Japan’s new apartment price-to-income ratios reach 24 year high

According to Tokyo Kantei, the average price of a brand new apartment across Japan in 2015 was 7.66 times the average annual income, up 0.49 points from 2014. This is the highest ratio seen since 1992, when the ratio was 7.64. Average new apartment prices increased by 7.1% from 2014, while incomes increased by only 0.2%.

The price-to-income ratio of a brand new apartment apartment in greater Tokyo was 10.99, up 1.31 points from 2014. The average price of a 70 sqm apartment was estimated at 56,160,000 Yen in 2015, up 12.7% from 2014. For the first time since the asset bubble in 1990 all three prefectures and the Tokyo metropolitan area in greater Tokyo had price-to-income ratios of 10 and higher.