Local market report: Daikanyama (2019)

Daikanyama is as fashionable and trendy as Omotesando, but with a more laidback vibe on weekends. Sitting in a prime position between Ebisu and Shibuya Stations, it is a great place for a lucky few to call home. It is extremely difficult to find suitable homes and apartments on the market in this neighborhood due to a naturally limited inventory (a lot of the neighborhood is low-density), while many of the residents tightly hold onto their homes for the long-term. 

Let’s take a look at the current real estate market conditions.

APARTMENTS

There were approximately 100 sale listings in the Daikanyama area as of May 2019. Over the past 12 months, the median list-to-sale time was 50 days, or just under 2 months. 

The average apartment size of a current sale listing is 58.50 sqm (629 sq.ft). Almost 80% of listings are under 70 sqm in size, and less than 7% of listings are over 100 sqm in size.

The average asking price of an apartment is 1,350,000 Yen/sqm. For apartments over 100 sqm, the average price is 2,510,000 Yen/sqm. For apartments less than 10 years old, the average price is 1,960,000 Yen/sqm. 

Almost half of the apartments for sale are in buildings over 30 years old. Newer construction is somewhat limited in this area due to the scarcity of development sites and the general low-density zoning of much of the neighborhood. 

Only 2 of the sale listings have two bathrooms. One is tenanted and for investors only, leaving the only two-bath apartment in Daikanyama suitable for an owner-occupier priced at 880 million Yen (approx. 8 million USD).

DETACHED HOMES

Expect to pay between 125 ~ 500 million Yen for a house and land in the current market. The average age of a house currently for sale is 23.7 years, while the average house size is 172 sqm (1,851 sq.ft). 

The average price of a house based on floor size is around 1,410,000 Yen/sqm. This is not necessarily the best metric for pricing a home in Japan as the market price of a home is going to be more strongly influenced by its underlying land value rather than house size.

A glimpse into the older, traditional homes of Daikanyama.

LAND

Government assessed land values at several sites in this neighborhood increased by between 5 ~ 15% between 2017 and 2018.

Expect to pay somewhere between 1,800,000 ~ 2,300,000 Yen/sqm for land for building a residential home. Retail land with good street frontage can cost upwards of 6,000,000 Yen/sqm.

INVESTMENT

The average gross rental yield on residential apartments is 4.4%. Apartments in buildings over 30 years old have an average gross yield of 5.1%, while apartments under 10 years old have an average gross yield of 3.7%. 


To view current real estate listings in Daikanyama, please click the link below.

DAIKANYAMA REAL ESTATE FOR SALE


*We limited our data to freehold properties located within a 12 minute walk of Daikanyama Station.

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