Japan rental yields: 7.91% on apartment buildings in Q3 2026
Gross yields on whole apartment buildings fell to 7.91% from 8.01%, a 10-year low, while average asking prices in all three categories hit 10-year highs.
The facts
- Gross yields on whole apartment buildings listed for sale averaged 7.91% in the third quarter, down from 8.01% in the previous quarter, which Kenbiya reports as a 10-year low.
- The national average asking price for a whole apartment building was 90.79 million yen, 6.75% above a year earlier and 0.83% above the previous quarter.
- Individual condominium units averaged 29.02 million yen nationally, up 9.22% on the quarter, with a gross yield of 6.65% against 6.61% in the previous quarter.
- In Tokyo's 23 wards, individual condominium units averaged 41.49 million yen, up 13.30% on the quarter, according to Kenbiya.
- Whole condominium buildings averaged 205.41 million yen, up 0.49% on the quarter, with a gross yield of 7.44% against 7.39%.
- Kenbiya reports average asking prices at 10-year highs in all three categories.
What it means for your money
- Every category now asks a 10-year-high price. Yields have not risen to match.
- Rental income is the other half of the arithmetic, and in Tokyo it starts from a high base: Glopra records $33.48 a square metre a month in asking rent in the city's 23 wards, against a purchase price of $11,800 a square metre.
- The yield direction is not uniform: condominium units edged up to 6.65% from 6.61% and whole condominium buildings to 7.44% from 7.39%, while whole apartment buildings fell to 7.91% from 8.01%.
- For an owner selling into this, 10-year-high asking prices are the favourable side — but these are prices sellers ask, not prices buyers paid.
What to watch
- The figures are asking prices and listed gross yields for properties registered on Kenbiya between 1 July and 30 September 2026, not completed transactions, and the release publishes no sample size.
- Kenbiya's three categories — individual condominium units, whole apartment buildings and whole condominium buildings — are the publisher's own segments and are not interchangeable.
- Fudosan Keizai publishes its September and first-half condominium market data on 20 October and Tokyo Kantei its used-condominium price series on 22 October, both covering different segments.
Sources: Kenbiya https://prtimes.jp/main/html/rd/p/000000950.000033058.html; LIFULL https://lifull.com/news/50717/