Apartments near Roppongi Itchome Station in central Tokyo have provided an average annualized return of 21.26% over the past 10 years, according to a report by Tokyo Kantei.
When calculating the gross returns, the report looks at the average price of a new apartment in 2012 compared with its resale price in 2022 along with the 10 years of rental income, assuming the apartment was leased to a tenant the entire time.
The resale price of an apartment in this neighborhood has increased by 151.6% since 2012, while rents have increased by 15% over the same period. The average resale price in 2022 was 3.68 million Yen/sqm, making it the most expensive of the 219 locations surveyed.
Roppongi Itchome Station is located near the multi-billion-dollar Azabudai Hills project. This redevelopment has drastically improved the surroundings of the neighborhood and prices of luxury apartments in the vicinity have soared as a result.
Shin-Ochanomizu Station area was in second spot with an average annualized return of 16.15%. Apartment resale prices have increased by 108.1% over the past 10 years and rents have increased by 19.5%.
Source: Tokyo Kantei, May 8, 2023.
