Should you buy property in Hiroshima now?

Authored by the expert who managed and guided the team behind the Japan Property Pack

Everything you need to know before buying real estate is included in our Japan Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Hiroshima. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Hiroshima, Tokyo, and Osaka. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average property prices in Hiroshima compared to last year and five years ago?

Central Hiroshima apartment prices have reached ¥271,000 per sqm ($1,817) as of September 2025, showing a strong 9% increase from last year.

New apartment buildings in downtown areas have experienced even more dramatic growth, with some developments showing up to 42.5% price increases year-on-year. This surge reflects strong demand for modern units in prime locations.

Looking back five years to 2020, central Hiroshima property prices have increased by 20-30% in aggregate. This represents substantial appreciation that outpaces many other Japanese cities outside Tokyo and Osaka. The growth has been particularly concentrated in well-connected central districts.

Suburban areas show more moderate price movements, with current averages around ¥170,000 per sqm ($1,133). Rural surrounding areas remain below ¥141,900 per sqm ($948) and have seen minimal change or slight declines over the same period.

It's something we develop in our Japan property pack.

How do property prices vary between central Hiroshima, suburban districts, and rural surroundings?

The Hiroshima property market shows clear geographic price stratification with significant differences between urban and rural areas.

Central Hiroshima districts including Naka, Minami, and Nishi Wards command premium prices at ¥271,000 per sqm. These areas benefit from superior infrastructure, walkability, and proximity to business centers and amenities. New developments in these central locations often carry additional premiums above the average.

Suburban districts such as Saeki and Aki Wards offer more affordable entry points at approximately ¥170,000 per sqm. These areas provide good value for families and investors seeking stable returns, particularly near transit nodes and planned infrastructure improvements.

Rural surrounding areas present the most affordable options below ¥141,900 per sqm but face demographic headwinds. These locations often experience outmigration to urban centers, resulting in oversupply and minimal price growth or even declines.

The price gap between central and rural areas continues widening as urban amenities and job opportunities concentrate in core districts.

What is the short-term forecast for property values in Hiroshima over the next 12 to 24 months?

Central and luxury property segments in Hiroshima are projected to appreciate 5-8% annually over the next 12-24 months.

Several factors drive this positive short-term outlook including continued foreign investment attracted by the weak yen, ongoing infrastructure upgrades like the JR Hiroshima New Station Building completion, and constrained downtown supply. International buyers find Japanese real estate particularly attractive at current exchange rates.

New condominium developments in central districts are expected to maintain strong pricing power due to limited land availability and high construction costs. Premium locations near transportation hubs and redevelopment zones should see the strongest appreciation.

Suburban markets are forecast to remain stable with minor increases of 1-3% annually. These areas benefit from steady local demand but lack the foreign investment and supply constraints driving central district growth.

Rural areas are expected to continue experiencing flat or declining prices as demographic trends and limited economic opportunities persist in these locations.

What is the medium-term outlook for Hiroshima real estate over the next 3 to 5 years?

Forecasts suggest cumulative growth of 20-30% in central Hiroshima by 2030, particularly in areas benefiting from ongoing redevelopment and infrastructure improvements.

Government investment in urban revitalization, green building initiatives, and improved transit connections supports sustained growth in core districts. The city's strategic position and diversified economy provide fundamental support for medium-term appreciation.

Areas near the waterfront redevelopment projects and energy-efficient housing initiatives in suburbs like Aki Ward are positioned for above-average growth. These locations benefit from both improving infrastructure and changing preferences toward sustainable living.

Urban migration patterns favor centrally located real estate as younger demographics seek employment and lifestyle opportunities in core districts. This demographic shift supports continued demand for city-center properties.

Medium-term growth will likely concentrate in well-connected areas with modern amenities, while peripheral locations may struggle to maintain values without significant redevelopment or economic revitalization efforts.

What are the long-term demographic and economic trends that could influence Hiroshima's property market in the next 10 to 20 years?

Japan's national population decline presents the most significant long-term challenge for Hiroshima's property market, particularly affecting peripheral areas.

However, Hiroshima's economic diversification into technology and manufacturing sectors, combined with proactive urban development policies, positions the city better than many regional Japanese centers. The city's role as a major transportation hub and cultural center provides resilience against demographic headwinds.

Rising demand for eco-friendly and energy-efficient housing aligns with government sustainability initiatives and could sustain values for properties meeting these standards. Green building certifications and energy efficiency are becoming increasingly important for both domestic and international buyers.

Downtown areas are likely to maintain value through continued urbanization and concentration of economic activity, while rural and distant suburban areas face significant risks from depopulation and infrastructure maintenance challenges.

The city's strategic location for international business and tourism, combined with ongoing infrastructure investment, supports long-term viability for core urban real estate markets.

How do price trends differ between apartments, single-family homes, and commercial properties?

Property Type	Current Trend	Annual Growth	Best Locations
New Apartments	Strongest growth	9-40% (city center)	Central districts
Existing Condos	Solid appreciation	9% year-on-year	Near transit/amenities
Detached Homes	Moderate growth	2-4% annually	Suburban areas
Rural Houses	Declining/stable	0% or negative	Limited opportunities
Commercial Properties	Location-dependent	Variable	Tourism/transit zones

What are the rental yields right now across different areas and property types in Hiroshima?

Central Hiroshima offers gross rental yields of approximately 4.5%, which compares favorably to Tokyo's city average of 3.44%.

