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Property prices in Hiroshima are experiencing significant upward momentum as we reach mid-2025. The city's residential real estate market is showing strong growth driven by foreign investment, urban redevelopment, and favorable economic conditions for both domestic and international buyers.
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Hiroshima's property prices are rising substantially, with existing condominiums up 9% year-on-year and new condominiums soaring 42.5% in recent periods. Central areas are seeing the strongest growth while suburban areas remain more stable.
Foreign investment has surged 45% due to the weak yen, making Hiroshima an attractive destination for international buyers seeking value compared to Tokyo and Osaka.
| Metric | Current Value (2025) | Trend/Change |
|---|---|---|
| City Center Apartment Price | Ā„271,000 per sqm ($1,817) | +9% year-on-year (existing) |
| Suburban Apartment Price | Ā„170,000 per sqm ($1,133) | Stable to modest growth |
| New Condominium Prices | Premium pricing in central areas | +42.5% surge in 2023 |
| Foreign Investment | High activity in luxury segment | +45% increase due to weak yen |
| Rental Yields | 4.5% city center, 5.0% suburbs | Competitive vs Tokyo (3.44%) |
| Market Outlook | Positive for central/luxury properties | 20-30% growth expected 2025-2035 |
| Comparison to Tokyo | 50-70% cheaper per sqm | Catching up in growth rates |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
How much have Hiroshima property prices increased in the past year?
Hiroshima property prices have shown remarkable growth over the past year, with different segments experiencing varying levels of appreciation.
Existing condominiums in Hiroshima increased by 9% year-on-year as of early 2025, reflecting strong demand in the established residential market. This growth rate is particularly impressive considering the stability that typically characterizes Japanese regional markets.
New condominiums have experienced even more dramatic price increases, with some reports indicating increases of up to 42.5% in certain periods during 2023-2024. This surge is primarily concentrated in central Hiroshima areas such as Naka, Minami, and Nishi Wards, where urban redevelopment projects and infrastructure improvements have driven premium pricing.
Detached homes have seen more modest but steady appreciation of 2-4% annually, following broader national trends. Suburban areas have experienced flatter growth compared to central locations, with some rural districts seeing minimal price movement or slight declines due to demographic shifts.
These increases place Hiroshima among Japan's faster-growing regional property markets, though still well below Tokyo's 10.7% residential price growth recorded in January 2025.
What are the current average property prices in Hiroshima as of June 2025?
As of June 2025, Hiroshima's residential property prices remain significantly more affordable than major Japanese metropolitan areas while showing strong appreciation potential.
| Property Type & Location | Average Price | USD Equivalent |
|---|---|---|
| Apartments (City Center) | Ā„271,000 per sqm | $1,817 per sqm |
| Apartments (Suburban Areas) | Ā„170,000 per sqm | $1,133 per sqm |
| 1-Bedroom Rental (City Center) | Ā„50,700 per month | $335 per month |
| 1-Bedroom Rental (Suburban) | Ā„35,000 per month | $231 per month |
| 3-Bedroom Rental (City Center) | Ā„110,000 per month | $724 per month |
| Detached Homes (Suburban) | Ā„25-35 million | $179,000-$250,000 |
| Land Prices (Prefecture Average) | Ā„141,900 per sqm | $948 per sqm |
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Which areas of Hiroshima are seeing the biggest price increases in 2025?
Central Hiroshima districts are experiencing the most significant property price appreciation, driven by urban redevelopment and infrastructure investments.
Naka Ward, Minami Ward, and Nishi Ward represent the epicenter of price growth, with new condominium developments commanding premium prices due to their proximity to business districts and transportation hubs. These central areas have benefited from major infrastructure projects, including the upcoming JR Hiroshima New Station Building scheduled for completion in spring 2025.
Saeki Ward has emerged as a hotspot for investors seeking suburban growth, with land prices climbing from Ā„137,000 to Ā„141,900 per square meter recently. The area offers an attractive combination of peaceful residential living with convenient access to central Hiroshima via improved transportation links.
Aki Ward is experiencing active development with new residential projects like the "Wow House Sofis Garden series," focusing on energy-efficient housing and modern amenities. The ward benefits from the JR Kure Line and Hiroden Streetcar Line, making it increasingly accessible for commuters.
Kure's waterfront districts are attracting attention due to major redevelopment projects around the Yamato Museum, transforming the coastal areas into desirable residential locations. With a population exceeding 208,000, demand for waterfront properties is pushing prices upward.
