What are the price trends and forecasts in Hiroshima right now? (January 2026)

Hiroshima's residential property market in January 2026 is showing steady momentum, driven by a major station redevelopment, rising construction costs, and a "central convenience" premium that keeps drawing buyers to the city's core wards.

In this article, we break down the current housing prices in Hiroshima, examine how prices have changed over the past year, and look ahead to what you can expect in 2026 and beyond.

We update this blog post regularly to reflect the latest data and market conditions.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Hiroshima.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Hiroshima. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Hiroshima as of 2026?

What is the average house price in Hiroshima as of 2026?

As of early 2026, the average property price in Hiroshima sits around 20 to 25 million yen (roughly 130,000 to 165,000 USD or 125,000 to 155,000 EUR) for a typical residential unit, though this varies significantly depending on whether you are looking at condos or detached houses.

When it comes to price per square meter, Hiroshima's residential properties average approximately 250,000 to 270,000 yen per square meter (around 1,650 to 1,800 USD or 1,550 to 1,700 EUR per square meter) citywide, with central wards like Naka-ku and Minami-ku commanding premiums of 300,000 to 320,000 yen per square meter.

For the realistic price range that covers roughly 80% of property purchases in Hiroshima in 2026, you are looking at 15 million to 35 million yen (about 100,000 to 230,000 USD or 95,000 to 220,000 EUR), which spans from older suburban homes to well-located resale condos.

How much have property prices increased in Hiroshima over the past 12 months?

Property prices in Hiroshima have increased by an estimated 3% to 5% over the past 12 months, which reflects a "steady but not overheated" market compared to the more aggressive growth seen in Tokyo or Osaka.

Looking at different property types, resale condos in central Hiroshima wards have risen 4% to 7%, while detached houses in suburban areas have seen more modest gains of 2% to 4% year over year.

The single most significant factor driving this price movement in Hiroshima over the past 12 months has been the completion of the Hiroshima Station redevelopment in August 2025, which dramatically improved connectivity between Shinkansen, local trains, and the streetcar network, making station-adjacent properties considerably more desirable.

Which neighborhoods have the fastest rising property prices in Hiroshima as of 2026?

As of early 2026, the top three neighborhoods with the fastest rising property prices in Hiroshima are Matsubara-cho and Danbara (near Hiroshima Station in Minami-ku), Kamiyacho and Hatchobori (the commercial heart of Naka-ku), and Yokogawa (in Nishi-ku, offering strong rail access at relatively lower prices).

These neighborhoods are seeing annual price growth of approximately 5% to 8% for Matsubara-cho and Danbara, 4% to 6% for Kamiyacho and Hatchobori, and 4% to 5% for Yokogawa, outpacing the citywide average.

The main demand driver explaining why these Hiroshima neighborhoods are experiencing the fastest price growth is improved daily convenience, particularly the station upgrade that now allows seamless transfers between Shinkansen and streetcars, combined with limited land supply in these central locations.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Hiroshima.

We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which property types are increasing faster in value in Hiroshima as of 2026?

As of early 2026, the ranking of property types by value appreciation rate in Hiroshima places centrally located resale condominiums (manshon) at the top, followed by new-build condos in prime locations, then detached houses with good transit access, and finally older detached houses in car-dependent suburban areas at the bottom.

The top-performing property type in Hiroshima, central resale condos, is appreciating at approximately 4% to 7% annually, notably outpacing other categories.

The main reason condos are outperforming other property types in Hiroshima is that they offer the best combination of location convenience, manageable size for smaller households, and strong resale liquidity, which becomes even more valuable when mortgage rates rise and buyers prioritize "safe" investments.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much do properties cost in Hiroshima?
• How much should you pay for a house in Hiroshima?
• How much should you pay for an apartment in Hiroshima?
• How much should you pay for a studio in Hiroshima?

What is driving property prices up or down in Hiroshima as of 2026?

