New apartment prices in Tokyo increase for 3rd consecutive year

According to the Real Estate Economic Institute, 6,189 brand new apartments were released for sale in greater Tokyo in December, up 77.0% from the previous month but down 34.1% from December 2014. 4,013 apartments were sold, making the contract rate 64.8%, down 17.3 points from the previous month and down 5.1 points from 2014.

The average price of a new apartment was 54,570,000 Yen, down 13.8% from the previous month but up 8.7% from 2014. The average price per square meter was 762,000 Yen, down 12.5% from the previous month but up 7.3% from 2014.

The following buildings saw same-day sellouts in December:

  • Brillia City Shakujiidai, Nerima-ku: 30 apartments sold; average price of 58,530,000 Yen.
  • Premist Takao Sakura City, Hachioji: 66 apartments sold; average price of 39,020,000 Yen.

*Same-day sellouts occur when all of the apartments released for sale in a particular sales campaign receive purchase applications. As many developers release apartments for sale in stages, it does not necessarily mean that all apartments in the building have sold.

Tokyo Metropolitan Area Sales

2,895 new apartments were released for sale in Tokyo’s 23 wards, up 81.6% from the previous month but down 33.8% from 2014. 1,941 apartments were sold, making the contract rate 67.0%.Read more

by Zoe Ward

Apartment prices along Tokyo’s Chiyoda Line

ChiyodalineThe following data from Tokyo Kantei shows the change in apartment prices along the Chiyoda Subway Line. The first half this subway line runs through several high-end residential neighbourhoods in central Tokyo, before making its way north and terminating at Kita-Ayase in Adachi Ward.

Also, the line feeds into other lines including the JR Joban Line and Odakyu Odawara Line, and is one of the most used subway lines in Tokyo. Ayase Station, for instance, is the second most used station on the Metro with an average of 437,000 daily passengers changing trains, while Yoyogi Uehara has 250,000 daily passengers.

Otemachi, Nijubashi-mae, Hibiya, Kasumigaseki, and Kokkaigijido-mae Stations have been left out of the data. These stations are in the political and corporate headquarter districts of Tokyo and have very few residential properties.

The average price across all stations on the Chiyoda Line was 891,000 Yen/sqm in 2015, up 32.1% from 2014. The average building age was 20.5 years, down from 21.7 years in 2014. The average apartment size was 59.88 sqm (644 sq.ft), down from 63.08 sqm in 2014.

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by Zoe Ward

Sports stadium and mall likely to replace old Tsukiji fish market

Tsukiji Fish Market 3

According to insiders at a major Japanese real estate company, a sports stadium and shopping mall are being considered as a replacement for the former Tsukiji fish market site in downtown Tokyo.

The famous 80-year old fish market is scheduled to move to its new location on Shin-Toyosu Island in Tokyo Bay in early November 2016, leaving a 23 hectare site prime for redevelopment. The outer market, which has retail and restaurants catering to the general public, will remain in its current location, while the wholesale market will move to a much larger site in Shin-Toyosu.Read more

by Zoe Ward

Residential yields in Minato-ku - January 2016

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in Tokyo was 4.6% in January, down 0.1 points from the previous month and down 0.7 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 895,543 Yen/sqm as of January 1, up 0.6% from the previous month and up 6.2% from last year. The average asking price for land was 1,358,485 Yen/sqm, up 3.1% from the previous month and up 7.6% from last year.Read more

by Zoe Ward

Tokyo Apartment Sales in December 2015

Tokyo apartment sales dec2015

The following is a selection of apartments that were sold in central Tokyo during the month of December 2015:Read more

by Zoe Ward

New apartment supply forecast to rise by 4.4% in 2016

The supply of brand new apartments to be released for sale in the greater Tokyo area in 2016 is forecast to reach around 43,000 units, up 4.4% from 2015.

Japan’s consumption tax rate will be raised to 10% from its current level of 8% in April 2017. This is expected to lead to a rush in last-minute demand from buyers seeking to lock in the purchase price at the lower tax rates. The deadline to lock in a new apartment under the lower tax rate will be for contracts signed up until September 30, 2016.

According to the Real Estate Economic Institute, the construction scandal concerning falsified data about building foundations has had less of an effect that originally anticipated, and is not expected to impact on forecasts for 2016.Read more

by Zoe Ward

Kawasaki City wants to curb supply of studio apartments

Kawasaki City in Kanagawa Prefecture is planning to introduce guidelines to limit the construction of small studio apartments. The city has seen a surge in development of ‘one-room’ apartment buildings and is concerned about the effects on local communities.

The new guidelines may increase the minimum apartment size from 18 sqm (194 sq.ft) to 25 sqm (269 sq.ft), and may require on-site building managers or caretakers. For a building with over 100 units, an on-site manager may be required, while smaller buildings may require a manager for a minimum set of hours per day or week. Garbage collection may be required daily. Developers, managers and residents may also be encouraged to join the local neighbourhood association. However, there will be no fines or penalties for failure to comply with the guidelines.Read more

by Zoe Ward