The new school year and fiscal year in Japan starts in April every year. Because of this, April is the busiest month in Japan for starting school, graduating, inaugurating, and moving. Unlike previous years, this April has seen an unprecedented shortage of real estate properties. In an interview, a Japanese specialized real estate agent said that there is no rent at all in April this year that can be rented to those who want to join the new employees and students who want to go to school, which is unprecedented. Why is there a shortage of housing now?
The new school year and fiscal year in Japan start in April every year. Because of this, April is the busiest month in Japan for starting school, graduating, inaugurating, and moving. Unlike previous years, this April, real estate companies are experiencing an unprecedented shortage of properties.
In an interview, a Japanese specialized real estate agent said that there is no rent at all in April this year that can be rented to new employees who want to join the company and students who want to go on to higher education, which is unprecedented in the history of the country.
The reason why there is such a rare situation where there are no houses available for rent and there is a lack of housing around is attributed to the following reasons
1 March graduation season, the peak of the student housing exchange
March is graduation season for Japanese schools, and a large number of students need to change their residence. Whether they are moving out of the school dormitory or looking for a new shared room, the demand for rentals surges during this time. At the same time, this is also the period when the largest number of new international students arrive, and many international students choose to start their study abroad life at this time. As a result, apartments, studios, and shared housing become hard to come by.
2 Cherry blossom season in March, April, and May, the peak season for travelers
As spring approaches, the most beautiful season in Japan is the cherry blossom season! Every year in March, April and May, thousands of tourists flock to Japan just to catch a glimpse of the cherry blossoms in full bloom. Among these tourists, there are not only Asian tourists, but also international people from Europe and the United States and other places. It is worth noting that many European and American tourists prefer to rent a local house directly instead of choosing a hotel, which further intensifies the competition for housing.
3 Increase in the working and entrepreneurial population
In addition to international students and tourists, more and more people have chosen to work or start businesses in Japan in recent years. Whether for short-term business trips or long-term stays, these same people need a stable place to live. In Japan, most houses do not increase in price as long as you do not move out. As rents have soared in major cities such as Tokyo, Osaka, and others, resulting in tenants being reluctant to move, the number of properties in circulation has become fewer.
4 Soaring Prices Lead to Higher Construction Costs
In addition to the high construction costs due to soaring prices, there are fewer new apartments being built due to the high cost of materials, labor, and so on, which makes housing scarce.
Scarcity of housing causes prices to rise
Since March, landlords have been raising rents due to the imbalance between supply and demand, especially in popular areas. The latest data shows that apartment rents in Tokyo’s 23 wards have risen for two consecutive months as of February 2025, approaching the all-time high set in June 2024, according to the latest data.
In the March 4 morning news, TV Asahi anchor Matsuoka revealed his own moving experience on his show. As the cost of moving has risen sharply the number of properties that can be rented has also dropped dramatically, making renting an apartment akin to stealing a house. A lot of people don’t even go to see the apartment, they just sign the contract. When Matsuoka moved in March 2024, he did the same thing, signing a contract ahead of time, eliminating the need to look at apartments.
On the program, commentator Toru Tamagawa also mentioned that the cost of moving in 2017 was less than 100,000 yen, or about $4,900, and that the cost of moving now has risen tenfold! A family of three moving within the Tokyo metropolitan area costs up to 1.17 million yen or 58,000 yuan!
In fact, in this environment, is very suitable for investment in Japan to buy real estate. Because in Tokyo, Osaka, Nagoya and other cities in the rental market demand is strong, in the long term, as an investment in the landlord is relatively easy to find tenants. And with the increase in the number of foreigners studying and working visas, the demand for rental properties is likely to rise further.
Compared to short-term speculation, Japanese real estate is more suitable for long-term holding, relying on stable rental income to make profits. After all, for many Japanese who have been renting all their lives, the rental market in Japan is relatively stable, and rental yields are generally 36%, which is higher than bank deposit rates. If you want to get more information about Japanese real estate investment, you can add the following customer service inquiries
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Zhuo Zhi Qi Cheng is a well-built investment platform for customers at home and abroad, with our professional knowledge and service attitude of excellence, we provide you with the greatest protection and the most convenient and perfect service for your overseas immigration and investment.
Advantage One We are well versed in overseas investment, study abroad immigration and other businesses, and have a wealth of experience.
Advantage 2 We will avoid the risks of your overseas projects from the legal level. We have a well-known law firm as a permanent legal adviser, a team of lawyers for you to professionally review all kinds of contractual information, and strictly control the risks of your overseas projects.
Advantage 3 We provide a series of perfect follow-up services such as management and maintenance, tax, etc. for your overseas projects, so that you can have a worry-free project throughout the whole process.
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