March to May 2024, notably including an increasing number of foreign nationals favoring centrally located rentals.
Even with hurdles like soaring construction costs and labor shortages limiting the supply of new condominiums highlighted by a 29.7% drop in newly supplied units in the Tokyo metropolitan area in the first half of fiscal 2024, the rental market stands firm. Q2 2024 saw occupancy rates in Tokyo's 23 wards at a robust 96.2%, signaling strong demand. The blend of moderate rental yields, consistent rent growth, and elevated occupancy rates continues to draw investors to Japan's condominium and apartment market.
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Japan Condominiums And Apartments Industry Overview
The Japanese Condominiums and Apartments market landscape is fragmented and competitive, with a large number of domestic and international players. Some of the key players in the market include Sekisui House Limited, Sumitomo Forestry's Co. Ltd, Kajima Corporation, Tama Home Co. Ltd, and Panasonic Homes Co. Ltd. To gain significant market share, companies are also adopting green construction.
Japan Condominiums And Apartments Market Leaders
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Sekisui House Limited.
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Sumitomo Forestry's Co Ltd
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Kajima Corporation
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Tama Home Co.,Ltd.
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Panasonic Homes Co.,Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Japan Condominiums And Apartments Market News
- July 2024: In a strategic move, Avatar Capital Partners, an emerging real estate fund manager from Asia, has secured a 70-unit luxury residential development in the heart of Tokyo. Just an 8-minute drive from the iconic Imperial Palace, the acquisition was made at a notable 30% discount to the asset's appraised value.
- July 2024: Meiho Enterprise Co., Ltd., a key player in supplying over 150 newly-constructed rental housing units across Tokyo's 23 wards, is set to bolster its presence in Taiwan. The company has inaugurated its first local subsidiary, named "Meiho Enterprise TAIWAN Co., Ltd." Operations are slated to kick off in February 2025.
Japan Condominiums And Apartments Industry Segmentation
The condominiums and apartments refer to the supply and demand for houses, usually in a particular country or region. A key element of the condominiums and apartments market is the average house prices and trends in house prices.
The Japan Condominiums and Apartments Market report provides qualitative and quantitative information on segmentation by type (Condominiums and Apartments). The report details market sizes and forecasts for Japan condominiums and apartments, measured in USD billion, across all segments, while also assessing the impact of geopolitical events and the pandemic on the market.
| By Type | Condominiums |
| Apartments |
By Type
| Condominiums |
| Apartments |
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Japan Condominiums And Apartments Market Research FAQs
What is the current Japan Condominiums And Apartments Market size?
The Japan Condominiums And Apartments Market is projected to register a CAGR of greater than 5% during the forecast period (2025-2030)
Who are the key players in Japan Condominiums And Apartments Market?
Sekisui House Limited., Sumitomo Forestry's Co Ltd, Kajima Corporation, Tama Home Co.,Ltd. and Panasonic Homes Co.,Ltd. are the major companies operating in the Japan Condominiums And Apartments Market.
What years does this Japan Condominiums And Apartments Market cover?
The report covers the Japan Condominiums And Apartments Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Japan Condominiums And Apartments Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Japan Condominiums And Apartments Industry Report
Statistics for the 2025 Japan Condominiums And Apartments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Condominiums And Apartments analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
