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Hiroshima's property market shows robust growth with existing condominium prices up 9% year-on-year as of mid-2025. Foreign buyer participation has surged 45% recently while commercial land prices rose 7.4% annually.
The residential market demonstrates steady momentum driven by youth migration, infrastructure upgrades around Hiroshima Station, and increased foreign investment. Central apartment prices average ¥271,000 per sqm while suburban areas offer better rental yields at 5-7%.
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Hiroshima's property market is experiencing steady growth with existing condos up 9% year-on-year and new developments rising 42.5% in prime locations.
The city attracts young professionals and foreign buyers, with 30% population aging driving demand for central, accessible apartments.
| Market Indicator | Current Status (2025) | Trend/Outlook |
|---|---|---|
| Existing Condo Prices | +9% year-on-year | Strong upward momentum |
| Central Apartment Price/sqm | ¥271,000 | Steady growth expected |
| Suburban Rental Yields | 5-7%+ | Stable to improving |
| Foreign Buyer Activity | +45% year-on-year | Rapid expansion |
| Commercial Land Prices | +7.4% year-on-year | Robust growth |
| New Housing Development | +8% in 2024 | Continued expansion |
| Population Trend | Urban core growth | Central demand increase |
What has been the year-on-year change in average residential property prices in Hiroshima over the past five years?
Hiroshima's residential property market has experienced steady price growth over the past five years, with significant acceleration in recent periods.
From 2020 to 2023, residential properties in Hiroshima grew at an average annual rate of 1.5% to 3%. This moderate but consistent growth reflected stable local demand and gradual economic recovery.
The market dynamics shifted dramatically in 2024 and 2025. Existing condominium prices jumped 9% year-on-year as of mid-2025, while new condominium prices in prime central locations soared by an impressive 42.5%. This acceleration stems from increased demand from young professionals, foreign investment activity, and major redevelopment projects around Hiroshima Station.
The price growth trajectory shows Hiroshima transitioning from a slow-growth regional market to a more dynamic investment destination. Infrastructure improvements and urban renewal projects have attracted both domestic and international buyers, driving competition for quality properties in central areas.
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How many housing units were sold in Hiroshima in the last 12 months compared to the previous year?
Specific transaction volume data for Hiroshima is not publicly available in detailed format, but market indicators confirm increased sales activity over the past 12 months.
Transaction activity has steadily increased throughout 2024 and into 2025, particularly in central wards where redevelopment activity is concentrated. This follows the nationwide trend of rising sales volumes across Japan's regional cities.
The increased activity reflects several factors: higher buyer interest from young professionals relocating to urban areas, growing foreign investor participation, and new inventory from development projects. Real estate professionals report more active showings and faster property turnover compared to previous years.
National sales volume data for 2024 shows year-on-year increases, and Hiroshima participates in this upward trend due to its attractive pricing relative to major metropolitan areas and ongoing urban improvements.
What is the current average price per square meter for apartments and single-family homes in Hiroshima?
Hiroshima's property prices vary significantly between location and property type, with central areas commanding premium pricing.
For apartments and condominiums, central Hiroshima locations average ¥271,000 per square meter for existing properties. Prime central locations for new developments can reach ¥700,000 to ¥900,000 per square meter, while second-hand apartments in these areas typically cost ¥600,000 to ¥800,000 per square meter.
Suburban areas offer more affordable options at approximately ¥170,000 per square meter for existing apartments. This significant price difference makes suburban properties attractive for investors seeking higher rental yields and families looking for more space.
Single-family homes present different pricing structures. While specific per-square-meter data isn't separately published, complete properties typically range from ¥30 million to ¥50 million nationwide, with Hiroshima prices generally lower than Tokyo or Osaka. Estimated per-square-meter costs for houses fall between ¥400,000 and ¥700,000 depending on location, condition, and land value.
How has the rental yield in Hiroshima shifted in the past three years, both in central wards and suburban areas?
Rental yields in Hiroshima have improved moderately over the past three years, supported by stable demand and rising rental prices.
| Area Type | Current Yields (2025) | 2022 Yields |
|---|---|---|
| Central Wards | 4.0% - 4.5% | 3.8% - 4.2% |
| Suburban Areas (Nishi, Asaminami) | 5% - 7%+ | 4.5% - 6.5% |
| Peripheral/Higher-risk Markets | Up to 8% | Up to 7.5% |
| Premium Central Properties | 3.5% - 4.0% | 3.2% - 3.8% |
| Student Housing Areas | 5.5% - 7.5% | 5.0% - 7.0% |
What is the current vacancy rate for residential properties in Hiroshima, and how does it compare to the national average in Japan?
Hiroshima's residential vacancy rate remains moderate and below the national average for urban rental markets.
The city's vacancy rate sits in the mid to high single digits for rental properties, which is lower than Japan's overall residential vacancy rate of 13-14%. This lower vacancy reflects stronger demand dynamics in Hiroshima's urban core compared to rural areas nationwide.
Student and professional demand helps maintain occupancy rates, particularly in central wards near universities and business districts. The aging population creates some suburban vacancies, but young people moving into urban areas offset this trend in central locations.
Rental demand benefits from Hiroshima's position as a regional economic center, attracting workers from surrounding prefectures and maintaining steady occupancy for well-located properties.
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How many new housing units are under construction or planned for completion in Hiroshima within the next two years?
Hiroshima's new housing development activity increased significantly in 2024 with continued expansion planned through 2026.
New residential developments grew by 8% year-on-year in 2024, driven primarily by major redevelopment projects around Hiroshima Station. The new JR station building opening in 2025 has catalyzed additional development activity in surrounding areas.
