New apartment prices across greater Tokyo hit highest price since 1990

According to a report issued by the Real Estate Economic Institute on April 16, the average price of a brand new apartment across greater Tokyo was 59,210,000 Yen in fiscal 2017, an increase of 6.9% from 2016 and the highest level seen since 1990 when the average price peaked at 62,140,000 Yen. High labor and construction costs along with rising land prices have been a major contributor to the high sale prices of apartments in and around the capital.

A total of 36,837 brand new apartments were released for sale, a 1.1% increase from 2016 and the first increase seen in four years. This is still far short of the peak supply of 95,479 apartments seen in 2000. The average price per square meter was 864,000 Yen, up 7.9% from 2016.

Tokyo apartment sale prices increase for 66th month

According to REINS, 3,819 second-hand apartments were reported to have sold across greater Tokyo in March, up 11.5% from the previous month and up 2.7% from last year. The average sale price was 33,690,000 Yen, up 0.5% from the previous month and up 7.1% from last year. The average price per square meter was 521,100 Yen, up 1.8% from the previous month and up 5.7% from last year. This is the 63rd month in a row to see a year-on-year increase in sale prices.

Apartment prices take a dip in Tokyo Bayside island district

According to data compiled by Tokyo Kantei, the average asking prices of second-hand apartments in several districts on the manmade islands in Tokyo Bay have declined over the past two years. This is despite the hype from the upcoming 2020 Tokyo Olympics, which will see several facilities and the Athletes Village constructed on these islands. The report covered family-type apartments listed for sale between June and August 2017, comparing them to average asking prices in 2015 and 2016.

Kokusai-tenjijo Station Area:

Serviced by the Rinkai Line, this station is about 450 meters from the Tokyo Big Sight exhibition hall and opposite the Ariake Tennis Courts and Ariake Colosseum. A 1500-unit large-scale apartment complex is currently under construction not far from this station with completion scheduled in early 2020. Apartments in this new project have an average price of around 1,000,000 Yen/sqm. Meanwhile, the average asking price of a second-hand apartment in this district was 679,000 Yen/sqm, down 5.9% from 2016 and down 8.9% from 2015.

Foreign tourists now make up 40% of hotel guests in Kyoto

A survey of 36 leading hotels in Kyoto has found that the percentage of foreign guests has exceeded 40% for the first time since reporting began in 2014. According to the Kyoto City Tourism Association, the share of foreign guests in 2017 was 40.5%, up 3.2 points from 2016. The busiest season for foreign tourists was April, with a share of 50.9%, up 5.3 points from the previous year.

The hotels reported an occupancy ratio of 88.8%, down 0.1 points from 2016. January, which is typically the worst month for tourism, had an occupancy ratio of 75.7%, up 4.3 points from 2016.

Commercial land prices in Japan’s regional areas increase for first time in 26 years

On March 27, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released the Chika-Koji assessed land prices for 2018. According to the data, nationwide land prices across all uses increased by 0.7%, a 0.3 point improvement from 2017 and the third year in a row to record a year-on-year increase.Commercial land prices increased for the third year in a row with a 1.9% increase in 2018. Residential land prices increased by 0.3% in 2018. In 2017, residential land prices increased by 0.022%, showing the first increase in 9 years.

Notably, commercial land prices in Japan’s regional areas increased by 0.5% – the first increase since 1992. Residential land prices in regional areas dropped by 0.1%, although the rate of decline has reduced.

The most expensive land in Japan is the site of the Yamano Music Building in Ginza, Tokyo. The land had an assessed value of 55,500,000 Yen/sqm (approx. 48,800 USD/sq.ft) in 2018, up 9.9% from 2017 and the fifth year in a row to record an increase. This land has increased in value by 275% since 2002.

Japan’s apartment living ratios in 2017

Tokyo Kantei has issued their annual report ranking the cities and towns across Japan that have the highest percentage of condominium-type apartments as a share of total households. According to the data, 12.41% of households in Japan were living in apartments in 2017, up 0.10 points from 2016.

In the Tokyo metropolitan area, the ratio was 27.20% – the highest in the country. Kanagawa Prefecture was in second place with 22.68%.

New apartment prices in Greater Tokyo up 7.8% in February

According to the Real Estate Economic Institute, 2,490 brand new apartments were released for sale across greater Tokyo in February, up 28.7% from the previous month and up 7.8% from last year. The average sale price was 61,280,000 Yen, up 5.8% from last year. The average price per square meter was 889,000 Yen, up 4.3% from last year.

The contract ratio was 65.0%, down 3.4 points from last year and down 0.2 points from the previous month.