Japan House Price

Residential Property Price Index rose by 2.4% year on year in August, up from 1.4% in July 2016.

Published monthly by Ministry of Land, Infrastructure, Transport and Tourism, and Japan Real Estate Institute. Updated to the month of September 2016 (published on January 16th, 2017).

Recent data trend:

Residential Property Price Index rose by 2.4% year on year in August, up from 1.4% in July 2016.

By areas, the pace of inflation in the property prices seem higher in the north-eastern part of Japan such as Tohoku and Tokyo area. On the other hand, the market seems less upbeat in the south-western part of Japan such as Kyushu and Osaka. In our view, house prices are expected to increase in the remaining months of 2016. By type of properties, the disparity between condominium and other types of properties continues. While the condominium property prices continued to surge, both price indices for land property and for detached house remain stagnant.

Brief overview of “House Price”

In Japan, the annually-published Land Market Value survey (Ko-ji Chika) has been the representative statistics for real estate prices. In 2013, it surveyed the prices of 26,000 land locations in Japan. However, the statistics suffers a number of shortcomings. The “price” in this survey is an evaluated price, rather than the actual transaction price. It is also a statistic of land price and it does not include price information for condominium. It is also an annual survey, lacking in timeliness.  For more information, visit the official government page. 

The Japanese government developed a new statistic on house prices to fill the gap. The statistic, officially known as “Residential Property Price Index (RPPI)”, is published monthly and it is based on actual transaction data. In order to capture the trend in the market value of houses, the raw data are processed through Hedonic regression to control for the difference in factors such as location. The compiled statistics starting in April 2008 were initially released in August 2012 and currently in a full operational phase starting from March 2015. The RPPI consists of 3 sub-indices, one price index for residential land, the second price index for detached house, and third price index for condominiums. National as well as a number of regional indices are available. In the last 5 years, RPPI has fallen sharply through 2008-09 but started improving after 2013. On the other hand, one of its sub-components, the price index for condominiums, started to rebound as early in late 2009 and the index is currently renewing the highest level since the index started in 2008. For more information, visit the official government page.

The Japan Real Estate Institute “JREI” calculates and publishes the JREI Home Price Indices. They are existing condominium price indices derived from repeat-sales for the Capital region of Japan since June 1993. The Japan Real Estate overtook the publication of the indices in January 2015 from the Tokyo Stock Exchange. For more information, visit the official government page.

For more details, please read our report "A primer on the new house price index"

The Next Release Date: Fourth week of January 2016.

House Price by Regions 1 (Hokkaido, Tohoku, Kanto)

House Price by Regions 2 (Hokuriku, Chubu, Kinki)

House Price by Regions 3 (Chugoku, Shikoku, Kyushu-Okinawa)