Apartment asking prices up for 7th month in a row

Japan apartment price March 2015

Second-hand apartment prices in greater Tokyo continue to rise this month with the average asking price of a 70 sqm (753 sq ft) apartment up 1.1% from February and up 3.3% from last year. This is the 7th month in a row to see a month-on-month increase. According to Tokyo Kantei, the average apartment asking price greater Tokyo in March was 29,560,000 Yen.

In Tokyo’s 23 wards, the average asking price was 45,360,000 Yen, up 1.7% from the previous month and up 9.4% from last year. The average building age was 22.1 years. The property market in Tokyo is far-outperforming Yokohama City (+1.5% from March 2014), Saitama City (+2.5%), Chiba City (-2.3%) and Osaka City (+3.1%).

Prices continue to reach new highs in central Tokyo’s six wards with the average asking price reaching 64,680,000 Yen, an increase of 2.1% from February and and increase of 13.0% from last year. This is the 9th month in a row to see a month-on-month increase. The gap between price rises in central Tokyo and other wards is becoming more apparent.

Asking prices are being supported by an increase in actual contracted prices. Sellers and real estate brokers are also setting higher and higher asking prices. The market for second-hand properties in Tokyo has been strengthening as a shrinking supply of new apartments is causing buyers to consider older apartments which are typically less expensive. Demand from investors is also strong, and properties that have been set at high prices are starting to sell without any discounting.

Greater Tokyo 29,560,000 Yen (+1.1% from Feb. 2015; +3.3% from Mar. 2014)
  Tokyo 40,570,000 Yen (+1.3%; +7.5%)
  Kanagawa Prefecture 24,900,000 Yen (+0.6%; +1.3%)
  Saitama Prefecture 18,420,000 Yen (-0.4%; -0.7%)
  Chiba Prefecture 18,230,000 Yen (-0.2%; -2.0%)
Kinki Region 18,300,000 Yen (+0.3%; +0.6%)
  Osaka 18,890,000 Yen (+1.4%; +1.9%)
  Hyogo Prefecture 17,700,000 Yen (-0.7%; +0.2%)
Chubu Region 15,270,000 Yen (+0.1%; +1.6%)
  Aichi Prefecture 16,030,000 Yen (0.0%; +3.3%)


Apartment asking prices by city:

Tokyo 23-ku 45,360,000 Yen (+1.7% from Feb. 2015; +9.4% from Mar. 2014)
Yokohama City 26,240,000 Yen (+0.7%; +1.5%)
Saitama City 20,940,000 Yen (-0.4%+2.5%)
Chiba City 16,730,000 Yen (-0.1%; -2.3%)
Osaka City 22,700,000 Yen (+2.4%; +3.1%)
Kobe City 17,980,000 Yen (-0.7%; +0.2%)
Nagoya City 18,700,000 Yen (0.0%; +5.4%)


Apartment asking prices in Tokyo, Osaka and Nagoya:

Tokyo central 6 wards 64,680,000 Yen (+2.1% from Feb. 2015; +13.0% from Mar. 2014)
Jyonan, Jyosai 6 wards 47,470,000 Yen (+0.7%; +6.8%)
Jyohoku, Jyoto 11 wards 34,290,000 Yen (+0.4%; +5.9%)
Osaka central 6 wards 30,940,000 Yen (+4.4%; +8.1%)
Nagoya central 3 wards 23,500,000 Yen (-0.3%; +10.7%)

About the data:

  • Tokyo central 6 wards: Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, Shibuya.
  • Jyonan, Jyosai 6 wards: Shinagawa, Meguro, Ota, Setagaya, Nakano, Suginami.
  • Jyohoku, Jyoto 11 wards: All other wards in Tokyo.
  • Osaka central 6 wards: Fukushima, Nishi, Tennoji, Naniwa, Kita, Chuo.
  • Nagoya central 3 wards: Naka, Higashi, Chikusa.

The data above is based on advertised prices which may be higher than actual prices after negotiations. Click here to read the REINS report about actual sale prices in March.

Sources:
The Nikkei Shimbun, April 20, 2015.
Tokyo Kantei, April 20, 2015.

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