As of early 2026, the top three factors driving property prices in Hiroshima are the completed Hiroshima Station transformation (boosting nearby values), rising construction and material costs (pushing new-build prices higher), and mortgage rate normalization (which is starting to cap buyer budgets).

The single factor with the strongest upward pressure on Hiroshima property prices right now is construction cost inflation, because the rising cost of building new homes sets a "floor" for new-build pricing, which in turn pulls up resale values across the market.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Hiroshima here.

What is the property price forecast for Hiroshima in 2026?

How much are property prices expected to increase in Hiroshima in 2026?

As of early 2026, property prices in Hiroshima are expected to increase by approximately 2% to 4% over the course of the year, reflecting continued but moderated growth as rising interest rates temper buyer enthusiasm.

The realistic range of forecasts from different analysts for Hiroshima property price growth in 2026 spans from a conservative 1% to 2% (if rate hikes accelerate) up to an optimistic 4% to 5% (if wage growth stays strong and the yen remains weak for foreign buyers).

The main assumption underlying most price increase forecasts for Hiroshima is that the Bank of Japan will continue its gradual rate normalization without shocking the market, allowing wage growth to keep pace and maintain buyer purchasing power.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Hiroshima.

Which neighborhoods will see the highest price growth in Hiroshima in 2026?

As of early 2026, the neighborhoods expected to see the highest price growth in Hiroshima are Hiroshima Station area (Matsubara-cho, Danbara, Osuga-cho in Minami-ku), Naka-ku's central core (Kamiyacho, Hatchobori, Otemachi), and Yokogawa in Nishi-ku.

The projected price growth for these top Hiroshima neighborhoods ranges from 4% to 7% for the station area, 3% to 5% for the Naka-ku core, and 3% to 5% for Yokogawa, all outperforming the citywide average.

The primary catalyst driving expected growth in these Hiroshima neighborhoods is improved daily transit convenience, particularly the lasting effects of the 2025 station upgrade that made car-free living more practical and desirable.

One emerging neighborhood in Hiroshima that could surprise with higher-than-expected growth is Gion in Asaminami-ku, which offers family-friendly space with decent rail access and is attracting buyers priced out of central areas.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Hiroshima.

What property types will appreciate the most in Hiroshima in 2026?

As of early 2026, the property type expected to appreciate the most in Hiroshima is well-located resale condominiums (manshon), particularly those within walking distance of major transit nodes.

The projected appreciation for top-performing resale condos in central Hiroshima is approximately 4% to 6% over 2026, benefiting from their combination of convenience, liquidity, and manageable financing.

The main demand trend driving appreciation for condos in Hiroshima is the shift toward smaller households and a growing preference for "lock and leave" convenience, especially among working professionals and retirees who value location over space.

The property type expected to underperform in Hiroshima in 2026 is older detached houses in car-dependent outer wards, because they face a shrinking buyer pool as young families increasingly prioritize transit access over yard space, and the buildings themselves depreciate while only the land retains value.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

How will interest rates affect property prices in Hiroshima in 2026?

As of early 2026, rising interest rates are applying moderate downward pressure on Hiroshima property prices by reducing how much buyers can borrow, which caps price growth especially in the entry-level and suburban segments.

The current benchmark is the Bank of Japan's policy rate at 0.75% (raised in December 2025), while Flat 35 mortgage rates for loans over 21 years have reached 2.08%, and markets expect the BOJ to potentially raise rates to 1% or higher by mid-to-late 2026.

A 1% change in interest rates typically reduces purchasing power by roughly 10% in Hiroshima, meaning a buyer who could afford a 30 million yen property at 1% rates might only qualify for 27 million yen at 2% rates, which directly affects what prices sellers can achieve.

You can also read our latest update about mortgage and interest rates in Japan.

What are the biggest risks for property prices in Hiroshima in 2026?