Several large multi-use complexes are scheduled for completion by 2028, with hundreds to thousands of new residential units expected to be delivered across ongoing and planned developments by 2027. This represents substantial new supply for a regional market.
The development pipeline focuses on transit-oriented projects that combine residential, commercial, and office space. These projects target young professionals and families seeking modern amenities and convenient transportation access.
What are the latest population trends in Hiroshima, including growth or decline, migration flows, and aging demographics?
Hiroshima faces the demographic challenges typical of Japanese regional cities, with overall population decline offset by urban core growth.
The broader Hiroshima area continues gradual population decline, following national trends of low birth rates and aging demographics. However, the urban core experiences modest net positive migration as young professionals and students relocate from rural areas and other prefectures.
Approximately 30% of Hiroshima's population is aged 65 or older, creating significant pressure on suburban housing markets while driving demand for centrally located, accessible apartments. This demographic shift benefits urban developers and investors focusing on convenient, age-friendly properties.
Migration patterns show rural-to-urban movement within the prefecture, with young people leaving peripheral areas for central Hiroshima's employment and educational opportunities. This trend supports demand for urban rental properties while creating suburban vacancies.
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How have interest rates in Japan affected mortgage demand and affordability in Hiroshima specifically?
Japan's modest interest rate increases have had limited impact on Hiroshima's property market, with demand remaining strong despite slightly reduced affordability.
The Bank of Japan's policy rate near 0.5% for 2025 represents a minor increase from previous ultra-low levels. Since most Japanese borrowers use variable-rate mortgages, even small rate changes affect affordability calculations.
The rate increases have slightly reduced affordability and cooled marginal demand, but haven't reversed the underlying price growth trend in Hiroshima. Strong savings rates, asset wealth, and attractive fixed-rate mortgage options continue to support buyer activity.
Hiroshima's market remains buoyant because property prices are still attractive relative to major metropolitan areas, and buyers often have substantial cash positions that reduce financing dependency.
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What is the proportion of foreign buyers in Hiroshima's property transactions, and has this share grown recently?
Foreign buyer participation in Hiroshima's property market has surged dramatically since 2022, though starting from a small base.
Foreign buyers now account for a significant minority share in central and luxury property segments, with activity up 45% year-on-year recently. This growth rate significantly exceeds that of many other secondary Japanese cities.
While foreign participation remains smaller than in Tokyo or Osaka, the growth trajectory is notably faster in Hiroshima. Foreign investors particularly target new-build developments and central properties that offer good rental potential and capital appreciation prospects.
The increase reflects growing international awareness of Hiroshima as an investment destination, supported by improved accessibility, competitive pricing, and strong rental demand from students and professionals.
How have commercial property prices in Hiroshima evolved in the past five years, particularly in office and retail sectors?
Commercial property in Hiroshima has experienced robust price growth, outperforming residential markets in recent years.
Commercial land prices rose 7.4% year-on-year in 2025, continuing a positive multi-year trend that has accelerated since the pandemic recovery. This growth rate positions Hiroshima among Japan's stronger commercial property markets outside major metropolitan areas.
Over the past five years, office and retail properties have seen moderate but accelerating price increases, particularly in areas around transit-oriented redevelopment projects and tourist zones. The redevelopment around Hiroshima Station has been a key driver of commercial property values.
Mixed-use developments combining office, retail, and residential space have attracted premium pricing and strong investor interest. Tourism recovery and business district modernization support continued commercial property appreciation.
What is the projected GDP growth and employment outlook for Hiroshima Prefecture over the next three years?
Hiroshima Prefecture's economic outlook remains positive with steady growth expected through 2027.
Projected real GDP growth aligns with national forecasts at 1.3% for fiscal year 2025 and 1.1% for fiscal year 2026. While modest, this growth supports continued property demand and price stability.
The employment market is expected to remain tight with solid wage growth around 5% in annual negotiations. This wage growth supports housing affordability and rental demand, particularly for young professionals in central areas.
Key economic drivers include manufacturing, technology, and tourism sectors. These industries provide stable employment that underpins residential property demand and supports commercial real estate values in business districts.
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How do Hiroshima's property price forecasts compare with other major regional cities in Japan such as Fukuoka, Osaka, and Nagoya?
Hiroshima's property market performance positions it competitively among Japan's major regional cities, with strong growth prospects through 2027.
| City | Recent Year-on-Year Growth | 2025-2027 Market Outlook | Central Price per sqm (2025 est) |
|---|---|---|---|
| Hiroshima | Existing condos +9% | 20-30% growth to 2035 | ¥271,000 |
| Fukuoka | 7-10% year-on-year | Strong central demand, similar projection | ~¥260,000 |
| Osaka | 8-12% year-on-year | High growth tied to urban redevelopment | ~¥350,000+ |
| Nagoya | 4-7% year-on-year | Moderate expansion, slower trend | ¥230,000-¥260,000 |
| National Average | 5-8% year-on-year | Continued regional outperformance | Varies by market |
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.
Hiroshima's property market demonstrates robust fundamentals with steady price growth, increasing foreign investment, and strong rental demand in central areas.
The combination of infrastructure improvements, demographic shifts toward urban living, and competitive pricing relative to major metropolitan areas positions Hiroshima favorably for continued property market growth through 2027.
Sources
- Hiroshima Real Estate Market
- Hiroshima Price Forecasts
- Japan Monthly Economic Report
- Japan Commercial Land Price Growth by Area
- Hiroshima Real Estate Trends
- Cost to Purchase a Home in Japan
- Japan Real Estate Market Trends
- Japan Property Investment Guide
- Japan Property Developments
- Mizuho Economic Outlook