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Kawaguchi City, as an important satellite city near Tokyo, has become a hot spot for real estate investment in recent years due to the increase of Chinese immigrants and urban redevelopment projects. Since 2015, with the relaxation of student and technical intern systems, the number of Chinese residents in Kawaguchi has surged, forming a stable settlement community.
Kawaguchi is highly favored for its better cost performance compared to the heart of Tokyo, complete Chinese living amenities, and convenient commuting advantages. At the same time, redevelopment projects in and around Kawaguchi Station, such as in Honcho 4-chome and Sakae-machi, have been intensively initiated, which will significantly enhance the residential environment and commercial value.
Brief History and Regional Positioning of Kawaguchi City
Kawaguchi City is located at the southern end of Saitama Prefecture, bordering Tokyo's Kita and Adachi wards, and has the natural advantage of being the "administrative area outside of Tokyo that is closest to the 23 wards of Tokyo." During the Edo period, Kawaguchi was a city of casting (copper and ironware) and gradually transformed into an industrial area in the Showa period. Nowadays, with the decline of manufacturing and the rise in residential demand, Kawaguchi City has gradually evolved into a "residential satellite city."
As a junction for the Keihin-Tohoku Line and the Saitama Rapid Railway Line, Kawaguchi is not only convenient for commuting but has also been undergoing several urban redevelopment projects in recent years. It is gradually transforming from an "industrial town" to a "residential city," attracting a large number of working individuals from the metropolitan area to move in and settle.

Kawaguchi Station Access Map
China's Population Surge: Kawaguchi's "Second Redefinition"
According to the official statistics of Saitama Prefecture, by the end of 2024, the number of Chinese residents in Kawaguchi City has exceeded 25,000, accounting for about 4.5% of the total population. If we only consider the proportion of foreign nationals, the proportion of Chinese is nearly 70%, making it one of the cities with the highest concentration of Chinese residents among Japan's designated cities.

Top 5 Cities By Chinese Population (Excluding 23 wards)
Why do Chinese people choose Kawaguchi?
- Geography: Only a 15-minute commute from Ikebukuro and Shinjuku
- Housing prices: 30-40% lower than central Tokyo, high cost-performance ratio
- Linguistic environment: Chinese restaurant, supermarket, kindergarten, and Chinese tutoring classes are all available.
- Community Effect: The Pioneer Effect Continues to Attract Subsequent Immigrants
Since 2015, with the relaxation of policies for Chinese students and technical interns, along with some early investors becoming "family relocators," Kawaguchi has gradually become a "residential Chinese community" similar to Okubo or the North Exit of Ikebukuro, but with a slower pace of life and a more spacious living environment.
Investment potential of Kawaguchi
Urban Redevelopment: Station Upgrades + Sakaemachi Plan
In recent years, Kawaguchi City has been undergoing a series of large-scale urban redevelopment projects aimed at enhancing urban functions, improving the quality of life for residents, and attracting more investor attention. Recent projects include
- Kawaguchi Station Redevelopment Plan: As a transportation hub in Kawaguchi City, Kawaguchi Station has recently faced challenges due to an increase in passengers and aging facilities. To address these issues, the city government, in collaboration with JR East, has developed a basic plan for the redevelopment of Kawaguchi Station. This plan includes measures such as adding platforms for medium-distance trains, improving the station square, and enhancing transportation connections, aiming to improve commuting convenience and the city's attractiveness.
- Eimachi 3-chome Ginza District Redevelopment Project: This district is located about 300 meters from the east exit of Kawaguchi Station and is a historically rich commercial area. Due to the concentration of old buildings, there are potential risks in terms of disaster prevention and earthquake resistance. The redevelopment project aims to enhance the area's disaster prevention capabilities and commercial vitality by constructing high-rise residential and commercial facilities. The project includes the construction of approximately 480 residential units and commercial facilities, with a total building area of approximately 66,570 square meters.
- Kawaguchi Honcho 4-chome 9-banchi District Redevelopment Project: This project is located approximately 400 meters south of the east exit of Kawaguchi Station, in an area with old wooden houses and factories. The redevelopment plan includes the construction of a 28-story residential building and a 3-story commercial building, with a total of 225 units. The project will also include disaster prevention facilities and open spaces to enhance the area's disaster prevention capabilities and living environment.

Redevelopment Plans Near Kawaguchi
From Urbalytics, it can be seen that between 2025-2027 there are about 20 projects around Kawaguchi with a building area greater than 5,000 square meters, of which 80% are condominiums. It can be anticipated that in the coming years, there will be a continuous influx of people with purchasing power, further driving economic growth.
Real estate prices continue to heat up, nearly doubling in average over 5 years.

Mansion price increased more than 80% in recent 5 years
Through Urbalytics' analysis features, we can see that the price of condominium units near Kawaguchi Station has increased by as much as 80% in five years. The current average is as follows:
- Average price: 43 to 45 million
- Average area: 60~65 square meters
- Average rent: 11,000~12,000 yuan/square meter
- Average return rate: 5.5%~6.0%
The aforementioned average level does not take into account the impact of the age of the house on the overall situation.

Average price for mansions built after 2020
Through Urbalytics' search function, we see that the average price of a new house has already approached 70 million yen, nearly 1.5 times the overall average price.
Written at the end
Kawaguchi is currently in the process of "redefining" itself. On one hand, the growth of the Chinese community is reshaping its cultural and economic structure; on the other hand, urban renewal and infrastructure upgrades are increasingly aligning its real estate values with those of satellite cities within the inner ring of Tokyo.
If you wish to obtain detailed property data, rent curves, and development plan maps for the Kawaguchi area, feel free to visit our platform Urbalytics.jp for more analytical charts.
References
- Kawaguchi City's Population
- Kawaguchi City's redevelopment project