Real Estate Investment in Chiba! Recommended Areas for Buying Apartments in Chiba Prefecture
Chiba Prefecture, located east of Tokyo, is a popular area due to its excellent access to central Tokyo. Geographically, it features diverse landscapes, including plains in the northwest, hilly areas in the central part, and the Boso Peninsula in the south. The Boso Peninsula faces the Pacific Ocean, boasting beautiful coastlines and rich natural surroundings. Additionally, there are many attractive tourist spots for nature lovers, such as Kujukuri Beach and Yoro Valley.
As an important transportation hub, Chiba is home to Narita International Airport, making it a gateway for many international visitors. Furthermore, Chiba offers a variety of entertainment facilities, including Tokyo Disney Resort and Makuhari Messe, providing plenty of enjoyment for visitors. Chiba Prefecture is a highly attractive area for living, harmonizing urban and natural environments. It is also well-equipped with educational and medical facilities, making it a comfortable region for foreigners. In this article, we will introduce the charm of real estate investment in Chiba Prefecture and recommend areas for buying apartments. Whether for families or singles, Chiba's real estate market caters to diverse needs, making it an area worth considering.
Explaining the Location and Features of Chiba Prefecture
Chiba Prefecture plays a significant role as a bedroom community for Tokyo. Despite its proximity to Tokyo, it also offers a rich natural environment. While the population in the eastern and southern parts is declining, areas adjacent to Tokyo are experiencing population growth due to their excellent access to the city center. Chiba's greatest appeal lies in its ability to offer both the convenience of urban living and the richness of nature. In the eastern part, Kujukuri Beach and the coastal areas of Kamogawa and Tateyama in the south offer opportunities for marine sports such as fishing and surfing. Additionally, residents can enjoy camping and home gardening, allowing for a lifestyle that embraces nature. It's an ideal environment for remote work, where one can enjoy hobbies daily and only travel to Tokyo for meetings or business when necessary.
By understanding the characteristics of each area in Chiba Prefecture, it becomes clear that it is an attractive prefecture with many possibilities for real estate investment, living, and purchasing a second home.
Four Attractions of Real Estate Investment in Chiba
Chiba offers many attractive elements for investors, such as "stable demand" and "development potential." Here, we introduce four compelling points for real estate investment in Chiba.
1. Low Risk as a Bedroom Community for Tokyo
Chiba Prefecture, located to the east of Tokyo, has developed as a bedroom community. It is popular among various generations, including families and singles, offering a well-equipped living environment for different households. Since 2020, the population has continued to increase due to the rising number of foreign residents and the needs of people commuting to Tokyo for work or study. Additionally, with Tokyo Disneyland located in Chiba, it remains highly popular among families, ensuring stable housing demand. Supported by its geographical proximity to Tokyo and stable demand, the real estate market in Chiba Prefecture is considered to have low investment risk.
2. Excellent Transportation Access
Chiba Prefecture boasts an especially well-developed transportation network within the Tokyo metropolitan area, making it an attractive region from a real estate investment perspective. Multiple railway lines, including JR Sobu Line, Keiyo Line, Musashino Line, Joban Line, Tobu Noda Line, Tsukuba Express, Keisei Line, Shin-Keisei Line, and Toyo Rapid Railway, intersect and connect various parts of the prefecture. This extensive transportation network provides excellent access to central Tokyo, making commuting and schooling very convenient. Access to Narita International Airport is also excellent, facilitating business trips and travel abroad. Such superior transportation infrastructure is a crucial factor that enhances the value of real estate. Properties near stations, in particular, are in high demand, ensuring stable rental demand and potential future asset value appreciation.
3. Potential for Population Growth
As of July 1, 2024, the total population of Chiba Prefecture was 6,277,536. While population decline is observed in the southern and northeastern regions, areas adjacent to Tokyo continue to experience population influx. Examining the population by municipality within Chiba Prefecture, Chiba City has the largest population with 984,453 residents, followed by Funabashi City with 648,364 residents, Ichikawa City with 499,589 residents, Matsudo City with 499,337 residents, Kashiwa City with 435,702 residents, and Narashino City with 172,355 residents. The combined population of these seven cities accounts for 54.53% of the prefecture's total population. Population changes by municipality show that Nagareyama City had the highest increase with 25,587 people, followed by Funabashi City with 20,082 people, Ichikawa City with 15,211 people, Matsudo City with 14,813 people, and Kashiwa City with 12,598 people. These cities near Tokyo are steadily increasing their populations, capitalizing on their excellent access to the city center. Another notable trend in recent years is the increase in foreign residents. With the expansion of international companies and educational institutions, many foreigners are moving to Chiba Prefecture. This trend is expected to continue, contributing significantly to population growth.
