According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in October was 5.0%, down 0.6 points from the previous month and down 0.8 points from last year. The average gross yield across Tokyo was 6.9%, down 0.1 points from the previous month and down 0.8 points from last year.

The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 797,243 Yen/sqm as of October 1, down 0.9% from the previous month but up 15.9% from last year. The average asking price for land was 1,278,181 Yen/sqm, down 0.07% from the previous month but up 22.4% from last year.

Building age and gross yield (yield after deducting monthly building fees):

  • 1-14 yrs old: 5.15% (4.52%)
  • 15-29 yrs old: 4.20% (3.80%)
  • 30+ yrs old: 7.95% (6.22%)

Apartments less than 10 years old had an average gross yield of 4.53% (4.06% after deducting building fees).

Average advertised rent for an apartment less than 10 minutes walk from the nearest train station:

  • Studio: 139,900 Yen (+10,500 Yen from last month)
  • 1-Bedroom: 216,300 Yen (-200 Yen)
  • 2-Bedroom: 289,900 Yen (+1,600 Yen)
  • 3-Bedroom: 310,000 Yen (-5,300 Yen)

Notes:

The published yields are based on listings advertised on the Homes site. These listings are mainly investment-type properties, such as small tenanted studios, which typically have a higher yield than larger 2 or 3-bedroom family-type apartments.

The calculations do not include:

  • Rental management fees
  • Annual fixed asset taxes
  • Any income taxes payable
  • Purchase fees
  • Repairs

Source: Homes (Data obtained October 7, 2014)

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