Apartment rents and sale prices in Osaka, Japan, are rising the fastest among major global cities. Experts said the real estate market is heating up quickly as large-scale redevelopment projects and expectations for an integrated casino resort (IR) converge.
On the 2nd (local time), Nikkei Asia, citing a survey by the Japan Real Estate Institute (JREI), reported that Osaka's apartment (condominium) rent rose 3.1% over the six months through April this year, the highest increase among 16 major global cities. Over the same period, New York rose 2.4%, Tokyo 1.4%, and London 1.2%. Osaka's new apartment sale prices also climbed 3.3% in the same period, ranking first ahead of New York (2.9%) and Mumbai (2.7%).
In Korea, a "condo" usually refers to a resort facility, but in the U.S. and Japanese real estate markets it means a multiunit dwelling with individual ownership.
Large-scale urban development is cited as the backdrop for Osaka's strong real estate market. The mixed-use development "Grand Green Osaka," taking shape north of JR Osaka Station, is adding a park, a large commercial complex, and ultra-high-rise residential districts. The mixed-use complex "Yodoyabashi Station One," which opened last year, also lifted demand for downtown living. Major corporations, including construction equipment maker Kubota and pharmaceutical company Shionogi, also transferred their headquarters to the area.
An increase in high-income dual-income households and growing demand from corporations for employee housing are also cited as price drivers. In fact, according to real estate information firm At Home, the average monthly rent in Osaka for family-type dwellings with exclusive floor areas of 50–70 square meters was 168,576 yen (1,599,061 won) as of April this year, up 13.7% from a year earlier. That far outpaced the rise in Tokyo's 23 wards (5.8%) over the same period.
According to Hankyu Hanshin Properties, which operates rental condos in Osaka, demand is also growing for one-person dwellings leased by corporations for employees. Nikkei Asia said that as corporations compete to secure talent, employee rental housing is gradually becoming more upscale.
Yoshino Kaoru, a senior researcher at JREI, said, "Changes in Osaka's residential flows are affecting rent increases," and noted, "Preference for downtown living is strengthening."
Investment demand is also increasing. Currently in Osaka, construction of luxury ultra-high-rise apartments is in full swing. In Grand Green Osaka, the 45-story ultra-high-rise apartment being built by Sekisui House and others sold all four top-floor units, each for 4 billion yen (about 37.9 billion won).
The integrated casino resort (IR) targeted to open in 2030 and a new rail line slated to open in 2031 are also stoking investment demand. Nikkei Asia analyzed that wealthy individuals in and outside Japan are purchasing downtown Osaka apartments not only for residence but also for investment, pushing prices higher.