In contrast, northern districts and rural areas of Hiroshima Prefecture continue to experience flat or declining prices due to population outmigration and limited infrastructure investment.
What property types are experiencing the strongest price growth in Hiroshima?
New condominiums in central locations are leading Hiroshima's property price surge, followed by luxury and high-specification residential properties.
New condominiums have recorded the most dramatic price increases, with growth rates reaching 42.5% in premium central locations during 2023-2024. These properties attract both domestic buyers seeking modern amenities and foreign investors capitalizing on the weak yen.
Existing condominiums are showing strong but more moderate appreciation at 9% year-on-year, indicating broad-based demand across Hiroshima's established residential stock. This segment benefits from the city's growing popularity among young professionals and expatriates.
Luxury and high-end properties are experiencing robust demand from foreign buyers who find exceptional value compared to Tokyo and Osaka pricing. The combination of favorable exchange rates and Hiroshima's growing international profile has made premium properties particularly attractive to overseas investors.
Energy-efficient and smart technology homes are commanding premium prices, supported by government policies requiring compliance with energy conservation standards for mortgage eligibility. Properties meeting these specifications are seeing faster appreciation than conventional builds.
Detached houses are experiencing more stable, moderate price growth of 2-4% annually, making them attractive for families seeking value and space. Suburban detached homes remain the most affordable entry point into Hiroshima's property market.
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What are the current mortgage rates for property buyers in Hiroshima as of June 2025?
Mortgage rates in Japan remain historically attractive for Hiroshima property buyers, despite recent increases by the Bank of Japan.
Variable rate mortgages, chosen by approximately 75% of Japanese homeowners, currently average around 0.27% to 2.48% depending on the lender and borrower profile. City banks are charging about 2.48% for standard variable rate loans as of mid-2025, while online banks offer more competitive rates starting from 0.27%.
Fixed-rate Flat 35 mortgages for 21-35 year terms are currently available at maximum rates of 3.57% for loans with loan-to-value ratios of 90% or less. The Bank of Japan's policy rate increase to 0.25% in July 2024 has had minimal impact on these historically low borrowing costs.
Foreign buyers face additional considerations, with most lenders requiring permanent residency status for standard mortgage terms. Non-permanent residents typically need larger down payments of 20-50% compared to the standard 10-20% for permanent residents. Several banks including SMBC Prestia, Suruga Bank, and SBI Shinsei Bank offer specialized mortgage products for foreign nationals with minimum annual incomes ranging from Ā„4-7 million.
Despite modest rate increases, Japan's mortgage rates remain among the world's lowest, making Hiroshima property investment particularly attractive for both domestic and foreign buyers with appropriate residency status.
How do Hiroshima property prices compare to other major Japanese cities in 2025?
Hiroshima offers exceptional value compared to Japan's major metropolitan areas while delivering competitive investment returns and growth potential.
| City | Average Price (City Center, per sqm) | YoY Change (2025) | Notes |
|---|---|---|---|
| Tokyo | Ā„819,000-1,116,000 ($5,439-$7,411) | +10.7% | Highest prices, fastest growth |
| Osaka | Ā„477,000-875,000 ($3,167-$5,810) | +2.3% | Major urban center, moderate growth |
| Fukuoka | Ā„700,000-800,000 ($4,650-$5,300) | +9% | Regional hub, strong growth |
| Hiroshima | Ā„271,000 ($1,817) | +9% (existing condos) | Exceptional value, strong growth |
| Nagoya | Ā„400,000-600,000 ($2,667-$4,000) | +3-5% | Industrial center, steady growth |
| Sapporo | Ā„300,000-450,000 ($2,000-$3,000) | +5.8% | Regional city, moderate growth |
Hiroshima delivers exceptional investment value, offering properties at 50-70% less cost per square meter than Tokyo while achieving comparable growth rates of 9% for existing condominiums. Rental yields in Hiroshima (4.5% city center, 5.0% suburbs) significantly exceed Tokyo's central district average of 3.44%.
What is driving the increase in Hiroshima property prices during 2025?
Multiple converging factors are driving Hiroshima's property price appreciation, creating a robust foundation for continued growth.
Foreign investment has surged 45% due to the weak Japanese yen, making properties significantly more affordable for overseas buyers. International investors are particularly active in Hiroshima's luxury and new-build segments, drawn by the favorable exchange rates and the city's growing international profile following events like the G7 Hiroshima Summit.
