OSAKA - Condominium prices in Osaka are rising at a pace that shows no sign of slowing, with units exceeding 100 million yen becoming increasingly common as the city records the world’s fastest rate of condo price growth among major metropolitan areas.
A recent survey released shortly after the close of the Osaka-Kansai Expo ranked Osaka first globally in price appreciation, underscoring a dramatic shift in the city’s real estate landscape.
To understand what is happening on the ground, news Runner visited a company specializing in tower condominium sales and toured a unit adjacent to Grand Front Osaka. The property, offering sweeping views of the new Grand Green Osaka development, is listed at 249.9 million yen. The agent explained that the same unit sold for under 100 million yen when new, meaning its value has more than tripled. Similar increases are spreading through multiple central areas, well beyond Osaka Station’s immediate vicinity.
At a real estate office in Osaka’s Nishi Ward, reporters observed an actual negotiation involving Matsunaga, a buyer in his 30s who works for a listed company and incorporates real estate investment into his broader financial strategy. Matsunaga said prices once capped by a “100 million yen barrier” have now climbed into the 200–300 million yen range, with buyers still expecting further growth. He began investing about ten years ago and has earned an estimated 300 million yen in profits. Last year he won a lottery to purchase a Grand Green Osaka unit for around 120 million yen, which he now hears could sell for about 220 million yen.
Despite perceptions that foreign investors are pushing up prices, real estate firms say they account for less than 10 percent of purchases. Instead, the surge is driven largely by local buyers, both prospective residents and Japanese investors treating property as a long-term asset. An expert familiar with Osaka’s market said price growth is supported by major development plans, including the integrated resort project and redevelopment in areas such as Morinomiya and northern districts, which he expects will continue to expand the city’s economic potential.
The expert guided reporters to the Nakanoshima district, south of Fukushima Station, where a new station on the Naniwasuji Line is set to open in 2031. He said the rise in prices reflects economic fundamentals: as a property’s earning power increases, valuations naturally follow. While the government is considering a system to track the nationality of buyers and industry groups are preparing measures to curb speculative resales, many question whether these steps will be enough to slow the momentum.
With new-build prices rising beyond reach for many households, demand for secondhand units combined with renovations is growing rapidly. Real estate intermediaries report that 80 to 90 percent of clients now consider a used condo plus renovation as an alternative to new construction. One couple, raising a one-year-old child, initially searched for a new-build property in Abeno Ward but quickly found prices unrealistic. They purchased a secondhand unit there in August for about 50 million yen and are spending roughly 17 million yen on layout and kitchen renovations to create their ideal home. They said renovation offers more predictable budgeting compared with the wider—and costlier—options of new construction.
Experts note that Japanese real estate prices remained depressed through the country’s “lost 30 years,” with Osaka becoming especially undervalued. Even with recent increases, they say prices remain low compared with other global cities and are only now approaching what they consider fair market levels. Commentator Kikuchi, however, warned that rising values may require intervention to ensure affordability for residents. He pointed to the bubble era, when Japan imposed heavy capital gains taxes on short-term resales, arguing that similar measures could help cool today’s market.
Source: KTV NEWS
