Supply of new apartments in greater Tokyo to increase in 2018

According to a forecast by the Real Estate Economic Institute, a total of 38,000 brand new apartments are expected to be released for sale across greater Tokyo in 2018, up 4.4% from 2017 and the second year in a row to see an increase. Depending on demand for buyers eager to purchase before the consumption tax rate increase in October 2019, supply could reach as high as 40,000 units.

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 development focusing on city centers as buyers shun suburbs

In Tokyo’s 23 wards, 4.98% of the land is being used for condominium buildings, an increase of 1.02 points over the past 10 years. The ratio is higher in central Tokyo, with some districts having a ratio of around 9%, signaling a clear shift towards living closer to the office and city center.

The report, released by Tokyo Kantei on October 31st, compiled data on Japan’s three major urban centers. In greater Tokyo, Shibuya ward was in top spot with 8.90%, up 1.46 points from 2007. Chuo ward, which includes the man-made islands of Kachidoki and Harumi in Tokyo Bay, increased by 2.03 points to 6.07%. This district has seen a number of high-rise condos built in recent years, especially in the bayside area, while the Nihonbashi district has seen an increase in small-to-medium sized residential developments.

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.

32 million Yen lawsuit filed against illegal Airbnb hosts in Osaka apartment building

The owners association of a condominium in Osaka’s Minami district have filed a lawsuit with the Osaka District Court seeking 32,670,000 Yen (approx. 300,000 USD) in damages from hosts providing illegal overnight accommodation in the building.

According to the association, 5 of the 100 apartments in the 10 year old building have been rented out to overnight guests using online booking sites, contravening the building management bylaws. The association made attempts to have the hosts, who also owned the apartments, stop the activity by imposing fines of 50,000 Yen per day and putting up posters in the building. However, their attempts were ignored.