Japan’s new apartment price to income ratio increases for 7th year

In 2018, the average price of a brand-new apartment across Japan was 8.09 times the average annual income. This is a 0.28 point increase from 2017 and the 7th year in a row to record a year-on-year increase in the multiple. For second-hand apartments, the nationwide ratio was 5.47, up 0.17 points from 2017 and the 6th year in a row to see an increase. 

In Tokyo’s 23 wards, the ratio for new construction was 13.30, and 10.49 for existing construction. Kyoto Prefecture was the second most unaffordable district in Japan with a ratio of 11.95 for new construction. For existing construction, Okinawa was the second most unaffordable district with a ratio of 9.32. 

The average annual income across Japan was 4,480,000 Yen in 2018, showing no change from 2017. Tokyo had the highest average income in the country, sitting at 5,780,000 Yen. Average income in the capital increased by 4% from 2017.

The most affordable prefecture in Japan was Yamaguchi where an existing apartment will cost around 3.92 times the average annual income.

Source: Tokyo Kantei, December 4, 2019.

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