Is headline yield enough to judge a Tokyo property investment?
Answer
No. Headline yield is only a starting point. Actual investment performance also depends on management fees, repair reserves, property tax, leasing costs, vacancy and repairs.
Numbers to check
- Expected annual rent
- Annual fixed and variable costs
- Vacancy and arrears assumptions
- Purchase price and exit assumptions
Using official data
Use MLIT transaction and land-price data to test whether the acquisition price is reasonable, while calculating returns from the property’s own income and expense figures.
Sources and verification
This Q&A uses the same MLIT primary sources as the related Regional Guide and was verified as of September 2, 2026. Recheck current data and property documents for an individual investment.
Official sources & verification
2026-09-02 · 3 sources · 3 primary