- The average annual taxable income in Osaka City is lower than that of its counterparts like Tokyo 23W and Nagoya, but there is large potential for growth, especially from its relatively low current base.
- Yumeshima will see a long pipeline of developments and projects, including Expo 2025, an integrated resort, and a new train line.
- The integrated resort is expected to be a game changer not only for Osaka but also Japan, serving as a pivot for economic and wage growth.
- Domestic net migration into Osaka City has remained positive albeit dipping slightly during the pandemic. This is expected to grow in the post-pandemic environment.
- While the city’s population has been increasing, this has not been evenly distributed, with central areas seeing significantly more growth than peripheral wards.
- Osaka City has also seen high levels of positive net migration from foreign nationals, who appear to favour central and western wards.
- The residential markets in Osaka City have been popular with investors, and cap rates have compressed more rapidly than in Tokyo.
- Developments like Grand Green Osaka will transform the landscapes of surrounding areas, probably in a similar fashion to what has taken place in Minato.
Prospects are bright for Osaka City
Fundamentals are sound for Osaka City residential markets, with its population growing steadily from both domestic and foreign migration. Major developments in the pipeline, most notably the integrated resort, will be game changers for the city, and eventually the country as a whole. Prospects for Osaka City look bright going forward, with economic and wage growth in sight.
Savills Research & Consultancy