One of the strongest draw cards for investing in Japanese property markets is the high rental earnings that are possible. Upwards of 5%+ is common and in some properties it’s possible to get above 10% earnings.
Traditionally finding properties that have a high rental return and capital growth has been pretty much non-existent, however, according to the Real Estate Economic Institute, the average price of a condominium in Japan in 2015 was ¥46.18 million, which is 7.2 percent higher than it was in 2014. By 2017 spurred by material and labor shortages, the price of condos have increased by almost 20 percent, the steepest rise ever. Therefore, here in Japan, we observe simulataneous access to high rental returns and capital gains.
PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI) rank Japan as number one in Asia in 2016 as regards prospects for residential property investment returns, ratifying the same results from 2015. Tokyo ranked number 1 and Osaka, number 4. Rental earnings typically are around 5% possibly higher.