source: Reiwa 5 Chiba Prefecture Monthly Resident Population Survey Report (Annual Report)
4. Many Areas Undergoing Development
Many areas in Chiba Prefecture are undergoing proactive urban development plans led by the prefectural government. These plans comprehensively promote improvements in living environments, attraction of commercial facilities, and expansion of transportation infrastructure while leveraging the characteristics of each region. Such developments enhance regional attractiveness and encourage population influx, positively impacting rental housing demand. The creation of new jobs and improvements in living convenience are likely to attract young people and families, leading to stable rental demand. Additionally, the expected rise in land prices accompanying development is appealing from a real estate investment perspective. Government-led planned development is expected to achieve sustainable urban growth and contribute to long-term real estate value appreciation.
Six Recommended Cities for Real Estate Investment in Chiba Prefecture
For real estate investment within Chiba Prefecture, areas adjacent to Tokyo are ideal. This article introduces six recommended cities, excluding the prefectural capital Chiba City.
- Nagareyama City
- Kashiwa City
- Funabashi City
- Urayasu City
- Matsudo City
- Ichikawa City
We will introduce the population and attractive points of each city.
Nagareyama City
Nagareyama City, located in the northwest of Chiba Prefecture, is adjacent to the Edo and Tone rivers. With a population of 212,497 (as of July 2024) and excellent access to Tokyo Station in about 58 minutes, the city has rapidly developed, especially after the opening of the Tsukuba Express. It is known as a popular city for families, offering a well-equipped educational environment and childcare support facilities (11 regional childcare support centers). The city balances natural environments with urban functions, featuring lush parks, waterfront spaces, and convenient commercial facilities. These characteristics make Nagareyama a notable investment area with stable population growth and real estate demand. Properties targeting families are expected to have high demand.
Kashiwa City
Kashiwa City, located in the northwest of Chiba Prefecture, has a population of 435,702 (as of July 2024). The city boasts excellent access to Tokyo Station in about 29 minutes and is known for its well-equipped large commercial facilities. It also has aspects of a research and academic city, hosting the University of Tokyo Kashiwa Campus and the National Cancer Center, as well as research and development divisions of IT companies and biotech startups. The city features a harmonious balance of green environments and urban functions. These elements make Kashiwa a notable investment area with a stable population base and diverse demand. Rental properties near stations and research facilities are expected to have high demand.
Funabashi City
Funabashi City, located in the northwest of Chiba Prefecture and facing Tokyo Bay, has a population of 648,364 (as of July 2024). With excellent access to Tokyo Station in about 24 minutes, it has developed as a popular bedroom community. The city offers abundant commercial and cultural facilities, high urban convenience, and a balance of coastal and green environments, making it a well-known comfortable living area. These characteristics make Funabashi a notable investment area with a stable population base and diverse real estate demand. Properties near stations and in redeveloped coastal areas are expected to have high investment value.
Urayasu City
Urayasu City, located in the northwest of Chiba Prefecture and facing Tokyo Bay, has a population of 172,355 (as of June 2024). With a prime location about 23 minutes from Tokyo Station, the city is also famous as the home of Tokyo Disney Resort. In addition to stable tourism demand driven by Disney Resort, the city has high popularity as a new residential area, with a growing population mainly among young families. The city promotes attractive waterfront urban development, making it a desirable place to live. These factors make Urayasu a notable investment area with stable demand for both tourism and residential properties. Properties near stations and resorts are expected to have high profitability.
Matsudo City
Matsudo City, located in the northwest of Chiba Prefecture, is adjacent to Tokyo across the Edo River, with a population of 499,337 (as of July 2024). The city is known for its excellent transportation access, being about 28 minutes from Tokyo Station. Matsudo offers abundant cultural facilities and parks, providing a rich cultural and natural environment within an urban setting. The city is also highly rated for its convenience in daily life due to numerous commercial facilities. These features make Matsudo a notable investment area that can cater to diverse needs. Properties near stations and in convenient areas are expected to have stable demand.
Ichikawa City
Ichikawa City, located in the northwest of Chiba Prefecture and adjacent to Tokyo across the Edo River, has a population of 499,589 (as of June 2024). The city is known for its convenience in commuting to Tokyo, being about 20 minutes from Tokyo Station. With a long history as an educational district, Ichikawa boasts a well-developed educational environment. The city also balances natural and urban functions well, featuring lush parks, waterfront spaces, and convenient urban facilities. These factors make Ichikawa a notable investment area with a stable population base and diverse demand. Properties near stations and educational districts are expected to have high rental demand.