As of early 2026, the top three biggest risks for Hiroshima property prices are faster-than-expected Bank of Japan rate hikes (which could shock affordability), continued demographic decline in outer wards (thinning buyer pools), and potential volatility in new-build condo pricing if a few large projects hit the market simultaneously.

The single risk with the highest probability of materializing in Hiroshima is gradual demand erosion in outer suburban areas, because Japan's demographic trajectory is already baked in and Hiroshima Prefecture's population is declining at about 0.2% per year, which steadily reduces buyer competition outside the central convenience zones.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Hiroshima.

Is it a good time to buy a rental property in Hiroshima in 2026?

As of early 2026, buying a rental property in Hiroshima can still make sense if you focus on well-connected areas with steady tenant demand, but the math is tighter than it was a few years ago due to higher borrowing costs.

The strongest argument in favor of buying a rental property now in Hiroshima is that properties near major transit nodes (like Hiroshima Station or central Naka-ku) maintain solid occupancy rates and benefit from the structural convenience premium, which supports both rental income and future resale value.

The strongest argument for waiting before buying a rental property in Hiroshima is that if the Bank of Japan continues raising rates toward 1% or higher, financing costs will climb further and rental yields may compress, potentially creating better buying opportunities later in 2026 or 2027.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Hiroshima.

You'll also find a dedicated document about this specific question in our pack about real estate in Hiroshima.

Where will property prices be in 5 years in Hiroshima?

What is the 5-year property price forecast for Hiroshima as of 2026?

As of early 2026, the cumulative property price growth expected over the next five years in Hiroshima is approximately 10% to 18% in nominal terms, concentrated in central areas while outer suburbs may see little to no appreciation.

The range of 5-year forecasts for Hiroshima spans from a conservative scenario of about 8% to 10% total growth (if rates rise sharply and demographics weigh heavily) to an optimistic scenario of 18% to 22% (if wage growth stays strong and central demand remains robust).

This translates to a projected average annual appreciation rate of roughly 2% to 3.5% over the next five years in Hiroshima, which is modest by global standards but reasonable for a regional Japanese city.

The key assumption most forecasters rely on for their 5-year Hiroshima property price predictions is that Japan's "centralization" trend will continue, meaning well-located, transit-accessible properties will outperform while outer areas stagnate or decline.

Which areas in Hiroshima will have the best price growth over the next 5 years?

The top three areas in Hiroshima expected to have the best price growth over the next five years are the Hiroshima Station zone (Minami-ku's Matsubara-cho, Danbara, and Osuga-cho), Naka-ku's walkable core (Kamiyacho, Hatchobori, Otemachi), and Yokogawa in Nishi-ku as a connected "value" node.

The projected 5-year cumulative price growth for these top-performing Hiroshima areas ranges from 15% to 25% for the station zone, 12% to 20% for the Naka-ku core, and 10% to 18% for Yokogawa, significantly outpacing the citywide average.

This 5-year outlook is consistent with our shorter-term forecasts because the same fundamental drivers apply: transit convenience, limited central land supply, and the "centralization" of demand that Japan's demographics are forcing across all regional cities.

The currently undervalued Hiroshima area with the best potential for outperformance over five years is parts of Asaminami-ku (like Gion), which offers reasonable rail access and family-friendly space at lower entry prices, positioning it to benefit as central prices climb out of reach for some buyers.

What property type will give the best return in Hiroshima over 5 years as of 2026?

As of early 2026, the property type expected to give the best total return over five years in Hiroshima is mid-sized resale condominiums in prime or near-prime central locations, combining steady appreciation with relatively strong rental yields.

The projected 5-year total return (appreciation plus rental income) for top-performing Hiroshima condos is approximately 25% to 40%, assuming 3% to 4% annual appreciation plus 4% to 5% gross rental yields in well-located areas.

The main structural trend favoring condos over the next five years in Hiroshima is Japan's shift toward smaller households, aging population, and "convenience-first" living preferences, which all concentrate demand on well-located, manageable-sized units rather than large detached houses.

