Secondhand apartment sale prices reach new record in central Tokyo

According to REINS, 3,114 second-hand apartments were sold across greater Tokyo in June, up 3.5% from the previous month and up 10.7% from last year. This is the 3rd month in a row to see a year-on-year increase in transactions.

The average apartment sale price was 29,140,000 Yen, up 0.9% from the previous month and up 6.2% from last year. The average price per square meter was 453,300 Yen, up 0.1% from the previous month and up 6.6% from last year. The average building age was 20.26 years.

1,579 apartments were sold in the Tokyo metropolitan area, up 8.6% from the previous month and up 14.3% from last year. The average sale price was 35,670,000 Yen, down 1.4% from the previous month but up 4.5% from last year. The average price per square meter was 596,500 Yen, down 2.7% from the previous month but up 5.9% from last year. The average building age was 19.44 years.

Sale prices in central Tokyo reach new record high

In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 172 apartments were sold, down 8.5% from the previous month and down 2.3% from last year. Transactions, however, are still about 52% higher than the average number seen for June between 2008 ~ 2012.

Past transactions in June:

  • 2015: 172
  • 2014: 176
  • 2013: 174
  • 2012: 122
  • 2011: 99
  • 2010: 101
  • 2009: 129
  • 2008: 118

The average sale price was 51,730,000 Yen, down 3.6% from the previous month but up 4.2% from last year. The average price per square meter was 1,013,100 Yen, up 1.3% from the previous month and up 16.5% from last year. This is the highest price seen since REINS started publishing data on central Tokyo in January 2008.

The average building age was 17.15 years, which is only slightly newer than the average of 17.45 years for June 2014, so the price increase is not entirely due to an increase in the sale of newer apartments. [Note: newer apartments generally sell at higher prices per square meter than older ones, and an increase in transactions of newer apartments can sometimes skew price data.]

Average apartment sizes, however, were down 10.6% from last year to 51.06 sqm (549 sq ft), which could suggest that buyers are starting to buy smaller apartments to keep within their budget.

New listings and inventory on the rise

After seeing inventory levels dwindle to record lows, we are finally starting to see a slight increase as sellers start to list new properties to meet the growing demand.

In central Tokyo, the number of new apartment listings in June was up 44% from last year. The average asking price was 1,105,900 Yen/sqm, and the average building age was 21.68 years. Remaining inventory was up 25.3% from last year, but indicates a remaining supply of 14.3 months.

For the first time in 29 months, remaining inventory in greater Tokyo increased from 12 months prior. In June, inventory increased by 1.7% from last year. This has been met with a corresponding increase in sales, which has meant that remaining supply has shrunk over the past 12 months from 12.03 months in June 2014, down to 11.05 months in June 2015.

Boost in transactions of high-priced apartments

In the 2nd quarter of 2015 (April ~ June), 88 apartments priced over 100 million Yen sold in the Tokyo metropolitan area, up 49.2% from the same period in 2014. 257 apartments priced between 70 ~ 100 million Yen sold over the same period, up 71.3% from 2014.

In the first half of 2015, 171 apartments priced over 100 million Yen sold, up 41.3% from the first half of 2014. 490 apartments priced between 70 ~ 100 million Yen sold over the same period, up 54.6% from last 2014.

Sale prices per square meter

Greater Tokyo: 453,300 Yen +6.6% from June 2014
Tokyo Metropolitan Area 596,500 Yen +5.9%
Chiyoda, Chuo, Minato 1,013,100 Yen +16.5%
Shinagawa, Ota, Meguro,
Setagaya
715,600 Yen +10.6%
Shinjuku, Shibuya, Suginami,
Nakano
750,200 Yen +5.6%
Bunkyo, Toshima, Kita, Itabashi,
Nerima
594,700 Yen +8.6%
Taito, Koto, Edogawa, Sumida,
Katsushika, Adachi, Arakawa
510,100 Yen +9.4%
Saitama Prefecture: 272,700 Yen +10.5%
Saitama City 330,700 Yen +3.9%
Chiba Prefecture: 242,700 Yen +3.6%
Chiba City 230,200 Yen +9.8%
Kanagawa Prefecture: 395,500 Yen +5.0%
Yokohama City 406,100 Yen +4.3%
Kawasaki City 496,200 Yen +10.8%
Tokyo Metropolitan Area
No. of sales in June: 1,579 (+8.6% from May; +14.3 from June 2014)
Remaining inventory: 18,404 apartments (11.65 months)
Average sale price: 35,670,000 Yen (-1.4; +4.5%)
Average sale price per sqm: 596,500 Yen (-2.7%; +5.9%)
Average size: 59.79 sqm
Average building age: 19.44 yrs (+0.43 yrs; +1.08 yrs)
Central Tokyo’s 3 wards (Chiyoda, Chuo, Minato)
No. of sales in June: 172 (-8.5% from May; -2.3% from June 2014)
Remaining inventory: 2,465 apartments (14.33 months)
Average sale price: 51,730,000 Yen (-3.6%; +4.2%)
Average sale price per sqm: 1,013,000 Yen (+1.3%; +16.5%)
Average size: 51.06 sqm
Average building age: 17.15 yrs (+0.40 yrs; -0.30 yrs)

SECOND-HAND HOMES

1,141 second-hand homes were sold across greater Tokyo in June, up 10.7% from the previous month and up 10.3% from last year. The average sale price was 30,380,000 Yen, up 2.4% from the previous month and up 4.4% from last year. The average house size was 106.60 sqm and the average land size was 153.31 sqm. The average building age was 20.71 years.

In the Tokyo metropolitan area, 331 homes were sold, up 8.5% from the previous month and up 24.9% from last year. The average sale price was 43,340,000 Yen, up 3.4% from the previous month and up 1.5% from last year. The average house size was 104.39 sqm and the average land size was 113.32 sqm. The average building age was 18.56 years.

In Tokyo’s popular residential areas of Shinagawa, Ota, Meguro and Setagaya, the average sale price was 67,140,000 Yen, down 1.9% from the previous month but up 2.4% from last year. The average house size was 109.20 sqm and the average land size was 93.82 sqm. The average building age was 15.18 years.

BRAND NEW HOME SALES

440 brand new homes were sold across greater Tokyo, up 6.8% from the previous month and up 4.5% from last year. The average sale price was 34,120,000 Yen, down 2.8% from the previous month and down 2.6% from last year. The average house size was 97.62 sqm and the average land size was 116.79 sqm.

113 new homes were sold in the Tokyo metropolitan area, up 27.0% from the previous month and up 11.9% from last year. The average sale price was 43,180,000 Yen, up 1.6% from the previous month and up 5.8% from last year. The average house size was 92.69 sqm and the average land size was 95.33 sqm.

LAND

550 blocks of land (between 100 ~ 200 sqm) were sold in greater Tokyo, up 0.2% from the previous month and up 20.1% from last year. The average sale price was 194,300 Yen/sqm, down 1.0% from the previous month and down 1.4% from last year.

159 blocks of land were sold in the Tokyo metropolitan area, up 0.6% from the previous month and up 3.9% from last year. The average sale price was 334,300 Yen/sqm, up 5.1% from the previous month and up 8.1% from last year.

Source: REINS, July 10, 2015.

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