Condo Rental Yields Hit Record Low of 6.50% in May 2026: Income Property Market Trend Report

Kenbiya Inc., an affiliate of LIFULL Co., Ltd., a company committed to addressing social issues through business, and the operator of the real estate investment and income property information site 'Kenbiya' and 'LIFULL HOME'S Real Estate Investment,' has released its Income Property Market Trend Report for May 2026.

The report aggregates data—including gross yields and property prices—on three types of residential income-producing properties (condos, whole-building apartment complexes, and whole-building apartment/condo complexes) registered on Kenbiya to present the latest market trends.

Highlights

National average prices for both individual condos and whole-building apartment complexes are trending upward compared to both the previous month and the same month last year. In the 23 wards of Tokyo, prices for both property types are also rising on both a monthly and yearly basis. While prices for whole-building apartment complexes have risen compared to the same month last year, they have remained flat over the past few months, mirroring the national trend.

### Condos The national average price remains high at 27.15 million yen, showing a significant increase both monthly and yearly. Conversely, the national average rental yield dropped to 6.50%, the lowest level since the survey began in April 2008. Regarding regional average prices, many regions showed monthly gains following the previous month's decline, with the Kansai region hitting a one-year high (20.07 million yen). The Chugoku/Shikoku region saw prices rise for the third consecutive month.

### Whole-building Apartment Complexes Regional average prices hit one-year highs in the Shinshu/Hokuriku and Kansai regions. Kansai saw gains for two consecutive months, showing a significant upward trend of +27.19% compared to the same month last year.

### Whole-building Condo Complexes The national average price rose to 205.15 million yen compared to both the previous month and the same month last year. Regionally, the Tokyo metropolitan area (242.2 million yen) set a one-year high, while the Tokyo, Kanagawa, Chiba, and Saitama area (247.25 million yen) also hit a one-year peak, driving the capital region's figures. Several regions recorded double-digit growth rates compared to the same month last year.

Condo Market (May 2026)

The national average price was 27.15 million yen, the second-highest level since the survey began in April 2008 (+8.73% monthly, +21.21% yearly). The national average yield was 6.50%, setting a new record low since the survey began (-0.13 points monthly, -0.11 points yearly).

Regionally, the Kansai region's price of 20.07 million yen is a one-year high. Monthly, all regions showed gains except for Kyushu/Okinawa. Hokkaido (+25.37%) and Shinshu/Hokuriku (+18.70%) saw significant increases. Prices in the 23 wards of Tokyo rose +10.82% monthly and +22.28% yearly, driving the metropolitan area's figures.

Whole-building Apartment Complex Market (May 2026)

The national average price was 89.27 million yen, showing a flat trend (-1.05% monthly, +7.21% yearly). The national average yield was 8.01%.

Regionally, the Shinshu/Hokuriku (50.68 million yen) and Kansai (92.52 million yen) regions hit one-year highs in average price. Kansai showed strong growth, +27.19% compared to the same month last year.