Tokyo apartment asking prices reach highest level since 1994

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment across greater Tokyo was 35,770,000 Yen in 2017, up 2.9% from 2016 and the fourth year in a row to record a year-on-year increase.

In the Tokyo metropolitan area the average asking price was 48,250,000 Yen, up 1.3% from 2016. This is the highest level seen since 1994. This is being supported by a number of investors buying apartments off-the-plan and then listing them for resale at prices higher than what they paid for them.

The rate of increase has slowed considerably from 2016 when asking prices jumped by 12.0%. Prices have increased by as much as 30% over the past five years, with prices starting to reach an unaffordable level for many home buyers.

In the Kinki region, which includes Osaka, the average asking price was 21,180,000 Yen, up 4.0% from 2016, and the highest level seen since 1999. In Osaka City, prices increased by 1.6%. The Chubu region, which includes Nagoya, saw an average asking price of 17,110,000 Yen, up 5.2% from 2016 and the highest level seen since 1997.

Sources:
Tokyo Kantei, January 22, 2018.
The Nikkei Shimbun, January 22, 2018.