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Hiroshima's property market is experiencing strong momentum as of September 2025.
The city offers attractive residential property prices averaging ¥271,000 per square meter in central areas, combined with solid rental yields of 4-5.5% that outperform Tokyo. Major infrastructure projects like the new JR Station and Micron's DRAM plant are driving property values upward, while foreign investment has surged 45% due to the weak yen and expanding business opportunities.
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Hiroshima's property market shows strong growth with central apartment prices at ¥271,000/sqm and rental yields of 4-5.5%.
Major infrastructure projects including Micron's new plant and station redevelopment are boosting property values, while foreign investment has increased 45% in 2024-25.
| Market Indicator | Current Status (Sept 2025) | Trend/Outlook |
|---|---|---|
| Central Apartment Prices | ¥271,000/sqm | +9% YoY growth |
| Rental Yields (Central) | 4-5.5% | Stable, above Tokyo average |
| Foreign Investment | +45% increase | Continuing to rise |
| Occupancy Rate | 65% (short-term), 80%+ (hotels) | Strong demand |
| Population | 2,058,000 (-0.24% YoY) | Gradual decline, core stable |
| Mortgage Rates | 3.69% (35-year fixed) | Accessible financing |
| 3-5 Year Forecast | 20-30% price appreciation expected | Positive outlook |
What's the current average price per square meter for residential and commercial properties in Hiroshima?
As of September 2025, central Hiroshima residential apartments average ¥271,000 per square meter (approximately $1,817), while suburban apartments are significantly more affordable at ¥170,000 per square meter.
Second-hand apartments in desirable areas range from ¥600,000 to ¥800,000 per square meter, with luxury condominiums commanding ¥1.2 to 1.5 million per square meter. Commercial properties require premium renovation costs of ¥300,000 per square meter and up for central locations.
Land prices across Hiroshima prefecture average ¥141,900 per square meter, making it one of the more affordable major Japanese cities for property investment. The price differential between central and suburban areas creates opportunities for both budget-conscious buyers and those seeking prime locations.
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How have property prices in Hiroshima changed over the past five years, and what's the recent trend in the last 12 months?
Hiroshima property prices have shown consistent upward momentum over the past five years, with existing condominiums up 9% year-on-year as of early 2025.
The most dramatic growth occurred in 2023-2024, when new condominium prices in central areas surged by 42.5%. This trend has continued into 2025, with prime locations maintaining strong upward pressure. Detached homes have experienced more moderate but steady growth of 2-4% annually, primarily in suburban areas.
Rural and outer areas have seen flat or minor price declines, reflecting the broader demographic trends affecting Japan's secondary cities. However, central Hiroshima has bucked this trend due to infrastructure investment and foreign business expansion.
The recent 12-month period has maintained this positive trajectory, with central properties continuing to appreciate while suburban markets stabilize at higher price levels than previous years.
What are the rental yields in central Hiroshima compared to suburban areas?
Central Hiroshima delivers attractive rental yields of 4-5.5% in top locations within Naka and Minami wards, outperforming Tokyo's central average of 3.44%.
Suburban areas offer slightly higher yields around 5%, making them particularly appealing for investors seeking stronger cash flow returns. These yields are considered robust by Japanese standards and reflect strong rental demand across the city.
The yield advantage stems from Hiroshima's combination of reasonable property prices and solid rental demand from both local residents and the growing expatriate population drawn by new industrial developments.
How high is the occupancy rate for both apartments and office spaces right now?
Apartment occupancy rates in Hiroshima show strong demand, with short-term rental properties achieving an average 65% annual occupancy rate from June 2024 to May 2025.
Hotel performance indicators suggest robust accommodation demand, with major city hotels recording occupancy rates of 80.6% to 86.4% in Q2 2025. While specific office vacancy data for Hiroshima isn't published separately, regional analysis indicates stable and high occupancy with limited new supply, creating tight market conditions.
The combination of steady population in central areas and increasing business activity from foreign investment has maintained strong occupancy across both residential and commercial sectors.
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What are the major infrastructure or redevelopment projects planned or underway in Hiroshima that could affect property values?
Several transformative infrastructure projects are reshaping Hiroshima's property landscape as of September 2025.
- JR Hiroshima New Station Building - Completed in 2025, significantly improving city accessibility and transit connectivity
- Central Park Square and waterfront redevelopments - Ongoing projects boosting both residential appeal and tourism infrastructure
- Kure industrial redevelopment - Large-scale projects including the Yamato Museum area enhancement
- DISCO Corporation's Gohara Plant expansion - Major industrial development scheduled for 2026-2028
- Micron's new DRAM manufacturing plant - Set to be operational by 2027, bringing significant employment and economic activity to the southern industrial belt
These projects collectively represent billions in investment and are expected to drive property demand in surrounding residential areas while improving the city's economic profile for long-term growth.
