Average rent drops in Okinawa cities
Okigin Economic Research Institute, a research arm affiliated with Okinawa Bank, announced Friday results of a survey on rents in Okinawa municipalities in 2016.
According to the survey, average rents of all types of apartments, including newly-built and older units, were lower than a year ago. At the same time, the occupancy rate of the units increased in all areas. Officials at the institute concluded that there is a trend to lower the rent in order to increase the occupancy rate.
The average rent of a newly-build apartment with 3 rooms and kitchen or combined living dining kitchen popular among families was ¥76,500, which is 1.2% less than a year ago. The rent for a similar unit in an older building averaged ¥66,400 that is 1% lower than in 2015.
The average rent for an older apartment with 2 rooms and kitchen (or a living dining kitchen) is ¥53,500 that is 2.4% lower than a year before. This type of apartment is popular, and accordingly, there is a large variety of choices and competitive rental market.
The rent for newly-built apartments is increasing in areas such as Sintoshin and areas near Monorail stations in Naha. However, in the areas such as Ginowan and northwards the rents are decreasing because there are too many of them available. Although the rising construction costs and shortage of construction workers is putting an upward pressure on rents, the competition is intense pushing the rents downwards.
For older apartments, the older they are, the lower the occupancy rate and rent. However some owners try to keep the occupancy rate or rent higher by renovating the apartments, installing air-conditioners and providing an Internet access.
The most common renovation is separating the bathroom and toilet, followed by air conditioning, Internet access, and indoor laundry space. Okigin said that in order to keep the rent and the occupancy rate high, owners need to conducts “a market-survey tying up with a property management company and a financial institution from the very first stage.”