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Hiroshima's property market in 2025 offers exceptional value with central district apartments averaging ¥271,000 per sqm and rental yields reaching 4-5.5%. The city demonstrates strong resilience and moderate long-term growth, making it an attractive option for both lifestyle buyers and property investors seeking better returns than major Japanese hubs like Tokyo and Osaka.
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Hiroshima property prices are 50-70% lower than Tokyo while offering superior rental yields of 4-5.5% compared to Tokyo's 3.4%.
Central apartments show 9% year-over-year growth with strong occupancy rates, while detached houses appreciate at 2-4% annually.
| Property Type | Location | Price Range | Rental Yield | Investment Outlook |
|---|---|---|---|---|
| Central Apartments | Naka, Minami, Nishi Wards | ¥271,000/sqm | 4.5-5.5% | Strong appreciation potential |
| Suburban Apartments | Outer wards | ¥170,000/sqm | 5%+ | Higher yields, lower liquidity |
| Detached Houses | Aki, Asaminami | ¥35-70 million | 4-5% | Family market, slower appreciation |
| New Condos | Central redevelopment zones | Premium pricing | 4-5% | Best resale prospects |
How much does property actually cost in Hiroshima right now, broken down by neighborhood and property type?
As of September 2025, Hiroshima property prices vary significantly between central and suburban areas, with apartments in the city center commanding premium prices.
Central apartments in Naka, Minami, and Nishi wards cost approximately ¥271,000 per square meter ($1,817), making them the most expensive properties in the city. These prime locations offer excellent access to transportation, shopping, and business districts.
Suburban apartments present a more affordable option at around ¥170,000 per square meter ($1,133), offering nearly 40% savings compared to central locations. These properties are typically found in outer wards and residential areas with good community amenities.
Detached houses in popular suburban areas like Aki and Asaminami wards range from ¥35-70 million ($250,000-$500,000+), depending on age, size, location, and available amenities. Newer constructions and properties closer to transportation hubs command higher prices.
Land prices in central redevelopment zones reach premium levels of ¥1.5-3 million+ per tsubo, reflecting the ongoing urban renewal projects and infrastructure investments in these areas.
How have property prices in Hiroshima changed over the past 5–10 years, and what's the short-term versus long-term trend?
Hiroshima's property market has shown remarkable strength over the past decade, with existing condos experiencing 9% year-over-year growth as of 2025.
The most dramatic price increases occurred in the new condo segment, which soared up to 42.5% in top markets during 2023-2024, driven by central city redevelopment projects and infrastructure upgrades that enhanced property values.
Detached houses have maintained steady appreciation of 2-4% annually, though growth rates are slower outside the urban core where demand remains more modest. This consistent but moderate growth reflects the stable family housing market.
Long-term trends show gradual upward momentum supported by ongoing urban investment, demographic shifts toward city living, and sustained buyer interest in Hiroshima's central districts.
Short-term projections indicate continued moderate growth in central zones, while rural areas and older "akiyas" properties may experience flat to slight decline due to demographic pressures and urban migration patterns.
What rental yields can you expect in Hiroshima for apartments versus houses, and in which areas are they strongest?
Hiroshima offers attractive rental yields that consistently outperform major Japanese cities, with central apartments delivering 4-5.5% gross returns.
Central apartments in prime wards provide the most reliable yields between 4-5.5%, with higher returns typically found in mid-range modern units that attract steady tenant demand from students, professionals, and young workers.
Suburban areas and older houses can achieve yields of 5% or higher, making them appealing for investors seeking maximum returns. However, these properties carry increased vacancy risk and lower liquidity compared to central apartments.
The strongest yield areas combine good transportation links with growing populations - particularly emerging districts like Saeki ward, which benefits from recent transport improvements, and family-oriented areas in Aki ward where new developments attract consistent rental demand.
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How high is the occupancy rate for rental properties in different districts of Hiroshima?
Occupancy rates in Hiroshima vary significantly between modern central properties and older peripheral locations, with central wards maintaining the highest tenant retention.
Modern apartments in central wards (Naka, Minami, Nishi) report consistently high occupancy rates due to strong demand from students, professionals, and young families who value proximity to employment centers and urban amenities.