How does Hiroshima's property price growth compare to other regional Japanese cities like Fukuoka or Osaka?
| City | Average Price (City Center/sqm) | Year-on-Year Growth (2025) |
|---|---|---|
| Tokyo | ¥819,000–¥1,116,000 | +10.7% |
| Osaka | ¥477,000–¥875,000 | +2.3% |
| Fukuoka | ¥700,000–¥800,000 | +9% |
| Hiroshima | ¥271,000 | +9% |
What are the current mortgage interest rates in Japan, and how accessible is financing for buyers in Hiroshima?
As of September 2025, Japan's mortgage market offers competitive rates with fixed 35-year "Flat 35" loans at a maximum 3.69% interest rate.
Five-year fixed rates median at 4.11%, while variable rates typically start near or below 1% for promotional offers, though they trend upward with Bank of Japan policy changes. For foreign buyers, financing is accessible but requires higher down payments - typically 20% for residents and up to 50% for non-residents.
Lending is highly regulated but available, with Japanese banks increasingly accommodating foreign investors, especially those with established business ties or employment in Japan. The combination of low rates and available financing makes Hiroshima particularly attractive for leveraged property investment.
How much foreign investment is coming into Hiroshima's real estate market, and is it increasing or declining?
Foreign investment in Hiroshima's real estate market has surged dramatically, increasing by 45% in 2024-25.
This surge is primarily driven by the weak yen making Japanese properties more affordable for international buyers, combined with expanding business opportunities from major industrial developments. International companies establishing operations in Hiroshima are driving demand for both commercial space and executive housing.
The trend is strongly upward and expected to accelerate further as global companies like Micron establish significant presences in the region. Luxury and central segment properties are particularly popular with foreign investors seeking both investment returns and potential relocation properties.
What is the supply pipeline—how many new housing units or commercial spaces are set to come onto the market in the next two to three years?
Hiroshima's new supply pipeline is characterized by constrained residential development in central areas due to land scarcity, but steady suburban expansion with new medium and high-rise projects in transit-accessible wards.
Commercial supply will see significant expansion, particularly in Kure with over 130,000 square meters of new industrial floor space planned for 2026-2028. Office space expansion is more modest, reflecting the city's current status as having stable high occupancy and low vacancy rates.
The vacation rental market continues expanding with 750 active properties as of mid-2025, growing alongside increasing inbound tourism. Overall supply remains relatively tight, supporting continued price appreciation in desirable areas.
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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 are population trends in Hiroshima—are more people moving in, moving out, or is the population stable?
Hiroshima's metropolitan population stands at 2,058,000 as of 2025, showing a gradual decline of 0.24% year-on-year, reflecting broader Japanese demographic trends.
However, this overall decline masks important internal migration patterns. The city core remains stable due to inward migration that offsets outward suburban and rural movement. Young professionals and families continue moving to central areas for employment opportunities, while older residents may relocate to suburban areas or leave the region entirely.
The net effect creates stable demand in central districts where most investment-grade properties are located, while suburban and rural areas face greater population pressure. This trend supports continued strength in central property markets despite the overall metropolitan decline.
What government incentives, tax breaks, or regulatory changes are specifically impacting Hiroshima's real estate market?
Several government incentives are currently boosting Hiroshima's real estate market as of September 2025.
- Tax credits for eco-friendly homes - Extended through 2025 for energy-saving improvements and green building features
- Renovation grants - Cover up to 50% of costs for certain urban or historical home improvements
- No foreign buyer restrictions - International investors face no ownership limitations on residential properties
- Fast-track development approvals - New developments often receive expedited processing when supporting infrastructure goals
- Short-term rental regulations - Local zoning restrictions limit vacation rental expansion, protecting long-term rental markets
These policies collectively support property values while maintaining market stability and encouraging sustainable development practices.
What do local real estate experts and agencies forecast for property values and rental demand in Hiroshima over the next three to five years?
Local experts forecast strong property value appreciation of 20-30% through 2030, particularly for luxury and prime-location properties in central Hiroshima.
Rental demand is expected to remain robust in core areas, with emerging neighborhoods showing the most competitive investment returns. The combination of infrastructure improvements, foreign business expansion, and limited central supply supports this optimistic outlook.
Sustainability trends will increasingly drive market preferences, with eco-friendly properties and green redevelopment projects capturing growing market share, enhanced by government incentives. However, experts caution that suburban and less-connected areas may face headwinds from broader population decline and regional economic challenges.
The consensus among local agencies points to Hiroshima outperforming many regional Japanese markets due to its unique combination of industrial growth, infrastructure investment, and international business expansion.
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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 presents compelling opportunities for investors and residents alike, with strong fundamentals supporting continued growth.
The combination of affordable entry prices, solid rental yields, major infrastructure development, and increasing foreign investment creates a favorable environment for property investment through 2030.
Sources
- Hiroshima Price Forecasts - BambooRoutes
- Hiroshima Real Estate Market - BambooRoutes
- Property Developments Japan
- Hiroshima Property Analysis - BambooRoutes
- Annual Airbnb Revenue in Hiroshima - Airbtics
- Star Asia REIT Market Report
- Japan Interest Rates - Statista
- Micron DRAM Plant Hiroshima - TrendForce