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.

Rent in Tokyo jumps 4.2% thanks to supply of new construction

According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,474 Yen/sqm in December 2017, up 4.2% from the previous month and up 3.6% from 2016. The increase was caused by a larger share of relatively new buildings which typically command higher rents, along with the release of a large number of brand new high-rise apartment towers in Shinjuku and Shinagawa.

Apartment asking prices in Tokyo in November 2017

According to Tokyo Kantei the average asking price of a 70 sqm (753 sq ft) apartment across greater Tokyo was 36,210,000 Yen in November, up 1.1% from the previous month and up 2.1% from last year. The average building age was 23.1 years.

In Tokyo’s 23 wards the average asking price was 53,320,000 Yen, up 0.8% from the previous month and up 1.0% from last year. The average building age was 22.7 years.

Apartment asking prices in Tokyo in October 2017

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) apartment across Greater Tokyo was 35,810,000 Yen in October 2017, up 0.7% from the previous month but down 1.1% from last year. The average building age was 23.0 years.

In Tokyo’s 23 wards the average asking price was 52,920,000 Yen, showing no change from the previous month but up 0.9% from last year. The average building age was 22.6 years.

Apartment asking prices across greater Tokyo drop slightly in September

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) apartment across greater Tokyo was 35,550,000 Yen in September 2017, down 0.3% from the previous month but up 0.7% from last year. The average building age was 23.1 years.

In Tokyo’s 23 wards the average asking price was 52,920,000 Yen, down 0.9% from the previous month but up 0.5% from last year. The average building age was 22.7 years. Saitama City saw average asking prices increase by 2.0% from the previous month and 10.4% from last year.

Average asking price of an apartment in Tokyo up 1.1% from last year

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment across greater Tokyo was 35,660,000 Yen in August 2017, up 0.1% from the previous month and up 1.3% from last year. Prices continue to remain stable in the 35 million Yen range since November 2016. The average building age was 23.0 years.

In Tokyo’s 23 wards the average asking price was 53,380,000 Yen, up 0.2% from the previous month and up 1.1% from last year. The average building age was 22.4 years.

Apartment occupancy rates reach record high in Japan

The average occupancy rate of rental apartment buildings acquired by J-REITs has been steadily improving since 2010 and has exceeded levels last seen during the peak in 2008. In the second half of 2016 the average occupancy rate was 96%, a record high.

This is due both to an improving property market and REITS acquiring relatively new buildings in prime, central locations. While occupancy rates remain high in Tokyo, other cities across the country are seeing a reversal with a declining trend evident since 2013.

Trends in cities other than Tokyo:

  • Sapporo: Although occupancy levels are relatively high, they have been decreasing since late 2014.
  • Sendai: Occupancy rates reached record highs due to housing demand following the Tohoku disaster in 2011, but have been slowly falling. Sendai has seen the highest decline of all cities.
  • Yokohama: Occupancy has been falling since mid-2013, although there was an improvement in the second half of 2016.
  • Nagoya: Occupancy rates have been falling since 2013 and are sitting at a comparatively low level.
  • Osaka: Occupancy rates have been improving since late 2015 and are at a relatively high level.
  • Fukuoka: Occupancy rates have been steadily falling. The rate of decline has been influenced by a building with an occupancy rate of less than 80%.

*Central Tokyo 5 wards: Chiyoda, Chuo, Minato, Shinjuku, Shibuya.

Source: Mizuho Real Estate Market Report, July 14, 2017.

Tokyo apartment asking prices in July 2017

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment across greater Tokyo was 35,620,000 Yen in July, showing no change from the previous month but up 1.9% from last year. The average building age was 22.9 years.

In Tokyo’s 23 wards, the average asking price was 53,260,000 Yen, up 0.3% from the previous month and up 0.9% from last year. The average building age was 22.3 years.

In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 72,860,000 Yen, down 0.4% from the previous month but up 1.4% from last year. The average building age was 20.6 years.

Average apartment rent in June 2017

According to Tokyo Kantei, the average monthly rent of a condominium-type apartment across greater Tokyo in June 2017 was 2,619 Yen/sqm, down 0.5% from the previous month but up 0.5% from last year. The average apartment size was 59.62 sqm and the average building age was 20.4 years.

In the Tokyo metropolitan area the average monthly rent was 3,128 Yen/sqm, down 0.4% from the previous month and down 0.1% from last year. The average apartment size was 56.51 sqm and the average building age was 18.5 years.

In Tokyo’s 23 wards the average monthly rent was 3,292 Yen/sqm, down 0.2% from the previous month but up 0.1% from last year. The average apartment size was 55.78 sqm and the average building age was 17.8 years.

Both Yokohama and Saitama cities saw a large increase in average rents due to a larger share of transactions on newer apartments in more central locations, and a smaller share of transactions for older buildings that generally command lower rents.