Sales of brand new 100 million Yen + condos triple in January
According to the Real Estate Economic Institute, 1,494 brand new apartments were released for sale in greater Tokyo in January, down 75.9% from the previous month and down 11.0% from January 2015. This is in line with the Institute’s forecast of 1,500 units.
876 apartments were sold, resulting in a contract rate of 58.6%, down 6.2 points from the previous month and down 16.3 points from last year. This is the first time since July 2008 that the contract rate has dropped to the 50% range. 75 apartments in 7 high-rise buildings (over 20 storeys) were offered for sale. The contract rate was 32.0%, down 28.2 points from January 2015.
One of the reasons for the lower contract rate is the relatively high prices which have been pushed up by rising construction costs and land prices. Developers are also taking a ‘wait-and-see’ approach to carefully time the release of apartments in order to avoid unsold inventory.
Meanwhile, 2,655 second-hand apartments were reported to have sold in January, which is triple the number of new apartment sales. Second-hand apartment transactions were also up 8.8% from January 2015.
Although the contract rate for new apartments was low across the board, demand remains strong in the top end of the market. In Tokyo’s 23 wards, 98 new apartments priced over 100 million Yen were offered for sale in January, up from 30 that were offered in January 2015. 83 apartments were sold, up from 28 sales in 2015, and resulting in a contract rate of 84.7%.Read more
Average rent in Tokyo takes a dip in January
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,567 Yen/sqm in January 2016, down 2.3% from the previous month but up 0.9% from January 2015. This is the first time in 5 months that the average rent has fallen below the 2,600 Yen/sqm line, and is due to both a smaller share of listings in the Tokyo metropolitan area, as well as a softening of the rental market. The average apartment size was 59.70 sqm and the average building age was 19.9 years.
In the Tokyo metropolitan area, the average monthly rent was 3,128 Yen/sqm, down 1.2% from the previous month but up 2.6% from last year. The average apartment size was 56.46 sqm and the average building age was 18.1 years.
In Tokyo’s 23 wards, the average rent was 3,280 Yen/sqm, down 0.9% from the previous month but up 3.1% from last year. The average apartment size was 55.79 sqm and the average building age was 17.5 years.Read more
Transactions of secondhand apartments in central Tokyo surge in January
According to REINS, 2,655 second-hand apartments were sold across greater Tokyo in January, up 4.4% from the previous month and up 8.8% from last year. The average sale price was 29,870,000 Yen, up 4.3% from the previous month and up 6.7% from last year. The average price per square meter was 468,400 Yen, up 3.1% from the previous month and up 7.1% from last year. This is the 37th month in a row to see a year-on-year increase in reported sale prices. The average building age was 20.26 years.
In the Tokyo metropolitan area, 1,292 second-hand apartments were sold, up 0.4% from the previous month and up 8.3% from last year. The average sale price was 37,120,000 Yen, up 3.8% from the previous month and up 11.7% from last year. The average price per square meter was 633,300 Yen, up 3.8% from the previous month and up 11.6% from last year. This is the 40th month in a row to see a year-on-year increase in sale prices. The average building age was 19.08 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 170 second-hand apartments were sold, up 7.6% from the previous month and up 37.1% from last year. This is the highest number of transactions for the month of January since record-keeping began in 2008.Read more
Apartment construction boom around Nagoya Station area
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The area around Nagoya Station has been seeing a surge in apartment construction from developers in recent years. The construction has been spurred by the the construction of the Chuo Shinkansen maglev line which will connect Shinagawa Station in Tokyo with Nagoya Station in Nagoya City in 2027. The high-speed rail will reduce the travel time between Tokyo and Nagoya from the current 94 minutes down to 40 minutes.
The station area, which has suffered from flood damage in the past, has not always been a desirable place to live, but the new construction is sparking a gentrification of the old neighbourhoods.Read more
Residential yields in Minato-ku - February 2016
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in Tokyo was 4.6% in February, showing no change from the previous month but down 0.6 points from last year. The average gross yield across Tokyo was 6.2%, showing no change from the previous month but down 0.6 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 906,757 Yen/sqm as of February 1, up 1.3% from the previous month and up 2.5% from last year. The average asking price for land was 1,385,454 Yen/sqm, up 2.0% from the previous month and up 10.5% from last year.Read more
Tokyo Apartment Sales in January 2016
The following is a selection of apartments that were sold in central Tokyo during the month of January 2016:Read more
Tokyo apartment asking prices increase for 18th consecutive month
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo in December 2015 was 32,690,000 Yen, down 0.2% from the previous month but up 12.8% from the previous year. This ends a 15 month streak where prices were increasing on a month-by-month basis. The average building age was 22.1 years.
In the Tokyo metropolitan area, the average price was 46,230,000 Yen, up 1.6% from the previous month and up 17.1% from the previous year. This is the 18th consecutive month to record a month-on-month increase.
In Tokyo’s 23 wards, the average price was 51,430,000 Yen, up 1.6% from the previous month and up 17.4% from the previous year. This is also the 18th month in a row to see a month-on-month increase. The average building age was 21.6 years.Read more