Urban redevelopment and infrastructure investment are transforming central Hiroshima, with major projects including the JR Hiroshima New Station Building and waterfront developments around the Yamato Museum. These improvements are creating premium residential areas and driving demand for centrally located properties.
Demographic shifts are concentrating demand in urban areas, with young professionals attracted by job opportunities in Hiroshima's expanding tech and manufacturing sectors. The city is also seeing increased interest from seniors seeking compact, urban housing near medical facilities and amenities.
Tourism recovery and international exposure have boosted Hiroshima's global recognition, increasing demand for vacation homes and short-term rental properties. The city's unique historical significance and cultural attractions continue to draw both tourists and potential residents.
Limited supply in central areas due to land scarcity and high construction costs is constraining inventory, particularly for luxury and centrally located properties. This supply-demand imbalance is supporting price appreciation in prime locations.
What are property price forecasts for Hiroshima through 2026 and beyond?
Property price forecasts for Hiroshima indicate continued strong growth through 2026, with sustained appreciation expected in central and premium segments.
Medium-term forecasts (2025-2028) project continued moderate to strong price growth in central Hiroshima, particularly for new and luxury condominiums. Analysts expect central areas to see cumulative gains of 15-25% over the next three years, driven by ongoing infrastructure investment and foreign demand.
Long-term projections (2025-2035) anticipate cumulative price increases of 20-30% for prime properties in central Hiroshima. This growth trajectory is supported by the city's expanding international profile, continued urban redevelopment, and Japan's economic recovery. Energy-efficient and smart technology properties are expected to command particular premiums as government regulations increasingly favor sustainable construction.
Regional variation is expected to continue, with suburban and rural areas experiencing more modest growth or potential stagnation. Northern districts and outlying areas may see further price divergence unless new development initiatives or policy interventions occur.
Market experts predict that Hiroshima will continue outperforming the national average, especially in high-end and sustainable properties. The combination of relatively affordable entry prices compared to Tokyo and Osaka, strong growth fundamentals, and increasing international recognition positions Hiroshima favorably for sustained appreciation.
Potential risks include further Bank of Japan interest rate increases and global economic uncertainties, though current forecasts suggest these factors will have limited impact on Hiroshima's growth trajectory through 2026.
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.
Is demand for properties in Hiroshima increasing among foreign buyers in 2025?
Foreign buyer demand for Hiroshima properties has surged dramatically in 2025, driven by favorable economic conditions and the city's growing international appeal.
Foreign investment in Japanese real estate reached $10.2 billion in 2023, with a 45% increase in the first half of 2023 alone. Hiroshima has captured a significant portion of this international interest, particularly in the luxury and new-build segments where foreign buyers can leverage favorable exchange rates for maximum value.
Real estate agencies report a notable spike in inquiries from foreign clients, particularly following high-profile international events like the G7 Hiroshima Summit and the opening of luxury hotels including the Hilton Hiroshima and The Ritz-Carlton. These developments have elevated Hiroshima's profile among affluent international investors seeking both investment opportunities and lifestyle properties.
Currency advantages continue to drive demand, with the weak yen making Japanese properties significantly more affordable for overseas buyers. For example, properties valued at Ā„100 million cost substantially less in foreign currency terms compared to previous years, creating exceptional buying opportunities for international investors.
Foreign buyers are particularly focused on central Hiroshima properties near transportation hubs and business districts, as well as waterfront developments that offer both investment potential and lifestyle appeal. The city's reputation for safety, cultural significance, and growing business opportunities makes it attractive for both investment and relocation purposes.
Legal accessibility also supports foreign demand, as Japan imposes no restrictions on foreign property ownership, and specialized mortgage products are available for qualified international buyers through banks like SMBC Prestia and Suruga Bank.
What are the rental yields like for investment properties in Hiroshima currently?
Hiroshima offers attractive rental yields that significantly exceed those available in Japan's primary metropolitan areas, making it compelling for property investors.
Gross rental yields in Hiroshima average 4.5% in the city center and 5.0% in suburban areas, substantially higher than Tokyo's central district average of 3.44% in Q1 2025. These yields reflect both the city's affordable property prices and steady rental demand from young professionals, students, and expatriates.
The rental market benefits from Hiroshima's role as a regional business and educational hub, with major universities and growing technology and manufacturing sectors creating consistent demand for quality housing. Occupancy rates remain high, with minimal vacancy issues in well-located properties.
