Osaka from above: published gross rental yields vary sharply between Japanese sub-markets

Japan rental yields in 2026: the published figures, and what comes off them.

Japan rental yields. Published figures. What comes off. Brinkman Data brand card.

// Short answer

The most-cited published figure puts Japan's average gross rental yield at 4.55% in Q1 2026, with Tokyo at 3.27% and Osaka at 4.78%, according to Global Property Guide. Those are gross figures from asking prices and asking rents, not what an owner keeps. The sub-market spread matters more than the average.

Rules and rates as of September 2026. Japan's policy on foreign purchases is under review, so check the dated items again before you sign. Every figure links to its source.

What is the average rental yield in Japan?

Global Property Guide puts Japan's average gross rental yield at 4.55% for Q1 2026, up from 4.34% in Q3 2025. The figures are gross, built from asking prices and asking rents, and the same source says net is typically 1.5 to 2 percentage points lower. These are that source's figures, not a Brinkman Data calculation.

A gross yield is rent before any cost. The costs that come off it are listed further down this page.

What are rental yields in Tokyo and Osaka?

Per Global Property Guide's Q1 2026 data, the average gross rental yield is 3.27% in Tokyo and 4.78% in Osaka. Both are gross figures from asking prices and asking rents. They are citywide averages, and inside each city the spread between sub-markets and unit sizes is wide.

Market (Global Property Guide, Q1 2026)Average gross yield
Japan4.55%
Tokyo3.27%
Osaka4.78%

Why does a citywide yield average mislead in Japan?

Because the spread inside one city is wider than the gap between cities. In the same Global Property Guide data, a central Tokyo one-bedroom shows about 2.8% gross and a two-bedroom in Tokyo's eastern 23 wards about 5.5%. In Osaka, Kita-ku one-bedrooms show about 1.6% and Joto-ku two-bedrooms about 6.3%.

Sub-market (Global Property Guide, Q1 2026)Gross yield
Tokyo, central city, 1-bedroomabout 2.8%
Tokyo, eastern 23 wards, 2-bedroomabout 5.5%
Osaka, Kita-ku, 1-bedroomabout 1.6%
Osaka, Joto-ku, 2-bedroomabout 6.3%

The question that matters is never the city. It is the building, the unit size and the rent it can actually get.

What comes off a gross rental yield in Japan?

Four recurring costs before tax. Fixed asset tax at a standard 1.4% and city planning tax of up to 0.3%, both on the assessed value. The condo management fee (kanrihi) and the repair reserve (shūzen tsumitatekin), both monthly. Then income tax on the net rent, usually part-collected by 20.42% withholding.

Can a foreign owner run a Japanese property as a short-term rental?

Only within the Private Lodging Business Act (minpaku): at most 180 nights a year per property, counted from noon on 1 April, after notifying the prefectural governor or designated city before starting. If the owner does not live on site, management must be entrusted to a registered private lodging administrator. Local ordinances can restrict further.

Osaka City also stopped accepting new applications for its special-zone route, which was not subject to the 180-night cap, from late May 2026 (reports give 29 or 30 May). Properties already certified may continue. Model a Japanese investment unit on a long-term let unless the local rules say otherwise.

How protected are tenants in Japan?

Strongly, on an ordinary lease. Under the Act on Land and Building Leases a landlord needs just cause to refuse renewal of an ordinary residential lease. Landlords who want the property back at the end of the term use a fixed-term lease (teiki shakuya) instead. Decide which you need before you sign a tenant.

If you may want to sell with vacant possession or move in later, the lease type is a decision you make on day one, not on the day you want to sell.

// Buying in Japan?

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Frequently Asked Questions

What is a good rental yield in Japan?
This page does not grade yields. The published reference point is Global Property Guide's Q1 2026 average gross yield of 4.55% for Japan, which the same source says is typically 1.5 to 2 points higher than net.
Is Osaka's yield higher than Tokyo's?
On Global Property Guide's Q1 2026 averages, yes: 4.78% gross for Osaka against 3.27% for Tokyo. The spread between sub-markets inside each city is wider than that gap.
Can I Airbnb my apartment in Japan?
Only under the minpaku rules: a notification before starting, at most 180 nights a year, and a registered administrator if you do not live on site. Local ordinances can restrict it further.
Is rent withheld at source in Japan?
Usually. The payer withholds 20.42% of gross rent paid to a non-resident, except where an individual tenant rents the home to live in. You then file a return.

Header photo: Loggieloggie, CC0, via Wikimedia Commons. All credits: image credits.

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Disclaimer

Brinkman Data Analytics is an independent research service. Not financial, investment, tax, or legal advice. All yield figures are estimates based on historical research data and are not guaranteed. International real estate carries risk of partial or total loss of capital.