Tokyo apartment sale prices increase for 60th consecutive month

According to REINS, 3,222 second-hand apartments were sold across greater Tokyo in September, up 42.3% from the previous month and up 2.3% from last year. The average sale price was 32,260,000 Yen, down 0.3% from the previous month but up 3.2% from last year. The average price per square meter was 506,700 Yen, up 0.3% from the previous month and up 3.3% from last year. This is the 57th month in a row to record a year-on-year increase in sale prices. The average building age was 21.02 years.

In the Tokyo metropolitan area, 1,686 second-hand apartments were sold, up 47.6% from the previous month and up 2.1% from last year. The average sale price was 39,500,000 Yen, down 2.1% from the previous month but up 3.0% from last year. The average price per square meter was 670,100 Yen, down 2.1% from the previous month but up 3.5% from last year. This is the 60th month in a row to record a year-on-year increase in sale prices. The average building age was 19.69 years.

Central Tokyo’s 3 wards

In central Tokyo’s 3 wards of Chiyoda, Chuo and Minato, 204 second-hand apartments were sold, up 36.0% from the previous month and up 7.4% from last year. This is the 13th month in a row to record a year-on-year increase in transactions and is the highest number of reported transactions for the month of September since record-keeping began in 2008.

The number of new listings was down for the 11th month in a row with 1,221 apartments listed for sale in September, down 10.5% from last year.

The average sale price was 61,740,000 Yen, down 5.3% from the previous month and down 6.2% from last year. The decline in the average sale price was due to the average size of an apartment sold shrinking by 5.8% from the previous month and 8.7% from last year to 54.97 sqm.

The average sale price per square meter was 1,123,300 Yen, up 0.5% from the previous month and up 2.7% from last year. This is the hugest price per square meter seen since record-keeping began in early 2008, beating a previous high of 1,173,300 Yen/sqm set in August, and up 62.7% from the recent bottom of 690,300 Yen/sqm recorded in November 2012.  The average building age was 16.81 years.

Remaining inventory was down for the 7th month in a row, dropping 11.3% from last year.

Sales over 100 million Yen up 47%

A total of 140 second-hand apartments over 100 million Yen were reported to have sold in the Tokyo metropolitan area in the third quarter of 2017, up 17.6% from the previous quarter and up 47% from the third quarter of 2016.

As demand is heating up for high-end apartments, supply is dwindling. Remaining inventory was down 9.7% from last year. New listings for the third quarter were down 4.4% from the previous quarter and down 4.0% from last year.

Source: REINS, October 10, 2017.