On July 23rd, income-earning real estate focused property portal Kenbiya announced the results of its report on 2024 First Half High Yield Rankings for residential income properties in government-designated cities.
What is a government-designated city?
This analysis, based on new property listings on the portal site from January to June 2024, highlights the top-performing cities in terms of average gross yields for the following categories:
Strata-title condominiums
Wood-frame whole buildings
Reinforced concrete whole buildings
Rankings provided by Kenbiya, edited by Patience Realty.
The top three yields per property categories clock in as follows:
Japan Strata-Title Condominium Average Gross Yields
Shizuoka City: 18.09% (average price: ¥5.83 million)
Niigata City: 15.59% (average price: ¥5.77 million)
Kitakyushu City: 14.89% (average price: ¥4.02 million)
Japan Wood-Frame Whole Building Average Gross Yields
Niigata City: 14.89% (average price: ¥42.88 million)
Shizuoka City: 11.28% (average price: ¥43.86 million)
Kitakyushu City: 11.10% (average price: ¥57.04 million)
Reinforced Concrete Whole Building Average Gross Yields
Niigata City: 11.18% (average price: ¥144.05 million)
Kitakyushu City: 11.16% (average price: ¥175.69 million)
Okayama City: 10.17% (average price: ¥122.63 million)
Shizuoka City regained the top spot for subdivided apartments for the first time in four periods since the first half of 2022.
Meanwhile, Niigata City continued its dominance in whole apartment buildings for the 11th consecutive period since the first half of 2019 and maintained its lead in whole condominium buildings for the fourth consecutive period.
Out of the 20 government-designated cities, the yield rate increased compared to the previous 6 months in:
9 cities for strata-title condominiums
10 cities for wood-frame whole buildings
10 cities for reinforced concrete whole buildings
Hamamatsu City and Kumamoto City experienced yield increases across all property categories, showcasing robust investment potential.
In contrast, Sapporo City, Sendai City, and Osaka City saw a decline in yield rates.
Sources:
R.E. Port News (Japanese only)
Kenbiya (Japanese only)
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