According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the total floor space of buildings across Japan totaled 7.73 billion square meters (approx. 83 billion sq.ft) as at January 1, 2018, a 0.2% increase from last year. Housing stock, including both private and public housing, saw a 0.2% rise and accounted for 74.3% of the total.
According to REINS, 3,244 second-hand apartments were sold across greater Tokyo in September, up 40.9% from the previous month and up 0.7% from last year. The average sale price was 32,920,000 Yen, down 0.8% from the previous month but up 2.0% from last year. The average price per square meter was 513,900 Yen, down 1.4% from the previous month but up 1.4% from last year. This is the 69th month in a row to record a year-on-year increase in prices.
According to Tokyo Kantei, the average price of a brand-new apartment across Japan was 7.81 times the average annual income in 2017, up 0.34 points from 2016 and exceeding the previous high of 7.64 seen in 1992. A total of 28 prefectures saw affordability of brand-new apartments worsen in 2017, up from 22 prefectures in 2016. In Kanazawa City, the supply of high-priced new condominiums pulled up the average for Ishikawa Prefecture to a multiple of 8.37, up 3.52 points from 2016.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of September 2018:
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment across greater Tokyo was 36,400,000 Yen in August, up 0.2% from the previous month and up 2.1% from last year. The average building age was 23.9 years.
While Nagano’s urban areas are seeing a slowing in the rate of decline in land prices, one district in the prefecture is seeing no end to eroding land values.
The Hirao district in Yamanouchi Town, known for being home to the Jigokudani Monkey Park and several ski areas, is also home to the steepest drop in both commercial and residential land values in the prefecture. According to the Standard Land Prices issued by the Ministry of Land, Infrastructure, Transport and Tourism, the rate of decline at several survey locations in Hirao worsened in 2018. Land values dropped by between 2 ~ 4% in 2018. In some locations land prices have declined year-on-year since the late 1990s.
Yesterday the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the Standard Land Prices for 2018. The average standard land price across Japan increased by 0.1% – the first increase since 1991. This follows a 0.3% drop recorded in 2017.
According to the Real Estate Economic Institute, the supply of brand new apartments across greater Tokyo in August reached the lowest level seen for the month since 1993. A total of 1,502 new apartments were released for sale, down 49.7% from the previous month and down 28.5% from last year.
According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,464 Yen/sqm in August, down 0.5% from the previous month but up 5.1% from last year. This is the 9th month in a row to see a year-on-year increase. The average apartment size was 55.47 sqm and the average building age was 19.5 years.
It has often been said that Japanese consumers prefer new construction over old. However, this way of thinking has started to change over the past few years with home buyers turning their attention to the existing home market. In 2016, sales of existing ‘second-hand’ apartments in greater Tokyo exceeded those of brand-new apartments for the first time ever. This has not gone unnoticed by Japan’s major real estate developers, who, once focusing solely on new construction, are now entering the growing renovation market. 15 of the top 20 developers are already active in this market.
Fuji Keizai, a marketing research and consulting group, forecasts over 27,000 homes and apartments to be renovated and sold across Japan by professional house-flippers in 2018, up 10% from 2017. By 2020, this number is forecasted to reach 35,000 units, with a total of 131.4 billion Yen spent on renovations.