（Kashiwa station, Chiba)
Do you want to know the best buy places to own a condo unit in Japan ?
Toyokeizai, one of the renowned business magazines in Japan
recently featured the unique real estate (condo unit for home) information in Japan.
The magazine picked up some best buy railways stations in greater Tokyo, Osaka and Nagoya to own for your home.
The ranking is based on unique method of PER (Price Earning Ratio).
This particular PER is used to calculate the length (years) to pay back the property price
(new 3 bed room unit with 70 m2) if you rent out.
For example,
Your condo : 50 million yen
The median rent to rent your property : 200,000 yen per month
PER : 20.83 (years to pay back)
The lower PER is, the better price to buy.
(Shinsekai, Osaka)
Now is an intriguing time in Japan when it comes to buying or renting property for your home.
On one hand, demand for homes has been consistently on the rise in big cities. Yet despite the price rise, it doesn’t necessarily discourage homebuyers.
Instead, even though Tokyo and other surrounding cities boast fairly high housing prices, some people are still opting to buy instead of rent.
As a result, the property price for condo units is growing
quite sharply over last six years (but it is not in the state of bubble yet)
The average price of new condo units sold in Tokyo 23 wards
went up about 30% since 2012.
Here’s a look at the best places in big cities to own your condo unit (newly built 3 bed rooms with 70m2) property and turn the value for money.
Name of station Railway Line PER Median price for new condo unit with 70m2 (in mill yen)
Kanto area (Tokyo and surrounding cities)
1. Kashiwa JR Joban 14.97 37
2. Keikyu Kawasaki Keikyu 16.05 46
3. Ageo JR Takasaki 15.59 37
4. Meguro JR Yamanote 17.24 83
5. Chiba JR Sobu 17.61 41
6. Machida JR Yokohama 17.85 38
7. Funabashi
-Nichidaimae Keiyo Kosoku 18.13 29
8. Shinsugita JR Negishi 18.39 40
9. Yoshikawa
-Binan JR Musashino 18.42 32
10. Kamata JR Keihintohoku 18.44 55
(Kushiyaki)
Kansai area (Osaka and surrounding cities)
1. Tenjinbashisuji
-6chome Osaka Metro 14.93 42
2. Tegara Sanyo denki 15.31 25
3. Osaka JR Kanjo 15.52 53
4. Nakanoshima Keihan
Nakanoshima 17.06 49
5. Senriyama Hankyu Senri 17.16 35
Chubu area (Nagoya and surrounding cities)
1. Higashi-Okazaki Meitetsu 16.17 27
2. Gifu JR Tokaido 16.55 37
3. Okazaki JR Tokaido 16.60 31
4. Nakamura
-Kuyakusho Nagoya Metro 16.76 37
5. Kawana Nagoya Metro 17.04 43
(Nagoya)
Source:
Final thoughts
PER is a just indicator for the comparison purpose however if you are seriously considering buying a condo for your home, you may want to buy a good property in good location which is value for money.
As the price of the real estate is growing, rents may grow as well, which could offset the benefit of good PER.
In long term, proximity to the city center is another important factor so you may want to avoid places that
are far from the city center even if PER is attractive.
Rent yield (yield of the investment) in Kanto area (Tokyo area) is markedly lower than in most other cities.
Comparatively low property prices combine with relatively higher rent prices to create a city that is especially suitable to owning rental property.
Other helpful Articles
What to Know About Defects Problems and Industry Issues in Japan Before You Buy a Condo
Buying a house in Japan ? Here’s all-too common mistakes to avoid
(Shinsekai, Osaka)
Toshihiko Yamamoto
Real estate investing consultant and author.
Founder of Yamamoto Property Advisory in Tokyo.
International property Investment consultant and licensed
real estate broker (Japan).
He serves the foreign companies and individuals to buy and sell
the real estates in Japan as well as own homes.
He holds a Bachelor’s degree in Economics from
Osaka Prefecture University in Japan
and an MBA from Bond University in Australia
Toshihiko’s book, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage and Sell Real Estate in Japan”is now out on Amazon, iBooks (iTunes, Apple) and Google Play.
About the book
Amazon.com Link
