NEWS

Studio Condo in Central Tokyo is the Lowest Yield in Japan

studio condo in central tokyo

Net operating income (NOI) of  studio condo in central Tokyo is the lowest, a research by Sanyu Appraisal reported.

A Tokyo-based appraisal firm cited a condo in central Tokyo with a following specification as a benchmark, and compared its NOI in Japan.

  • Structure – Reinforced concrete
  • Built in 5 years
  • With an elevator
  • 5 minutes walk from a station
  • Size – 25SQM/unit

It turns out that secondary cities (Nagoya, Sappro, Sendai, Fukuoka, Kyoto) and a vicinity of Tokyo – (Saitama City, Chiba City) yields higher return with a range of 6.2-6.8%, while the central Tokyo (an area bounded by Japan Railway Yamanote Loop Line) yields 3.8%.

Albeit the rank – a studio condo in central Tokyo has a high demand and from a liquidity perspective, Tokyo is attractive.

Rank Area NOI/2014 NOI/2013
1. Central Tokyo: Bounded by Yamanote Loop Line 4.8 5.0
2. Tokyo 23 ward – excluding the area on 1. 5.3 5.4
3. Osaka City 6.0 6.1
4. Suburb Tokyo 6.1 6.1
Yokohama City / Kawasaki City 6.1 6.2
5. Saitama City 6.2 6.3
Kobe City 6.2 6.0
6. Kyoto City 6.4 6.5
7. Sapporo City 6.5 n/a
Sendai City 6.5 n/a
Fukuoka City 6.5 6.6
8. Nagoya City 6.6 6.7
9. Suburb Osaka 6.7 6.7
10. Chiba City 6.8 7.2
Suburb Kobe 6.8 6.8