Peripheral and rural areas experience notably higher vacancy rates, particularly in aging housing stock lacking modern amenities like updated kitchens, bathrooms, and energy-efficient features that today's tenants expect.
Properties near major transportation hubs and universities maintain superior occupancy regardless of their specific ward, as connectivity and convenience drive consistent rental demand throughout the year.
Older properties without renovations or modern amenities struggle with occupancy challenges across all districts, highlighting the importance of property condition and contemporary features in maintaining steady rental income.
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What are the main differences in buying an apartment versus a detached house in Hiroshima, both in price and in resale potential?
The choice between apartments and detached houses in Hiroshima involves significant differences in investment characteristics, liquidity, and long-term appreciation potential.
| Aspect | Apartments | Detached Houses |
|---|---|---|
| Initial Investment | ¥271,000/sqm (central) ¥170,000/sqm (suburban) |
¥35-70 million complete properties |
| Rental Demand | High, consistent students & professionals |
Moderate, family-focused longer-term tenants |
| Liquidity | High, faster sales broader buyer pool |
Lower, longer sales periods limited to family buyers |
| Appreciation | Strong in city center 9% YoY growth |
Steady 2-4% annually location dependent |
| Maintenance | Managed services ¥10,000-30,000/month |
Owner responsibility variable costs |
| Market Resilience | Strong against demographic shifts | Vulnerable outside established areas |
How does Hiroshima compare to other major Japanese cities in terms of affordability, rental yield, and growth potential?
Hiroshima stands out as exceptionally affordable compared to Japan's major metropolitan areas while delivering superior investment returns and comparable growth rates.
Property prices in Hiroshima are 50-70% lower than Tokyo or Osaka, with central apartments at ¥271,000 per sqm compared to Tokyo's ¥819,000-1,116,000 per sqm range, making Hiroshima accessible to a much broader range of investors.
Rental yields in Hiroshima significantly outperform major cities, offering 4.5-5.5% compared to Tokyo's 3.4% and Osaka's 3.1-3.5%, providing investors with substantially better cash flow and return on investment.
Growth rates remain competitive, with Hiroshima's existing condos showing 9% year-over-year appreciation, matching or exceeding Fukuoka's performance and approaching Tokyo's 10.7% growth despite much lower entry prices.
This combination of affordability, superior yields, and strong growth makes Hiroshima particularly attractive for investors seeking better returns than those available in overcrowded major metropolitan markets.
What are the taxes, fees, and ongoing costs of owning property in Hiroshima, and how do they affect profitability?
Property ownership in Hiroshima involves several categories of costs that significantly impact investment returns and must be carefully factored into profitability calculations.
Acquisition costs include 3-4% acquisition tax on the property value plus combined registration, legal, and agent fees totaling 5-8%, meaning initial purchase costs can reach 8-12% of the property price before any improvements or furniture.
Annual carrying costs consist of fixed asset and city planning taxes approximately 1.7% of assessed value, which typically runs lower than the purchase price but still represents a significant ongoing expense that reduces net rental yields.
For apartments, monthly management and maintenance fees range from ¥10,000-30,000 depending on building amenities and services, while detached house owners bear full responsibility for all maintenance and repair costs without shared building management.
Additional costs include vacancy insurance, property insurance, and potential repair reserves that vary by location and property type, with older properties generally requiring higher maintenance budgets and more frequent capital improvements.
What is the expected demand from buyers and renters in Hiroshima over the next 5, 10, and 20 years?
Hiroshima's property demand outlook shows strong fundamentals for central areas over the next decade, though rural properties face demographic headwinds that will likely persist long-term.
Short-term demand (5 years) remains robust driven by a youthful labor force, continued urban migration from rural areas, and growing foreign investment interest in Japanese regional cities with strong value propositions like Hiroshima.
Medium-term projections (10 years) indicate stable buyer and renter demand in central wards and well-connected suburban areas, supported by ongoing infrastructure investment and the city's position as a regional economic hub attracting businesses and residents.
Long-term outlook (20 years) shows divergent trends, with central urban areas maintaining demand due to continued urbanization, while outlying rural "akiyas" and peripheral properties face continued depopulation pressures affecting both sales and rental markets.
