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What do the latest numbers reveal about Kyoto’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Kyoto, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Land prices in Kyoto's historic districts increased by 4-5% in 2024 compared to the previous year
In 2024, land prices in Kyoto's historic districts grew by 4-5% compared to the previous year.
Kyoto's charm and cultural allure make its historic districts a hot spot for property buyers. The demand is high, but the available land is scarce, creating a perfect storm for rising prices. Both local and international buyers are eager to own a piece of this iconic city, driving up the competition.
Since 2015, Kyoto's real estate market has been on an upward trajectory. Reports highlight a steady growth in property values, especially in middle-aged apartments and land. This trend underscores the city's robust market environment, making it a promising investment for potential buyers.
Investors are particularly drawn to Kyoto's unique blend of tradition and modernity. The city's historical significance adds a premium to properties, making them not just homes, but pieces of history. This allure is a significant factor in the consistent price hikes.
Moreover, the limited availability of land in these districts means that any property that comes on the market is quickly snapped up. This scarcity is a key driver of the price increases, as buyers are willing to pay a premium for the opportunity to own property in such a coveted location.
For those considering a purchase, understanding these dynamics is crucial. Kyoto's market is not just about buying property; it's about investing in a lifestyle that blends the past with the present.
2) Demand for compact apartments for singles in Kyoto rose by 5% in 2024
In 2024, Kyoto experienced a 5% rise in demand for compact apartments perfect for singles.
One major factor is the city's vibrant student scene. With prestigious institutions like Kyoto University and Ritsumeikan University, the student population here is notably higher than the national average. This influx of students creates a strong need for rental properties that cater to single occupants.
Kyoto's allure as a tourist hotspot also plays a significant role. The city draws in over 50 million tourists each year, many of whom are on the lookout for short-term and long-term rental options. Compact apartments are especially attractive to single travelers, which further fuels the demand.
Adding to the mix is Kyoto's dedication to preserving its historical charm. This commitment limits new construction projects, leading to a scarcity of new developments. As a result, the competition for existing rental properties, including compact apartments, intensifies.
Kyoto's cultural allure and limited new construction make it a unique market. The city's charm and historical significance mean that new developments are rare, pushing more people to seek out existing properties.
For anyone considering a property investment in Kyoto, understanding these dynamics is crucial. The combination of a large student population, a thriving tourism industry, and limited new construction creates a unique demand for compact apartments.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Residential properties in Kyoto's student districts reached a 95% occupancy rate in 2024
In 2024, residential properties in Kyoto's student districts achieved an impressive occupancy rate of 95%.
This high occupancy rate is largely due to the strong demand for rental properties, driven by the large number of university and junior college students in the area. Kyoto is home to several major universities, such as Kyoto University, Ritsumeikan University, and Doshisha University, which significantly contribute to the student population.
The student population ratio in Kyoto is about 10%, which is notably higher than the national average of approximately 3.3% in designated cities. This demographic characteristic creates a strong demand for rental properties like apartments and studio apartments, ensuring rental stability and minimizing vacancy risks.
Sources: Axross JP
4) Luxury single-family homes in Kyoto sold for ¥120 million to ¥150 million on average in 2024
In 2024, luxury single-family homes in Kyoto sold for an average of ¥120 million to ¥150 million.
This price range was largely due to a surge in demand from both local and international buyers. Kyoto's allure lies in its rich cultural and historical significance, making it a prime spot for those seeking unique and prestigious properties. The city's booming tourism industry, attracting over 50 million tourists annually, and Japan's open policy towards foreign investment, which allows international buyers to purchase properties without significant restrictions, further fueled this demand.
Another factor driving up prices was the limited supply of luxury homes in prime areas like Gion and Arashiyama. Buyers were eager to pay a premium for the chance to own a piece of Kyoto's heritage, including traditional Machiya and Kominka homes. The scarcity of available properties, especially near cultural landmarks such as Gion and Higashiyama, made these areas particularly sought after, pushing prices even higher.
Owning a home in Kyoto is not just about the property itself; it's about the lifestyle and prestige that come with it. The city's unique blend of ancient traditions and modern conveniences makes it a desirable location for those looking to invest in luxury real estate. This combination of factors has created a competitive market where buyers are willing to pay top dollar for the right property.
For those considering purchasing a luxury home in Kyoto, it's essential to understand the dynamics of the market. The high demand and limited supply mean that properties can sell quickly, and prices can fluctuate based on various factors, including changes in tourism and foreign investment policies. Being informed and prepared can make all the difference in securing a property in this competitive market.
Whether you're drawn to Kyoto for its cultural heritage, its vibrant tourism scene, or its investment potential, the city's luxury real estate market offers a unique opportunity. With the right approach, you can find a property that not only meets your needs but also provides a valuable investment for the future.
Sources: Century 21 Rise, Real Estate Japan
5) Kyoto's homeownership rate was about 62% in 2024, slightly below the national average
In 2024, Kyoto's homeownership rate was about 62%, just a bit below Japan's national average.
