How To Identify A Hot Location For Property Investment

  • Advice

Location is the most important aspect when it comes to buying property. Identifying the right location can receive higher amount for the property value.


In Japan, most of the population are commuting everyday with train. Therefore, the proximity to the public transportation facility is one of the most important aspect in choosing the location.


The train station, whether it is the JR line or subway line (in Tokyo), are the most crucial needs for people in Japan. The distance to the train station is one of the most important considerations, and people prefer the location of the property is close enough to the train station that is within a walking distance.


The nodes give better advantage in terms of commuting. Nodes is a station that not only in service for a single line, but has more than one line under operation. In a larger scale, the locations that are close to a transport hub can be perfect choices for property investment. In a transport hub, there are many options that you can commute with, such as trains and buses.


The locations near expressway exits and entrance gates provide easy assessment for car-drivers. in daily life that make it suitable for people who commute with their cars in daily lives. Thus, the expressway assessment is necessary for those who prefer driving in their cars.

Future Development

The current conditions as well as the future plans for the surrounding locations can be the factor that will affect the price growth of the properties and the demand for the properties. Future development may create jobs and desirability for the area as well as people who are living nearby.

Business District

New development of a business district will generate population in the area. People working in that area will looking for a place to live nearby. The more demand of the property will lead to growth in property price.

Education Institution

The education institutions like primary, middle schools and universities will also provoke the raise of the property price. In addition, Properties where are nearby the international schools and universities, the market is usually targeting in the upper-middle class, will also bring the surrounding property price upward.

Specialized Area

In Japan, there are some designed areas for foreigners. For foreigner who lives in Japan, it is nice to live in the areas that make them feel like living in their countries.

Industry Overview

An annual report from the expert of the industry can be accessed easily. Pay attention to the highlights of the report such as property market cycle, is showing where in the cycle is the market’s current position. This will help the property buyers/owners to decide whether it is the right time to buy or to sell the property. The market overview report is usually available quarterly for most cities, which are made by real estate market researchers and advisors.


Yield will go up along with the rent in the area typically. If rents and yields are increasing at the same time, it shows that the location can be a very potential area to build up the price in the future. This is the current average yield data in Japan:CityAverage YieldTokyo4.85%Yokohama5.4%Osaka5.4%Kyoto5.9%Kobe5.8%Sapporo6.0%Fukuoka5.7%

Occupancy Rate

Occupancy rate of rental properties have shown the estimation demand of the property in the area. According to some experts, if the occupancy rate is at 97% or lower, it is considered a good market. The higher number of the unit that are occupied in the area, the easier it will attract tenants.

Supply and Demand

The general term of supply and demand term is applicable in this sense. The area with over-supply of properties indicates the market that has no demand to purchase it. For some experts, this might be considered as an opportunity to buy undervalued property. Nevertheless, it has to come with some considerations for the recovery of future market conditions.

If you have any questions or would like to arrange a viewing, please feel free to contact us!

Contact Us