Foreign investment and demographic shifts toward urban living provide additional demand support, particularly for modern apartments in central locations that align with changing lifestyle preferences and work patterns.
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How resilient is the Hiroshima property market to risks like natural disasters, depopulation, or economic downturns?
Hiroshima demonstrates strong market resilience in core areas, though investors must carefully consider location-specific risks when making property investment decisions.
Natural disaster exposure includes typhoons and occasional earthquakes, but core real estate in established central wards is generally well-built and insured, with modern construction standards providing good protection against typical regional weather events.
Depopulation affects rural and peripheral areas disproportionately, creating a two-tier market where central properties maintain value while outer areas experience declining demand and prices, making location selection critical for long-term investment success.
Economic resilience benefits from Hiroshima's diversified economy, ongoing infrastructure investment, and position as a regional center, providing more stability than purely rural markets while remaining less volatile than major metropolitan areas during economic cycles.
Market performance during recent challenges shows central areas maintaining relatively stable values and rental demand, while peripheral properties face greater volatility and longer recovery periods following economic or demographic pressures.
If you're buying to live, which neighborhoods are best for quality of life, commute, and amenities?
Hiroshima offers distinct lifestyle advantages in different neighborhoods, with central wards providing urban convenience and suburban areas offering family-friendly environments.
Naka, Minami, and Nishi wards deliver exceptional urban lifestyle benefits including proximity to shopping districts, restaurants, cultural attractions, and major employment centers, making daily commutes minimal and providing access to the city's best amenities.
Asaminami and Aki wards provide excellent family living with quality schools, newer residential developments, parks, and community facilities while maintaining reasonable access to central Hiroshima for work and entertainment.
Transportation connectivity significantly impacts quality of life, with properties near major train stations and tram lines offering superior access to both local amenities and broader regional destinations including day trips to other cities.
It's something we develop in our Japan property pack.
If you're buying to rent out, where should you target, what budget makes sense, and which property type works best?
Successful rental property investment in Hiroshima requires targeting specific tenant demographics with appropriate property types in areas with strong rental demand fundamentals.
Central apartments in Naka ward represent the most reliable rental investment, attracting students, young professionals, and singles with budgets typically ranging from ¥40,000-80,000 per month for quality one and two-bedroom units.
Up-and-coming areas like Saeki ward offer excellent value due to recent transport improvements, while established family areas in Aki ward provide steady demand from families seeking modern housing with good school access and community amenities.
Modern, mid-size apartments (1-3 bedrooms) in central or well-connected suburban locations deliver the most resilient rental income, typically generating 4.5-5.5% gross yields with high occupancy rates and broad tenant appeal.
Budget considerations should include properties priced to generate positive cash flow after all expenses, typically requiring gross yields above 5% to cover taxes, management, maintenance, and vacancy reserves while providing acceptable returns.
If you're buying to resell, what property segments and areas are most likely to see appreciation in the medium term?
Medium-term appreciation potential in Hiroshima concentrates in specific property types and locations that benefit from ongoing development trends and demographic shifts.
New or recently renovated condominiums in city center locations offer the strongest resale appreciation potential, particularly properties near transit hubs and new development zones where infrastructure investment drives property values higher.
Central redevelopment areas command premium pricing and show consistent appreciation as urban renewal projects enhance neighborhood desirability and attract new businesses and residents seeking modern urban living options.
Properties close to major transportation improvements and new infrastructure projects typically experience above-average appreciation as connectivity improvements make these areas more attractive to buyers and tenants over time.
It's something we develop in our Japan property pack.
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 in 2025 presents compelling opportunities for both lifestyle buyers and investors seeking superior returns compared to Japan's major metropolitan areas.
With central apartments offering 4.5-5.5% yields at prices 50-70% below Tokyo levels, combined with 9% annual appreciation and strong market fundamentals, Hiroshima delivers exceptional value in Japan's regional property market.
Sources
- Hiroshima Price Forecasts - Bamboo Routes
- Hiroshima Property Market Analysis - Bamboo Routes
- Hiroshima Real Estate Trends - Bamboo Routes
- Hiroshima Real Estate Market Overview - Bamboo Routes
- Old Houses Japan - Hiroshima Real Estate Potential
- Japan Property Portal
- Global Property Guide - Japan Price History
- Property Developments Japan