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According to Tokyo Kantei, the half-yearly rate of growth in the price of second-hand apartments in Tokyo has slowed in the first half of 2016 after seeing strong and likely unsustainable gains over the past three years.

Second-hand apartment prices in central Tokyo have increased by 32.7% from the bottom seen in the second half of 2012, and are up 6.1% from the first half of 2015. However, prices have only increased by 0.06% between the second half of 2015 and the first half of 2016.

The rate of half-yearly growth in central Tokyo reached as high as 6% in the second half of 2014 and 2015. In the second half of 2015, prices were up 12.6% from the same period in 2014. This growth rate is not sustainable in the long-term.

Some areas within Tokyo performed better than others.

In Minato ward, the average price of a second-hand apartment in the first half of 2016 was 1,308,000 Yen/sqm, up 37.8% from the bottom seen in the second half of 2012. Prices also increased by 1.5% from the second half of 2015. Chuo ward saw growth of 0.4% over the same period, although the rate of growth is far below the previous rate of 7.3% seen between the first and second half of 2015.

MInato ward was the most expensive district in Tokyo to buy a second-hand apartment, followed by Chiyoda (1,251,000 Yen/sqm) and Shibuya (1,221,000 Yen/sqm).

tokyo-apartment-prices-2011-2016

In Kyoto City, price growth has remained steady with prices in the first half of 2016 up 3.8% from the second half of 2015, and up 7.7% from the first half of 2015. Prices in the historic city are now up 31.7% from their previous bottom seen in the first half of 2011. Prices in nearby Osaka City are up 24.4% from their previous bottom seen in the first half of 2012.

Source: Tokyo Kantei, October 31, 2016.

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