Suburban districts provide even more attractive yields of up to 5.0%, particularly in areas with strong commuter demand or family-friendly amenities. These locations offer good value for yield-focused investors.

Rental rates in central Hiroshima average ¥50,700 per month ($335) for one-bedroom apartments and ¥110,000 per month ($724) for three-bedroom units. Suburban properties rent for approximately ¥35,000 per month ($231) for comparable one-bedroom units.

Rural areas present lower yields with higher vacancy risks due to limited tenant demand and ongoing population decline. These locations require careful analysis of local employment and demographic trends.

New apartment buildings in premium locations command rent premiums but also require higher purchase prices, resulting in yields similar to existing properties but with better long-term appreciation potential.

How does demand from tenants compare with supply across the city and suburbs?

Central Hiroshima experiences strong rental demand driven by employment opportunities, urban amenities, and foreign residents working in the city's growing business districts.

Supply constraints in city-center locations due to land scarcity and zoning restrictions support both rental rates and property values. Limited new construction relative to demand creates favorable conditions for property owners.

Suburban areas show more balanced supply-demand dynamics with adequate housing stock for local needs. These areas attract families and professionals seeking more space and value, supporting steady rental demand.

Rural surroundings often face oversupply situations due to outmigration and aging populations. Many properties in these areas experience extended vacancy periods and difficulty finding quality tenants.

Foreign investment and corporate relocation trends increasingly favor central and well-connected suburban locations, further tightening supply in desirable areas while bypassing peripheral markets.

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.

What government policies, infrastructure projects, or urban development plans could impact property values in Hiroshima soon?

The JR Hiroshima New Station Building completion in 2025 represents a major catalyst for property values in adjacent central districts.

Waterfront redevelopment projects including the Yamato Museum area improvements are raising desirability and property values along Hiroshima's waterfront corridors. These initiatives create new amenities and improve the city's appeal to residents and tourists.

Green urban initiatives and energy-efficient housing programs in areas like Aki Ward support property values while aligning with sustainability trends. Government incentives for eco-certified buildings encourage modern development standards.

Railway improvements and expanded public transportation access benefit suburban districts by improving connectivity to central employment and commercial areas. These infrastructure investments support property values in previously less accessible locations.

The national Indo-Pacific infrastructure fund allocation of $75 billion is expected to accelerate local upgrades and support development of eco-certified buildings throughout the region.

What budget ranges are most attractive for investors and homeowners right now in Hiroshima?

Detached suburban houses in the ¥25-35 million range ($179,000-$250,000) offer good value for families and investors seeking stable appreciation with lower entry costs.

Central apartment investments require higher budgets but offer superior growth potential and liquidity. New condominium developments in prime locations command premium prices but provide the best positioning for capital appreciation.

Mid- to upper-range city-center apartments present the optimal balance of yield potential and growth prospects for serious investors. These properties benefit from both rental income and appreciation potential.

Budget-conscious investors can find opportunities in well-located suburban properties near transit improvements or planned developments. These areas offer growth potential at more accessible price points.

Ultra-premium segments above ¥50 million target international buyers and affluent locals but require careful market timing and location selection to justify the investment.

If you want to buy for living, renting out, or reselling, which areas and property types offer the best positioning today?

For owner-occupants prioritizing lifestyle and amenities, central Hiroshima districts provide the best access to urban conveniences, cultural attractions, and employment opportunities.

Investors focused on rental income should target city-center apartments and new condominiums offering strong yields around 4.5% plus appreciation potential. These properties attract both domestic and international tenants.

Resale-focused buyers should concentrate on new builds in central districts and areas near infrastructure improvements or waterfront redevelopment. These properties offer the best liquidity and appreciation prospects.

Select suburban locations in Saeki and Aki Wards near transit nodes provide good value for families seeking space while maintaining reasonable commute times and stable property values.

It's something we develop in our Japan property pack.

What risks should buyers consider now, such as natural disaster exposure, population decline, or economic shifts?

1. **Natural Disaster Risk**: Hiroshima faces moderate earthquake and typhoon exposure, though significantly less than Tokyo or coastal areas. Property insurance and building codes address most concerns, but buyers should consider disaster resilience in location selection.2. **Population Decline Impact**: Rural and some suburban areas face significant demographic challenges with aging populations and outmigration. Focus on core districts with job growth and amenities to mitigate this risk.3. **Currency and Economic Volatility**: Foreign buyers benefit from current yen weakness, but currency shifts could affect investment returns. Domestic economic stagnation could reduce local buying power and demand.4. **Vacancy and Liquidity Risks**: Rural and peripheral properties experience much higher vacancy rates and longer selling times. Concentrate investments in areas with strong fundamentals and multiple demand sources.5. **Infrastructure Dependency**: Property values increasingly depend on transportation connections and urban amenities. Areas without planned improvements or existing infrastructure face stagnation risks.

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.

Sources

1. BambooRoutes - Hiroshima Price Forecasts
2. International Investment - Japan's Real Estate Market 2025
3. BambooRoutes - Hiroshima Real Estate Trends
4. Global Property Guide - Japan Price History
5. Tokyo Portfolio - Japan Real Estate Market Trends
6. Real Estate Japan - Expert Market Insights
7. E-Housing Japan - House Prices in Japan
8. Numbeo - Hiroshima Property Investment Data