Tokyo apartment prices showing signs of reaching peak
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo in February 2016 was 33,580,000 Yen, up 0.6% from the previous month and up 14.8% from last year. The average building age was 21.9 years.
In the Tokyo metropolitan area, the average price was 46,460,000 Yen, up 0.1% from the previous month and up 16.0% from last year. This is the 20th month in a row to see an increase in prices, although the rate of growth has slowed, indicating that prices could possibly have reached a peak. The average building age was 21.5 years.
Major real estate brokerages are commenting that the recent boom in property prices in central areas has led to many sellers seeking higher and higher prices for their properties. Properties that are overpriced are taking longer to sell and may require discounting, while properties that are priced within market expectations are still seeing strong demand.
In Tokyo’s 23 wards, the average price was 51,620,000 Yen, showing no change from the previous month but up 15.8% from last year. This ends a 19-month streak of month-on-month increases. The average building age was 21.5 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 71,110,000 Yen, down 0.4% from the previous month but up 12.2% from last year. This is the second month in a row to see a decrease in asking prices. The average building age was 20.1 years.Read more