According to the Ryugin Research Institute, the average price of a 70 sqm (753 sq.ft) second-hand apartment in Okinawa as of October 2020 was 2.1 times higher than it was back in 2008.
The average price was 31,850,000 Yen, up from an average of 15,300,000 Yen in 2008, resulting in a 108% increase over 12 years. In Fukuoka Prefecture, the average apartment price has increased by 58% over the same time frame, while the greater Tokyo region has seen a 23.6% increase.
The main reasons behind the increase are the tourism boost to Okinawa’s economy, along with low interest rates making housing still within reach despite price increases. The relatively high cost of brand-new apartments has also turned buyers towards the existing market where older apartments are generally cheaper.
The Institute is predicting that apartment prices in Okinawa could drop back into the 20 million Yen range in the future as limited new supply could see the average age of existing apartments become older. As older buildings are typically priced lower than newer ones, they can pull down the average price when they make up a larger share of inventory.
Source: Ryugin Research Institute, December 18, 2020.
