An updated forecast of Tokyo real estate prices
The Japan Real Estate Institute published an updated forecast of real estate prices and rental values in Tokyo’s 23 wards from 2014 to 2020.
In 2013, apartment prices increased by around 4% due to a last minute buying rush before the hike in the consumption tax kicked in. Note: this tax applies to the sale of brand new apartments and applies to the building portion of the sale only. Anyone who signed a contract on a new apartment before the end of September 2013 could lock in the 5% tax rate.
2014
In 2014, apartment prices are forecast to fall by around 2% from the previous year to 804,000 Yen/sqm. This was attributed a drop in demand due to the increase in the consumption tax rate from April 2014.
Monthly apartment rent increased by 6.4% to 3,430 Yen/sqm.