Tokyo apartment sale prices increase for 49th month
According to REINS, 3,339 second-hand apartments were sold across greater Tokyo in October, up 6.0% from the previous month and up 16.1% from last year. The average sale price was 31,360,000 Yen, up 0.3% from the previous month and up 6.4% from last year. The average price per square meter was 485,800 Yen, down 1.0% from the previous month but up 6.1% from last year. This is the 46th month in a row to see a year-on-year increase. The average building age was 19.73 years.
In the Tokyo metropolitan area, 1,683 second-hand apartments were sold, up 1.9% from the previous month and up 18.9% from last year. The average sale price was 38,270,000 Yen, down 0.2% from the previous month but up 3.8% from last year. The average price per square meter was 638,900 Yen, down 1.4% from the previous month but up 3.2% from last year. This is the 49th month in a row to see a year-on-year increase. The average building age was 18.87 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 193 second-hand apartments were sold, up 1.6% from the previous month and up 7.8% from last year. The average sale price was 58,640,000 Yen, down 10.9% from the previous month but up 2.5% from last year. The average price per square meter was 1,020,500 Yen, down 6.7% from the previous month and down 1.9% from last year. The average building age was 14.64 years.
The most expensive addresses in Tokyo to buy an apartment
Tokyo Kantei ranked the most expensive neighbourhoods in Tokyo to buy a second-hand apartment. Central Tokyo’s prime areas dominated the rankings, with 17 of the areas located in Minato Ward, 13 in Shibuya and 11 in Chiyoda.
MOTOAZABU
In top spot was the Motoazabu address in Minato Ward with an average apartment price of 2,133,000 Yen/sqm (1,855 USD/sq.ft). The most expensive apartment in this neighbourhood was 3,063,000 Yen/sqm and the cheapest was 1,093,000 Yen/sqm.Read more
Luxury boutique hotel planned for Otaru, Hokkaido
A Sapporo-based real estate developer is planning a small luxury hotel within the grounds of a historic villa in Hokkaido’s Otaru City. The boutique hotel is scheduled to open in July 2017. It will be connected to the historic residence next-door which is operated as a restaurant. Read more
Roppongi development site up for public tender
A 2,200 square meter block of land in Roppongi will go up for public sale by the local finance bureau next month. The government-owned property was previously used to provide subsidised housing for government employees.
The property is located next-door to the Embassy of Saudi Arabia and 50 meters south of Izumi Garden. The land value was estimated at around 7.3 billion Yen back in 2011. Land prices around this area have risen between 15 ~ 30% since then, which could mean that the current land value is closer to 8 ~ 9.5 billion Yen (approx. 77 ~ 92 million USD).Read more
Park Hyatt opening in Kyoto in 2019
Hyatt Hotels and Resorts is planning to open a new hotel in Kyoto. Park Hyatt Kyoto will be located within the grounds of the Kyoyamato Restaurant in Higashiyama-ku, which is about 600 meters from Kiyomizu-dera temple. The property was originally part of the estate of a sub temple and includes a tea room established 360 years ago.
Details on the Kyoto property have yet to be announced, but it is expected that the project will include 70 guest rooms. The restaurant will continue to operate after the hotel has opened. Takenaka Corporation will lease the land from the owner and build a 4-storey hotel which will then be leased to Hyatt. Construction will begin by the end of 2016 with the hotel scheduled to open in 2019.Read more
Price-earnings ratio for apartments in Tokyo reaches record high in 2016
According to Tokyo Kantei, the price-earnings ratio (PER) for brand new apartments in the greater Tokyo area reached a record high of 28.66 in 2016, up 1.36 points from 2015 and the highest level seen since reporting began in 2002. A PER of 28.66 indicates a gross yield of approximately 3.51%.
Price growth of new apartments has far exceeded the change in rental prices, resulting in yields dropping to record lows. The average price of a brand new 70 sqm (753 sq.ft) apartment in greater Tokyo was 59,980,000 Yen in 2016, up 26.3% from 2012. The average rent of a 70 sqm apartment in 2016 was 175,551 Yen/month, up 4.8% from 2012.
The greater Osaka and Nagoya regions also had PERs of around 28 in 2016.
Toranomon area most profitableRead more