For investors seeking the best balance of return and lower risk over five years in Hiroshima, resale condos near the station or Naka-ku core offer the safest profile because they maintain the deepest buyer and renter pools, ensuring liquidity even if market conditions soften.

How will new infrastructure projects affect property prices in Hiroshima over 5 years?

The top three infrastructure developments expected to impact Hiroshima property prices over the next five years are the completed Hiroshima Station transformation (already boosting values), a planned new tram loop line to improve central connectivity (scheduled for 2026), and ongoing streetscape improvements around Peace Memorial Park and the Naka-ku core.

The typical price premium for Hiroshima properties near completed infrastructure projects runs 5% to 15% compared to similar properties farther from transit, and this premium tends to widen over time as convenience becomes more valued in a car-optional lifestyle.

The specific Hiroshima neighborhoods that will benefit most from these infrastructure developments are Matsubara-cho and Danbara (directly adjacent to the upgraded station), the Kamiyacho to Hatchobori corridor (served by the new tram loop), and Yokogawa (which benefits from improved network connectivity overall).

How will population growth and other factors impact property values in Hiroshima in 5 years?

The projected population trend for Hiroshima metro area is a continued decline of roughly 0.2% to 0.3% per year, which means the city will lose around 1% to 1.5% of its population over five years, putting downward pressure on overall housing demand but concentrating remaining demand in the most convenient locations.

The demographic shift that will have the strongest influence on Hiroshima property demand is household size shrinkage and aging, as more single-person and two-person households form while family sizes decline, driving demand toward smaller condos rather than large houses.

Migration patterns will affect Hiroshima property values by continuing to draw young people toward central, transit-connected areas while outer wards see net outflows, widening the price gap between "core" and "fringe" locations over the next five years.

The property types and areas that will benefit most from these demographic trends in Hiroshima are compact condos in Naka-ku, Minami-ku (near the station), and connected nodes like Yokogawa, which align with where shrinking but convenience-focused households want to live.

We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What is the 10 year property price outlook in Hiroshima?

What is the 10-year property price prediction for Hiroshima as of 2026?

As of early 2026, the cumulative property price growth expected over the next 10 years in Hiroshima is approximately 12% to 25% in nominal terms, though this headline number masks a wide divergence between prime areas (potentially 25% to 35%) and outer suburbs (potentially flat or slightly negative).

The range of 10-year forecasts for Hiroshima spans from a conservative scenario of about 8% to 12% total growth (if demographics bite hard and rates stay elevated) to an optimistic scenario of 25% to 30% (if wage inflation persists and central demand remains strong).

This translates to a projected average annual appreciation rate of roughly 1% to 2.3% over the next decade in Hiroshima, which reflects the reality of a mature, demographically challenged regional market.

The biggest uncertainty factor in making 10-year property price predictions for Hiroshima is Japan's demographic trajectory and whether government policies can slow or reverse population decline in regional cities, because this determines whether the buyer pool shrinks faster or slower than expected.

What long-term economic factors will shape property prices in Hiroshima?

The top three long-term economic factors that will shape Hiroshima property prices over the next decade are Japan's demographic trajectory (shrinking and aging population), real wage growth versus inflation (determining purchasing power), and the interest rate regime (which affects borrowing capacity and valuation math).

The single long-term economic factor that will have the most positive impact on Hiroshima property values is sustained real wage growth, because if wages keep rising faster than inflation, households will maintain or expand their purchasing power, supporting prices especially in desirable central locations.

The single long-term economic factor that poses the greatest structural risk to Hiroshima property values is demographic decline, because with the prefecture losing population each year and Japan's overall population shrinking, the pool of potential buyers will steadily contract, particularly hurting outer and less-convenient areas.

