Japan Condominiums & Apartments Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.60 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Condominiums & Apartments Market Analysis
The size of Japan Condominiums & Apartments Market is USD 71.9 billion in the current year and is anticipated to register a CAGR of over 4.6% during the forecast period. The MLIT (Ministry of Land, Infrastructure, Transport, and Tourism) reported that after four years of Y-o-Y reductions, authorized housing starts increased by 5.1% Y-o-Y to 788,091 units in the first 11 months of 2021.
- By 2022, demand was anticipated to rise further as the nation continued to be a desirable investment location for extremely wealthy Asians. Japan is a shelter for affluent people in Asia, according to Mori Nishimura of Housing Japan. The majority of foreign buyers in the nation are from Hong Kong, Mainland China, Singapore, Malaysia, and Thailand. Additionally, the US, Australia, Western Europe, Taiwan, and Indonesia are showing increasing interest.
- Favorable finance conditions, along with the market's strong political and economic fundamentals, all contribute to its allure. These elements have been more noticeable recently due to social disruptions like COVID-19. The Japanese condominiums and apartments market is likely to continue expanding as long as there is still uncertainty surrounding the global economy and there is a surplus of liquidity looking for investment possibilities.
Japan Condominiums & Apartments Market Trends
This section covers the major market trends shaping the Japan Condominiums & Apartments Market according to our research experts:
Japan’s Shrinking Population is Producing a Surplus of Housing
Japan's aging population is one of its main issues. According to the National Institute of Population and Social Security Research, Japan's population will more than halve over the course of the next 50 years, from 126.8 million in 2017 to just 50.56 million in 2115. By 2060, roughly 40% of the population will also be over 65.
A surplus of homes is already being produced as a result of the declining population. Homes that have been abandoned are frequently seen throughout Tokyo. According to MLIT, there are currently an estimated 8.49 million empty dwellings in the nation, which makes up approximately 14% of all residential units and is an increase of more than 24% from a decade ago.
By 2033, there will likely be more than 20 million abandoned dwellings. According to a recent report, the confluence of a dwindling population, plummeting land values, inconsistent registration records, and a tax structure unsuited to the current scenario has left ownership unknown on an estimated 4.1 million hectares, an area greater than Taiwan.
Moderate Rental Yields and Steady Rents
The return gained on the purchase price of a rental property, before taxes, vacancy expenses, and other costs, ranges from 3.4% to 5.4% in Tokyo's central districts. With smaller units, the yields are a little higher. The smallest flats have yields of 5.42%, which is a respectable yield. However, given that smaller flats typically require more care, a larger yield is justifiable.
Rents are generally consistent. The average mid-market asking rent in Tokyo's 23 wards (23W) was JPY 3,963 (USD 34.70) per square meter in Q4 2021, up 0.9% from the previous quarter but down 0.9% from a year earlier. Similar to this, mid-market rentals in Tokyo's central five wards (C5W) grew 1.1% quarter over quarter in Q4 2021 to an average of JPY 4,713 (USD 41.30) per square meter but dropped by 1.4% year-over-year.
During the same time frame, rentals in the south increased by 0.5% year-over-year to an average of JPY 4,104 (USD 35.90) per square meter but had decreased by 0.8% the previous year. Rents in the Inner North rose by 0.8% q-o-q to JPY 4,095 (USD 35.85) per square meter but also had a 1% annual correction. The average rent in the Inner East decreased by 1.2% annually and 0.5% quarterly to JPY 3,868 (USD 33.90) per square meter. The average rent in the West was JPY 3,737 (USD 32.70) per square meter, a rise of 0.8% quarterly and 0.3% annually. The average rent in the Outer North increased somewhat by 0.4% q-o-q to JPY 3,440 (USD 30.10) per sq. m., but it decreased by 1.1% year-over-year. The average rent in the Outer East was JPY 3,256 (USD 28.50) per square meter, up 2.3% year-over-year but down 0.9% on a quarterly basis.
Japan Condominiums & 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 & 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
Japan Condominiums & Apartments Market News
Dec 2022: Nippon House Holdings Co. Ltd launched the "Japanese House/Hinoki House" series with 15 types of exterior design.
Oct 2022: Asahi Kasei Homes concluded an agreement to acquire 100% ownership of Focus Plumbing LLC, Focus Framing, Door & Trim LLC, Focus Electric LLC, Focus Concrete LLC, and Focus Fire Protection LLC (collectively referred to as "Focus Companies"), a Nevada-based residential plumbing, framing, electric, concrete, and fire protection group, on October 14, 2022 (US Eastern time), through a US subsidiary, and completed the acquisition.
Japan Condominiums & Apartments Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Insights into Supply Chain/Value Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Government Regulations and Initiatives
- 4.7 Technological Trends
- 4.8 Comparison of Construction Cost Metrics
- 4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Condominiums
- 5.1.2 Apartments
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Sekisui House Limited.
- 6.2.2 Sumitomo Forestry's Co Ltd
- 6.2.3 Kajima Corporation
- 6.2.4 Tama Home Co.,Ltd.
- 6.2.5 Panasonic Homes Co.,Ltd.
- 6.2.6 Asahi Kasei Homes Corporation
- 6.2.7 Misawa Homes Co., Ltd.
- 6.2.8 Yamada Homes Co., Ltd.
- 6.2.9 Nakano Corporation
- 6.2.10 Nihon House Holdings Co., Ltd.*
- *List Not Exhaustive
- 6.3 Other Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
Japan Condominiums & 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 offers market size and forecasts for the Japan Condominiums & Apartments market in value (USD billion) for all the above segments and studies the impact of Covid-19 on the market.
| By Type | Condominiums |
| Apartments |
Japan Condominiums & 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 4.60% during the forecast period (2024-2029)
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: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Condominiums and Apartments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Condominiums and Apartments Industry Report
Statistics for the 2024 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 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
