The average rent for an apartment in Tokyo’s 23 wards saw a 5.3% year-on-year increase in 2018 – the highest annual percentage increase in over 10 years. This was due in part to the fact that over 10% of the listings in the first half of the year were new construction. Newly built apartments tend to command higher rents than older ones, and can pull up the average. Average rents in Tokyo are now up 16% from their bottom in 2012.
Real estate transactions in Japan by institutional funds in the second half of 2018 reached 1.729 trillion Yen (approx.15.8 billion USD), down 34% from the second half of 2017 and the lowest level seen in six years.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of January 2019:
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo was 37,290,000 Yen in December 2018, up 0.5% from the previous month and up 3.2% from December 2017. The average building age was 24.3 years.
According to REINS, 2,987 second-hand apartments were reported to have sold across greater Tokyo in December 2018, down 7.4% from the previous month and down 0.8% from the previous year. The average sale price was 33,800,000 Yen, up 2.5% from the previous month and up 1.8% from 2017. The average price per square meter was 524,100 Yen, up 3.1% from the previous month and up 0.9% from 2017. This is the 72nd month in a row to record a year-on-year increase in sale prices.
According to the Japan Real Estate Institute, the real estate transaction volume across Japan for the first half of 2018 was 2.1 trillion Yen (approx. 18.5 billion USD).
Thank you to our many readers and clients over the past year. We look forward to your continued support in 2019.
~ The Japan Property Central Team ~
This year we have simplified our annual property report below. We apologize if it focuses on the Tokyo market, as this is where the majority of our clients are looking to invest.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of December 2018:
On December 20 the Real Estate Economic Institute released their forecast for the new condominium market in greater Tokyo in 2019. A total of 37,000 new apartments are expected to be released for sale, up 0.8% from 2018, while the consumption tax rate increase is anticipated to have only a limited impact.
According to Tokyo Kantei the average asking price of a 70 sqm (753 sq.ft) second-hand apartment across greater Tokyo was 37,100,000 Yen in November 2018, up 2.3% from the previous month and up 2.5% from the previous year. The average building age was 24.4 years.