Okinawa property prices on the rise
Okinawa’s real estate market has been benefiting from a growing population and improving tourist market. As a result, government assessed land prices have increased for the past three years.
In 2013, an apartment priced at 140 million Yen in a brand new building in Naha City had six offers, with the developer picking the lucky buyer from a raffle-type system. In 2015, a 180 sqm block of residential land in Naha’s Shuri district went under contract within a day of being listed for sale. Residential land in the popular Shuri district has increased by approximately 10,000 ~ 15,000 Yen/sqm over the past year to around 100,000 ~ 150,000 Yen/sqm (85 ~ 130 USD/sq.ft).Read more
Residential yields in Minato-ku - April 2016
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in Tokyo was 4.3% in April 2016, down 0.2 points from the previous month and down 0.5 points from last year. The average yield across Tokyo was 6.0%, down 0.2 points from the previous month and down 0.6 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 969,714 Yen/sqm, up 7.1% from the previous month and up 10.3% from last year. The average asking price for land was 1,363,030 Yen/sqm, down 0.6% from the previous month but up 13.0% from last year.Read more
100 million Yen-plus apartments not limited to central Tokyo
100 million Yen-plus apartments are starting to appear in station developments across Japan, and not just in central Tokyo. According to the Real Estate Economic Institute, there were a total of 1,688 brand new apartments priced over 100 million Yen (approx. 905,000 USD) released for sale in greater Tokyo in 2015.
All apartments in Proud Tower Tachikawa - a 32-storey, 319-unit residential tower connecting to Tachikawa Station in west Tokyo - sold out prior to completion, despite having strong pricing of around 1,000,000 Yen/sqm (840 USD/sq.ft). Apartments on the top floor were priced over 100 million Yen. The average age of a buyer was 53, and approximately 40% of the buyers were doctors and medical professionals. The building is due for completion in August 2016.
A 30-storey high-rise apartment building is currently under construction in front of Atami Station in Shizuoka Prefecture. The Crest Tower Atami is due for completion in February 2017. Apartments are priced at around 600,000 ~ 700,000 Yen/sqm (505 ~ 590 USD/sq.ft). A 124 sqm (1,334 sq.ft) 2-Bedroom apartment on the top floor was priced at 145 million Yen (1.3 million USD).Read more
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