Tokyo Apartment Sales in March 2016
The following is a selection of apartments that were sold in central Tokyo during the month of March 2016:Read more
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
Japan's commercial land prices increase for first time in 8 years
For the first time in 8 years, commercial land prices in Japan saw an increase from the previous year. According to the 2016 ‘chika-koji’ assessed land values released by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the nationwide commercial land price increased by 0.9% from 2015.
In the Tokyo metropolitan area, commercial land values increased by 4.1% in 2016, up from a 2.9% increase in 2015.
The increase can be attributed to improving office conditions in city centres, and a surge in construction of hotels to meet the growing number of foreign tourists. Read more
Average apartment rent in February 2016
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,528 Yen/sqm in February, down 1.5% from the previous month and down 3.7% from last year. The share of rental listings in the Tokyo metropolitan area dropped by 6 points from the previous month, which may have contributed to the lower rent. The average apartment size was 59.98 sqm and the average building age was 19.9 years.
In the Tokyo metropolitan area, the average rent was 3,161 Yen/sqm, up 1.1% from the previous month and up 3.0% from last year. The average apartment size was 56.33 sqm and the average building age was 17.7 years.
In Tokyo’s 23 wards, the average rent was 3,309 Yen/sqm, up 0.9% from the previous month and up 3.4% from last year. The average apartment size was 55.75 sqm and the average building age was 17.2 years.Read more
New apartment supply in February reaches 25 year low
According to the Real Estate Economic Institute, 2,237 brand new apartments were released for sale in greater Tokyo in February, up 49.7% from January but down 13.9% from February 2015. This is the lowest figure for the month February since 1991.
Amidst rising construction costs and increasing apartment prices, developers have been cautious to limit the supply released on the market. The Institute remarked that the Bank of Japan’s recent introduction of negative interest rates appears to have had a negligible effect on new apartment sales as interest rates available to consumers were already at low levels prior to the BoJ’s announcement.Read more
Tokyo apartment transactions increase for 5th consecutive month
According to REINS, 3,539 second-hand apartments were sold across greater Tokyo in February, up 33.3% from the previous month and up 7.5% from last year. This is the 5th month in a row to see a year-on-year increase in transactions.
The average sale price was 30,450,000 Yen, up 2.0% from the previous month and up 4.1% from last year. The average price per square meter was 471,200 Yen, up 0.6% from the previous month and up 4.7% from last year. This is the 38th month in a row to see a year-on-year increase in sale prices. The average building age was 19.71 years.
In the Tokyo metropolitan area, 1,759 second-hand apartments were sold, up 36.1% from the previous month and up 11.9% from last year. The average sale price was 37,160,000 Yen, up 0.1% from the previous month and up 2.1% from last year. The average price per square meter was 618,900 Yen, down 2.3% from the previous month but up 2.1% from last year. The average building age was 18.64 years.Read more
Residential yields in Minato-ku - March 2016
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in Tokyo was 4.5% in March, down 0.1 points from the previous month and down 0.5 points from last year. The average yield across Tokyo was 6.2%, showing no change from last month but down 0.4 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 905,771 Yen/sqm, down 0.1% from last month but up 1.7% from last year. The average asking price for land was 1,370,606 Yen/sqm, down 1.1% from last month but up 9.9% from last year.Read more