Okinawa’s real estate market has been benefiting from a growing population and improving tourist market. As a result, government assessed land prices have increased for the past three years.
In 2013, an apartment priced at 140 million Yen in a brand new building in Naha City had six offers, with the developer picking the lucky buyer from a raffle-type system. In 2015, a 180 sqm block of residential land in Naha’s Shuri district went under contract within a day of being listed for sale. Residential land in the popular Shuri district has increased by approximately 10,000 ~ 15,000 Yen/sqm over the past year to around 100,000 ~ 150,000 Yen/sqm (85 ~ 130 USD/sq.ft).
Demand is coming from both new residents and companies moving into the prefecture, as well as investors buying up apartments to rent out to tenants.
Daikyo Anabuki Real Estate went from developing around 800 ~ 900 apartments a year in 2011 to an annual supply of 1,200 ~ 1,350 new apartments over the past 2 ~ 3 years. Even though construction costs have increased by about 30%, apartments are still selling well to consumers.
Milco Mansion Kenchomae, a 52-unit condominium near the Okinawa Prefectural Office in Naha sold out within the first 3 months of sales in 2014. The building is due for completion in May 2016. Several of the buyers were from outside of Okinawa and purchased units in the 30 million Yen price range without even visiting the local show room.
Source: Okinawa Times, March 24, 2016.