NEWS
Studio Condo in Central Tokyo is the Lowest Yield in Japan
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 |