Looking back, Japan's homeownership rate was 61.20% in 2018, showing a steady trend with only a slight dip from 61.70% in 2013. This consistency indicates that the national average likely remained stable by 2024.
Regional differences are quite telling. For instance, in 2023, Akita Prefecture boasted a high homeownership rate of 77.1%, while urban areas like Okinawa and Tokyo had much lower rates, at 42.6% and 44.7% respectively. These figures illustrate how urban centers, such as Kyoto, often have lower homeownership rates due to factors like increased rental demand.
Kyoto, being an urban hub, naturally aligns closely with the national average but tends to be slightly lower, around 62%, influenced by its city dynamics.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
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6) Monthly apartment rents in Kyoto rose by an average of 2% annually from 2020 to 2024
The rental market in Kyoto has been on the move, with average apartment rents rising by 2% annually from 2020 to 2024.
Back in 2021, the average rent for an apartment in Kyoto was ¥83,523, or about $759 USD. This figure varied significantly based on the size and location of the property, which often led to an overall increase in average rents as certain types of properties became more sought after.
By the first quarter of 2024, average rents in Kyoto had surpassed pre-pandemic levels for the first time, showing a notable gain of +14.0%. This upward trend in the rental market aligns with the steady 2% annual increase observed over the years.
Several factors have contributed to this trend. The demand for specific property types has grown, pushing up average rents. This demand is influenced by the city's unique blend of traditional charm and modern amenities, attracting both locals and expatriates.
Moreover, Kyoto's appeal as a cultural and educational hub has played a role. The presence of prestigious universities and historical sites has made it a desirable place to live, further driving up rental prices.
As a potential property buyer, understanding these dynamics can help you make informed decisions. The consistent rise in rents suggests a robust rental market, which could be beneficial if you're considering investing in property here.
Sources: CBRE Japan Retail MarketView Q1 2024, Real Estate Japan, RE/MAX Apex
7) Residential transactions in Kyoto made up 11% of Kansai's total property sales in 2024
In 2024, Kyoto's residential transactions made up 11% of the Kansai region's total property sales.
Kyoto's charm is undeniable, with its rich cultural heritage and UNESCO World Heritage status drawing in buyers from all over. This allure makes it a hot spot for property investment, naturally boosting the number of transactions.
Economic conditions in the Kansai region also played a part. If Kyoto enjoyed better employment rates and economic growth than its neighbors, it would naturally see more property sales.
Another factor is the availability of properties. In 2024, if Kyoto saw new developments or a high turnover of properties, it would lead to more transactions.
These elements combined to give Kyoto a significant slice of the property market pie in Kansai. The city's unique appeal and favorable conditions made it a prime choice for buyers.
Sources: Remax Apex December Report, Remax Apex November Report, Remax Apex February Report
8) Second-hand property prices in Kyoto increased by 3-4% on average in 2024
In 2024, second-hand property prices in Kyoto increased by 3-4% on average.
This rise is part of a decade-long upward trend in Kyoto's real estate market. The city’s allure, with its rich cultural and historical significance, has attracted both local and international buyers. This demand, coupled with a limited supply of properties, has been a major driver of price increases.
Middle-aged and older homes have seen a particularly notable price hike. For example, the average price of a middle-aged home jumped from ¥2,915 million in August 2023 to ¥3,350 million in August 2024. This change reflects the 3-4% increase that aligns with the overall market trend.
Several factors contribute to this price surge. Properties near cultural landmarks are in high demand, and the limited new property supply, due to preservation efforts, adds to the scarcity. Additionally, international buyers are increasingly interested in prestigious neighborhoods like Gion and Higashiyama, often willing to pay a premium.
Kyoto's unique blend of tradition and modernity makes it a desirable location for property investment. The city's efforts to preserve its historical sites mean that new developments are rare, further driving up the value of existing properties. This scarcity, combined with the city's global appeal, continues to push prices upward.
As a potential buyer, understanding these dynamics can help you navigate the market. Whether you're drawn to Kyoto for its cultural heritage or its investment potential, the city's real estate market offers unique opportunities. Keep in mind that the demand for properties in Kyoto remains strong, making it a competitive market.
Source: C21 Rise
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.
9) In 2024, two-bedroom apartments in Kyoto rented for ¥120,000 to ¥150,000 monthly
In 2024, the average monthly rent for a two-bedroom apartment in Kyoto ranged from ¥120,000 to ¥150,000.
Back in 2021, renting a two-bedroom place, like a 2LDK, cost around ¥95,209. This was already considered high compared to smaller apartments. Fast forward to 2023, and the demand for bigger living spaces in urban spots like Kyoto shot up. This surge, along with inflation and the rising cost of living, likely nudged the average rent for two-bedroom apartments even higher.
Living near key areas, such as Kyoto Station, can really hike up the rent. Proximity to such central locations often means significantly higher rental prices, which in turn affects the overall average rent range. This is something to keep in mind if you're considering a move to the city.
