Kikuyo real estate faces vacancies despite TSMC expansion

In Kikuyo, Kumamoto Prefecture, a localized real estate imbalance is emerging following the expansion of the semiconductor industry led by TSMC and its subsidiary, JASM. While the arrival of the semiconductor giant drove up land prices and sparked a construction boom, many newly built luxury rental apartments are facing high vacancy rates.

Developers specifically targeted high-income employees relocating from Taiwan, constructing large 3LDK apartments with monthly rents around 150,000 yen. However, this demand has not materialized as expected. Some reports suggest that Taiwanese expatriates are opting to purchase detached houses rather than renting, and others indicate that developers failed to account for cultural preferences, such as feng shui, which can influence housing choices.

While the long-term outlook for the region remains supported by the scheduled operation of JASM’s second factory in late 2027, the current situation serves as a cautionary example of real estate investment outpacing actual housing demand based on corporate speculation.