40-storey apartment tower planned for Shirokane

The Shirokane 1 Chome West Central District Redevelopment Committee announced plans for two 40-storey high-rise apartment buildings. The development site is located on the western side of Shirokane Aer City, which includes the 43-storey, 134m tall Shirokane Tower apartment building.

The redevelopment will include a 140m tall, 40-storey residential building with 900 apartments and a 20m tall factory building. A town planning decision is expected later this year. Construction could start in 2021 with completion by 2025. The total project cost is estimated at 70 billion Yen (approx. 640 million USD).

Price of investment-grade studio apartments reaches record high in 2017

According to Kenbiya, a multi-listing site that specializes in investment properties across Japan, the average asking price of a studio apartment in Tokyo and Osaka in 2017 reached the highest level since record-keeping began in 2006.

The average asking price of a studio apartment in Tokyo’s 23 wards in 2017 was 19,610,000 Yen, up 9% from 2016 and exceeding a previous peak of 18,280,000 Yen recorded in 2015. In Osaka City, the average asking price was 13,810,000 Yen, up 20% from 2016.

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.

Tokyo apartment sale prices increase for 63rd month

According to REINS 3,011 second-hand apartments were sold across Greater Tokyo in December 2017, up 3.7% from the previous month and up 0.6% from the previous year. The average sale price was 33,200,000 Yen, up 3.7% from the previous month and up 6.3% from 2016. The average price per square meter was 519,400 Yen, up 3.5% from the previous month and up 4.3% from 2016. This is the 60th month in a row to see a year-on-year increase in sale prices. The average building age was 20.85 years.

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.