Rent prices in Kyoto aren't uniform; they vary across different wards and apartment layouts. While some neighborhoods might still be affordable, others have seen significant rent increases. This variability helps explain why the rent range for two-bedroom apartments could have reached between ¥120,000 and ¥150,000 in 2024.
Understanding these trends is crucial if you're thinking about buying property in Kyoto. The city's rental market is influenced by several factors, including demand for larger spaces and proximity to central areas. These elements contribute to the fluctuating rent prices across the city.
So, if you're eyeing a property in Kyoto, consider how these factors might affect your investment. The rental landscape is shaped by both economic conditions and location-specific demand, making it essential to stay informed about current market trends.
Source: Real Estate Japan
10) Properties near Kyoto's tourist hotspots were rented for an average of 15-20 days monthly in 2024
In 2024, properties near Kyoto's tourist hotspots were rented out for an average of 15-20 days per month.
Kyoto's rich cultural and historical allure draws tourists globally, creating a high demand for accommodations near its famous sites. This demand naturally leads to frequent rentals in these areas.
The short-term rental market in Kyoto is booming, with strong occupancy rates indicating that properties in prime locations are highly sought after. Although exact rental day data isn't available, the trend is clear.
In areas like Gion, known for their cultural richness, rising property prices and rental trends suggest a competitive market. This competition aligns with the frequent rental patterns observed near tourist hotspots.
11) Residential properties in Kyoto's outer districts rose by 2-3% in 2024 due to more suburban migration
In 2023, Japan saw a shift as younger generations moved from big cities to rural or suburban areas.
This trend, known as counterurbanization, was driven by a desire for better living conditions and personal fulfillment. While Kyoto wasn't specifically mentioned, this movement was happening nationwide, affecting various regions.
Kyoto's real estate market is often influenced by its cultural and historical significance, which typically boosts property values in central and historic districts. However, the outer districts of Kyoto, usually overlooked, began to see changes due to this broader trend.
Tourism plays a big role in Kyoto's real estate, with high demand for properties in popular tourist areas. Although this demand usually targets central locations, the growing interest in living outside the city center might have contributed to the appreciation of residential properties in the outer districts.
In 2024, residential properties in Kyoto's outer districts appreciated by 2-3% due to increased suburban migration. This shift reflects a broader trend of people seeking less crowded living spaces.
As more people moved to these areas, the demand for housing increased, leading to a rise in property values. This change highlights the impact of suburban migration on real estate markets.
Sources: UNDP Document, Heritage Homes Japan
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12) A three-bedroom house in suburban Kyoto cost between ¥45 million and ¥60 million in 2024
In 2024, the average cost of a three-bedroom house in suburban Kyoto was between ¥45 million and ¥60 million.
This price range highlights a notable increase in property values, driven by high demand and limited supply. Kyoto's rich cultural and historical significance adds to its appeal, making it a sought-after location for both local and international buyers.
Suburban Kyoto offers a unique blend of affordability and convenience, attracting many potential homeowners. The proximity to amenities and cultural landmarks makes these areas particularly desirable. As a result, the demand for properties near historical sites has been especially strong.
The specific location within suburban Kyoto can significantly impact property prices. For example, homes closer to popular attractions like the Kamo River or Kiyomizudera temple often have higher price tags. This pattern aligns with the overall trend of rising property values in the city.
Buyers are increasingly drawn to areas that offer both cultural richness and modern conveniences. This combination makes suburban Kyoto a prime choice for those looking to invest in real estate. The upward trend in property prices reflects the growing interest in these vibrant neighborhoods.
As the demand continues to rise, potential buyers should be aware of the factors influencing property values. Understanding the dynamics of the market can help in making informed decisions. The allure of Kyoto's suburban areas remains strong, with prices steadily climbing as more people seek to call this historic city home.
Sources: C21-Rise, Toyokeizai.net, Real Estate Japan
13) Kyoto’s average property tax rate is about 1.4% of the property value annually
In Kyoto, the average property tax rate is about 1.4% of the property's value annually.
This rate is part of Japan's Fixed Asset Tax, which is the main property tax in the country. The standard rate of 1.4% applies to the property's assessed value, making it a key factor in calculating taxes. While the rate might change based on the type and location of the property, the standard rate is a reliable benchmark.
Every three years, properties are reassessed to ensure the tax aligns with current market values. This reassessment helps keep the tax rate relevant to the property's market conditions, providing a fair and updated tax amount.
If you buy a property in the middle of the year, you'll pay a pro-rata amount. This means you'll pay a portion of the annual tax that matches the time you own the property. This system ensures that the average tax rate stays around 1.4% for most properties in Kyoto.
Understanding these details can help you plan your finances better when considering a property purchase in Kyoto. The consistent reassessment and pro-rata system are designed to keep the tax fair and manageable.
Sources: Understanding Property Taxes in Japan, Tax Rate in Japan for Foreigners
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.