Three Precautions for Real Estate Investment in Chiba
While Chiba has many attractions, it also has areas with limited rental demand and geographical risks. Here are some precautions to consider before starting your real estate investment in Chiba.
Rental Demand Varies by Area
In Chiba, rental demand varies by area. Regions adjacent to Tokyo and areas with excellent access to the city center have high rental demand. Specifically, areas accessible to Tokyo Station within an hour have concentrated rental demand, offering stable prospects. However, in the eastern and southern parts of Chiba, where access to Tokyo is a bit more time-consuming, population decline is observed, and rental demand is not as high. These regions might be more suitable for purchasing a home for a relaxed lifestyle embracing nature or as a second home for enjoying leisure activities, rather than for investment purposes. In real estate investment, focusing on areas with high demand, considering long-term population trends and regional development plans, can increase the likelihood of obtaining stable returns.
Risk of Natural Disasters
When considering real estate investment in Chiba, be cautious of disaster risks in reclaimed land areas such as Urayasu City. These areas are prone to liquefaction during earthquakes, which can cause significant damage to buildings and roads. Additionally, Chiba is geographically vulnerable to typhoons, with a high risk of damage from strong winds and heavy rains. Coastal areas also need to consider the risk of storm surges and flooding. To address these natural disaster risks, thoroughly check hazard maps of the area under consideration and avoid regions vulnerable to disasters. Specifically, refer to liquefaction hazard maps and flood risk maps to choose safer areas. Building earthquake resistance and disaster prevention measures are also crucial factors in selection. Carefully evaluating natural disaster risks and investing with a long-term perspective is essential for safe investments.
Rental Income Tends to Be Lower than in Tokyo and Kanagawa
Compared to Tokyo and Kanagawa, Chiba tends to have lower rental income. However, Chiba has the largest living area among the four prefectures in the Tokyo metropolitan area. This trend is reflected in the rental housing market, where tenants often prioritize living space. These factors can lead to lower investment efficiency per land area, resulting in potentially lower rental income compared to investments in Tokyo or Kanagawa. Understanding these regional characteristics is crucial for developing an effective investment strategy. For example, offering larger living spaces to enhance competitiveness or reducing management costs to improve profitability can be effective strategies suited to Chiba's market.
Three Tips for Successful Real Estate Investment in Chiba
Successful real estate investment in Chiba involves careful area selection and understanding the needs. Here are three tips for successful real estate investment in Chiba.
Focus on Areas Undergoing Redevelopment and Infrastructure Improvement
In Chiba Prefecture, areas undergoing redevelopment and infrastructure improvements offer potential for future value appreciation. For example, Makuhari New City in Chiba City is being developed as an international business hub. Specific projects include the Mitsui Fudosan's "Makuhari Bay Park Mid-Square Tower," set to be completed in February 2024, and new projects like the "Park Well State Makuhari Project." These developments, featuring large-scale urban projects with residential, commercial, and office functions, are expected to continue boosting the region's development and demand.
Additionally, Kashiwa City's "Kashiwa-no-ha Campus" is undergoing advanced city planning. Growing as a research and academic city in collaboration with universities and research institutions, it focuses on themes of environment, health, creation, and exchange, attracting attention for future-oriented urban development. Investing in these areas can offer potential value appreciation from ongoing development and increased rental demand from new population influx. However, be mindful of the possibility of unexpected changes or delays in development plans, and make informed and cautious investment decisions.
Utilize Chiba Prefecture's Rental Support Programs
Chiba Prefecture operates the "安心賃貸支援事業" (Anshin Rental Support Program) to support "housing-secure individuals." Utilizing this program can reduce vacancy risks in property management targeting elderly, disabled, and foreign students. Registering with the support program enhances credibility as a real estate agent and can attract referrals from government and support organizations, increasing the likelihood of securing stable tenants. Utilizing this support program can achieve both social contribution and stable income.
Consider the Needs of Families and Singles When Selecting Properties
To succeed in real estate investment in Chiba, accurately identifying the needs of families and singles is crucial. Areas with excellent access to central Tokyo are highly popular with both groups due to commuting and schooling convenience. Properties near stations are expected to have stable demand. Areas close to Tokyo Disney Resort are also attractive for families who prioritize leisure activities and creating memories with children. Young households, in particular, tend to prefer properties with modern amenities and communal spaces that foster a sense of community. By considering these factors and selecting properties that cater to the lifestyles of your target demographics, you can achieve stable demand and high profitability.
Aug 4, 2024