Short-term rental opportunities are emerging as tourism recovers, with some investors converting centrally located apartments into legally compliant vacation rentals to capture higher daily rates from international visitors. This trend offers potential for enhanced returns, though with increased operational complexity.
Foreign nationals make up an increasing portion of rental demand, particularly in central areas near international businesses and educational institutions. This demographic typically prefers modern, well-equipped properties and is willing to pay premium rents for quality accommodation.
Rental growth prospects remain positive, supported by continued economic development and population concentration in urban areas. Properties meeting energy efficiency standards and offering modern amenities are commanding rental premiums, reflecting evolving tenant preferences.
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How is the supply of new housing in Hiroshima matching current demand levels?
Hiroshima's housing supply is struggling to keep pace with surging demand, particularly in central areas where land scarcity and construction costs limit new development.
Limited supply in central locations is creating a supply-demand imbalance that supports price appreciation. Land availability in prime areas like Naka, Minami, and Nishi Wards is severely constrained, making new developments both rare and expensive. High construction costs due to material inflation and labor shortages further restrict new supply, especially for high-specification and eco-friendly buildings.
New residential projects are focusing on energy efficiency and smart technology integration, responding to government requirements for energy conservation standards. Developments like the "Wow House Sofis Garden series" in Aki Ward exemplify this trend, though overall construction volumes remain limited by regulatory constraints and cost pressures.
Demographic trends are concentrating demand in urban areas while suburban and rural districts face oversupply risks. Young professionals and seniors are increasingly seeking central locations with access to employment, medical facilities, and urban amenities, creating intense competition for limited urban housing stock.
Population dynamics show Hiroshima city attracting residents while the broader prefecture experiences mild population decline. This urbanization trend intensifies demand for city center properties while creating potential oversupply in outlying areas.
Construction activity is gradually adapting to meet new government energy standards, with mandatory compliance required by April 2025. This regulatory shift is improving building quality but also increasing development costs and timelines, further constraining near-term supply growth.
What role is government policy playing in Hiroshima's property market trends?
Government policies at both national and local levels are significantly influencing Hiroshima's property market dynamics, generally supporting price appreciation through multiple channels.
Energy efficiency regulations are reshaping new construction, with mandatory energy conservation standards required for all new buildings by April 2025. Properties meeting these standards qualify for preferential Flat 35 mortgage rates and tax reductions, creating market premiums for compliant developments and driving demand for modern, efficient housing.
Bank of Japan monetary policy continues to support property markets through historically low interest rates, despite recent modest increases. The policy rate of 0.25% maintains highly accessible borrowing conditions for qualified buyers, while expectations of gradual rate normalization are not deterring current investment activity.
Regional development initiatives are targeting areas like Hiroshima through infrastructure investment and urban renewal projects. These policies aim to revitalize regional cities and distribute economic growth beyond Tokyo and Osaka, directly benefiting Hiroshima's property market through improved transportation, facilities, and business development.
Tourism promotion policies are indirectly supporting property demand through increased international visitors and exposure. Events like the G7 Hiroshima Summit and government initiatives to exceed pre-pandemic tourism levels by 2025 are raising Hiroshima's international profile and attracting foreign investment.
Tax policies supporting green construction through subsidies and incentives are encouraging developers to build Net Zero Energy Houses (ZEH) and other sustainable properties. These policies are creating a two-tier market where energy-efficient properties command premiums over conventional buildings.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Based on comprehensive analysis of Hiroshima's residential property market as of June 2025, property prices are definitively going up, with strong momentum expected to continue through 2026 and beyond.
The verdict: Yes, property prices in Hiroshima are going up significantly. Central areas are experiencing robust double-digit growth, foreign investment has surged 45%, and multiple fundamental drivers support continued appreciation in this increasingly attractive regional market.
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Sources
- Numbeo - Property Investment in Hiroshima Japan
- Living Cost - Cost Comparison Hiroshima Osaka
- Old Houses Japan - Hiroshima Real Estate Potential
- Bamboo Routes - Average House Price Japan
- Bamboo Routes - Hiroshima Real Estate Forecasts
- Bamboo Routes - Hiroshima Real Estate Trends
- Bamboo Routes - Japan Real Estate Trends
- Global Property Guide - Japan Price History
- Statista - Japan Average Land Price Hiroshima
- Reuters - Japan Land Prices Rise Strongest Pace 34 Years