Tokyo apartment yields December 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in December was 5.9%, up 0.6 points from the previous month but down 0.1 points from last year. The average gross yield across Tokyo was 6.8%, 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 833,542 Yen/sqm as of December 1, up 3.8% from the previous month and up 16.5% from last year. The average asking price for land was 1,258,787 Yen/sqm, down 1.1% from the previous month but up 17.5% from last year.

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

  • 1-14 yrs old: 5.06% (4.43%)
  • 15-29 yrs old: 5.81% (4.91%)
  • 30+ yrs old: 8.45% (6.60%)

Apartments less than 10 years old had an average gross yield of 4.50% (4.00% after deducting building fees).

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

  • Studio: 126,900 Yen (-2,600 Yen from last month)
  • 1-Bedroom: 212,900 Yen (-1,100 Yen)
  • 2-Bedroom: 298,100 Yen (+5,400 Yen)
  • 3-Bedroom: 306,900 Yen (+1,500 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
  • Purchase fees
  • Repairs

Source: Homes (Data obtained December 7, 2014)

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