Second-hand apartment prices in Tokyo continued to climb in February, with the latest data from Tokyo Kantei showing a 1.3% rise in apartment prices in the Tokyo metropolitan capital from the previous month.

Strong demand from both local and foreign buyers, and a growing number of renovated properties being flipped by real estate companies is thought to be behind the surge in the asking price of second-hand apartments.

The average asking price of a 70 sqm (753 sq ft) second-hand apartment in the metropolitan area was 40,040,000 Yen in February, up 1.3% from January and up 5.7% from February 2014. The average building age was 21.8 years.

This is the 8th month in a row to see a month-on-month increase in asking prices and is the first time that the average price has exceeded 40,000,000 Yen since September 2008.

In Tokyo’s 23 wards, the average asking price was 44,590,000 Yen, up 1.3% from the previous month and up 7.7% from last year. The average building age was 22.0 years. The price is now 5.7% below the peak of 47,280,000 Yen seen in February 2008.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average price was 63,350,000 Yen, up 2.2% from the previous month and up 11.5% from last year.

Price rises have been focused to central areas in major cities where home buyers are placing increasing importance on convenience. A drop in the supply of brand new apartments is also pushing buyers over to the second-hand market, further adding to demand. Older, renovated apartments in the Azabu and Roppongi areas are selling particularly well.

Some luxury apartments are also seeing strong demand from foreign buyers. A recent weakening of the Yen has made real estate in central Tokyo seem relatively inexpensive when compared with other international cities.

Chiba Prefecture saw the average asking price fall by 0.4% from the previous month, while prices in Kanagawa and Saitama Prefectures are down from 12 months ago, as demand remains limited to central areas only. Prices in Yokohama, Saitama and Chiba City are all down from last year.

Greater Tokyo 29,240,000 Yen (+0.9% from January; +1.0% from Feb. 2014)
  Tokyo 40,040,000 Yen (+1.3%; +5.7%)
  Kanagawa Prefecture 24,750,000 Yen (+0.7%; -1.4%)
  Saitama Prefecture 18,490,000 Yen (+0.2%; -2.1%)
  Chiba Prefecture 18,270,000 Yen (-0.4%; -1.0%)
Kinki Region 18,250,000 Yen (0.0%; -1.5%)
  Osaka 18,630,000 Yen (+0.3%; -2.3%)
  Hyogo Prefecture 17,830,000 Yen (+0.8%; -1.8%)
Chubu Region 15,250,000 Yen (+0.3%; -1.9%)
  Aichi Prefecture 16,030,000 Yen (+0.6%; +0.3%)

Apartment asking prices by city:

Tokyo 23-ku 44,590,000 Yen (+1.3% January; +7.7% from Feb. 2014)
Yokohama City 26,050,000 Yen (+0.3%; -1.5%)
Saitama City 21,030,000 Yen (-0.7%; -0.2%)
Chiba City 16,750,000 Yen (-1.0%; -3.3%)
Osaka City 22,170,000 Yen (+0.2%; -4.5%)
Kobe City 18,100,000 Yen (+1.5%; -0.8%)
Nagoya City 18,700,000 Yen (+0.5%; +3.0%)

Apartment asking prices in Tokyo, Osaka and Nagoya:

Tokyo central 6 wards 63,350,000 Yen (+2.2% from January; +11.5% from Feb. 2014)
Jyonan, Jyosai 6 wards 47,060,000 Yen (+1.0%; +6.0%)
Jyohoku, Jyoto 11 wards 34,140,000 Yen (+0.9%; +5.3%)
Osaka central 6 wards 29,650,000 Yen (+0.4%; -2.0%)
Nagoya central 3 wards 23,570,000 Yen (+0.4%; +8.8%)

About the data:

  • Tokyo central 6 wards: Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, Shibuya.
  • Jyonan, Jyosai 6 wards: Shinagawa, Meguro, Ota, Setagaya, Nakano, Suginami.
  • Jyohoku, Jyoto 11 wards: All other wards in Tokyo.
  • Osaka central 6 wards: Fukushima, Nishi, Tennoji, Naniwa, Kita, Chuo.
  • Nagoya central 3 wards: Naka, Higashi, Chikusa.

The data above is based on advertised prices which may be higher than actual prices after negotiations. Click here to read the REINS report about actual sale prices in February.

Sources:
The Nikkei Shimbun, March 19, 2015.
Tokyo Kantei, March 19, 2015.

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