Secondhand apartment prices remain bullish in April
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) apartment in greater Tokyo in April was 29,690,000 Yen, up 0.4% from the previous month and up 4.5% from last year. This is the 8th month in a row to see a month-on-month increase. The average building age was 21.9 years.
The rising cost of brand new apartments is thought to be a contributing cause to the increase in the price of second-hand apartments. Rising prices in central Tokyo are pulling up the average, while suburban areas fall behind. In Chiba City, for example, the average apartment price is down 4.1% from last year.
In Tokyo’s 23 wards, the average asking price was 45,630,000 Yen, up 0.6% from the previous month and up 10.0% from last year. This is the 10th month in a row to see a month-on-month increase and is 3.5% below the previous peak in February 2008. The average building age was 22.2 years.
In central Tokyo’s six wards, the average price was 64,920,000 Yen, up 0.4% from the previous month and up 13.4% from last year. The average building age was 21.5 years.
In Chiyoda-ku, the average asking price was 89,720,000 Yen, up 1.6% from the previous month and up 10.5% from last year.
Supply in central areas is very limited which is putting more pressure on prices. Tokyo Kantei believes prices will continue to increase in central Tokyo. One trend that is becoming particularly noticeable is that sellers, such as developers, are holding off on selling properties now in anticipating of selling them in the future for even higher prices.Read more
Additional fire risk areas identified in Tokyo
Last month an additional 1,030 hectares in 9 wards in Tokyo were added to the city’s list of densely packed, high fire risk neighbourhoods. Old houses in these designated districts may be eligible for financial assistance for demolition costs.
The 13 newly designated areas are located within Tokyo’s 23-ku, including Shinagawa, Adachi and Setagaya.
In Adachi ward, a total area of 645.4 hectares has been designated as being a high-risk fire hazard. The area is primarily around the west side of Nishiarai Station. Many areas have a high risk of fire and building collapse, which can be reduced by the widening of roads and the construction of newer and safer homes.Read more
Historic 84-year old apartment building in Chuo-ku under demolition
The historic Shokin Apaato in Chuo-ku, Tokyo, is being demolished to make way for a 13-storey mixed-use office and residential building.
Shokin Apaato was built in 1931, around the same time as the Dojunkai apartments. The 5-storey, reinforced concrete building was occupied by tenants up until 2013. The owner decided to rebuild as the building does not meet earthquake-resistant standards and has become too costly to maintain.Read more
April 2015 rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,601 Yen/sqm in April, down 0.5% from the previous month and down 1.4% from last year. The average apartment size was 59.68 sqm and the average building age was 18.8 years.
In the Tokyo metropolitan area, the average rent was 3,120 Yen/sqm, up 0.5% from the previous month and up 1.1% from last year. The average apartment size was 56.68 sqm and the average building age was 17.1 years.
In Tokyo’s 23 wards, the average rent increased for the third consecutive month, and has exceeded the previous peak last seen in October 2014. Yokohama and Chiba City have seen a slight drop in rent from the previous month, with Chiba showing a downwards trend from the beginning of the year.Read more
Secondhand apartment transactions up for first time in 13 months
According to REINS, 2,808 second-hand apartments were sold across greater Tokyo in April, down 24.7% from the previous month but up 0.8% from last year. This is the first time in 13 months to see an increase in transactions from the year before. February and March are typically the busiest months of the year for sales, so it is not surprising to see transactions down from March.
The average apartment sale price was 28,280,000 Yen, down 3.2% from the previous month but up 5.2% from last year. The average price per square meter was 445,500 Yen, down 1.7% from the previous month but up 5.1% from last year. The average building age was 20.11 years.
1,377 apartments were sold in the Tokyo metropolitan area, down 25.3% from March but up 1.0% from April 2014. This is also the first time in 13 months to see a year-on-year increase in transactions. The average sale price was 34,900,000 Yen, down 1.9% from the previous month but up 3.6% from last year. The average price per square meter was 597,400 Yen, down 1.9% from the previous month but up 3.6% from last year. The average building age was 18.95 years.
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 158 apartments were sold, down 31.3% from the previous month but up 1.3% from last year. The average sale price was 53,600,000 Yen, down 1.3% from the previous month but up 11.3% from last year. The average price per square meter was 996,800 Yen, up 3.0% from the previous month and up 11.1% from last year. The average building age was 16.24 years.Read more