You'll also find a much more detailed analysis in our pack about real estate in Hiroshima.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Hiroshima, we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why it's authoritative	How we used it
MLIT Land Price Systems Hub	Japan's core government source for official land price benchmarking.	We used it to anchor Hiroshima land value trends with the most comparable official yardstick. We treat it as a slow-moving annual benchmark rather than a real-time price ticker.
MLIT Transaction Price Information	Official government channel for anonymized real transaction prices.	We used it as the closest thing to ground truth for Hiroshima deal prices by property type. We summarized recent transactions to estimate city-level prices per square meter.
MLIT Real Estate Price Index	Official index built to international statistical standards for trend tracking.	We used it to cross-check whether Hiroshima's transaction-based trend aligns with national housing price direction. We treat it as a sanity check on momentum.
Bank of Japan Economic Outlook	Central bank's flagship forecast for growth, inflation, and economic risks.	We used it to frame 2026-2036 macro scenarios affecting housing demand and borrowing capacity. We translated those implications into price pressure analysis.
Bank of Japan Monetary Policy Hub	Official record of policy decisions that move interest rates.	We used it to understand how policy normalization affects mortgage pricing. We connected that to buyer budgets and price growth in Hiroshima.
Japan Housing Finance Agency (Flat 35)	Official reference for widely used long-term fixed mortgage pricing.	We used it as a concrete, consumer-relevant rate benchmark for January 2026. We modeled affordability sensitivity using the most common posted rate range.
Statistics Bureau Internal Migration Reports	Official dataset for domestic moves, a key housing demand driver.	We used it to judge whether Hiroshima is gaining or losing residents. We translated migration direction into neighborhood-level pressure analysis.
e-Stat Population Estimates	Government's distribution platform for official population tables.	We used it to ground population level and recent changes for Hiroshima Prefecture context. We treat population as a slow but powerful force shaping the 5 to 10 year outlook.
NIPSSR Population Projections	Japan's leading official demography institute used widely in policy planning.	We used it to frame medium and long-term demographic headwinds for Hiroshima. We converted projections into supportive versus challenging demand scenarios.
BIS/FRED Japan Residential Property Prices	Standardized international series useful for cross-country context.	We used it to confirm Japan's national housing cycle direction up to the latest quarter. We treat it as a national cycle cross-check, not Hiroshima-specific data.
Reuters (BOJ Rate Reporting)	Reputable wire service that reliably reports policy moves and market levels.	We used it to complement official BOJ channels with market expectations as of the first half of 2026. We do not use it as the primary dataset, only for rate-path narrative.
Japan Guide (Hiroshima Station Coverage)	Well-known Japan travel and infrastructure explainer with on-the-ground timeline clarity.	We used it to pinpoint the Hiroshima Station transformation as a demand catalyst. We treat it as a supporting place-based factor, not a price dataset.
REINS TOWER Market Data Library	Main industry infrastructure for existing-home transaction tracking in Japan.	We used it as a methodological cross-check for how Japan's resale market is tracked and reported. Where Hiroshima-local slices were not available, we did not force numbers from it.
Tokyo Kantei Market Reports	Longstanding, widely cited housing data provider with consistent survey rules.	We used it to validate what normal condo market movements look like across regions. We only referenced Hiroshima data when explicitly published in their releases.
Statistics Bureau Japan Statistical Yearbook	Official consolidated reference for demographic baselines.	We used it to corroborate Japan's broader demographic direction affecting housing over 10 years. We then localized implications for Hiroshima's central versus outer wards.
CBRE Japan Market Outlook 2026	Leading commercial real estate research firm with comprehensive Japan coverage.	We used it to understand broader Japan real estate investment trends and how regional cities like Hiroshima fit into the national picture.
Trading Economics (Japan Interest Rate)	Widely referenced economic data aggregator with timely rate updates.	We used it to track the latest Bank of Japan policy rate movements and market expectations. We cross-referenced with official BOJ sources for accuracy.