Tokyo residential rents continue slow rise
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,647 Yen/sqm in September, up 2.2% from the previous month and up 2.8% from last year. The leading cause of the increase in the rent was due to a large share (60%) of properties located in the Tokyo metropolitan area. The average apartment size was 60.27 sqm and the average building age was 19.0 years.
In the Tokyo metropolitan area, the average rent was 3,182 Yen/sqm, up 0.2% from the previous month and up 3.2% from last year. The average apartment size was 57.51 sqm and the average building age was 17.3 years.
In Tokyo’s 23 wards, the average rent was 3,326 Yen/sqm, up 0.4% from the previous month and up 3.7% from last year. The average apartment size was 56.93 sqm and the average building age was 16.7 years.
Average rents in Saitama, Osaka, Kobe and Nagoya were all down from last year.
Foreign investment in Japan reaches 19-year high but still low by international standards
Investment by foreign-based funds and corporations in Japanese real estate has reached the highest level since 1996. Between January and September 2015, foreign funds acquired 706.5 billion Yen (5.91 billion USD) of property, an increase of 41% from the same period in 2014.
Meanwhile, some last minute transactions at the end of 2014 put the annual acquisition volume for 2014 at 981.8 billion Yen.
Some of the funds have been seeking capital gains, while others, including government-related funds, have been seeking high yields with a long-term view for holding their assets. In September, average office rents in central Tokyo increased for the 21st month in a row. The average spread between the office yield in central Tokyo and the long-term interest rate is around 3%, versus 1% in Singapore and Hong Kong.Read more
New apartment sales slow in September
Rising prices have caused some buyers to retreat from the new apartment market, causing developers to postpone sales of some projects. According to the Real Estate Economic Institute, 2,430 new apartments were released for sale in September, down 6.9% from the previous month and down 27.2% from last year. 1,604 apartments were sold, making the contract rate 66.0%, down 8.3 points from the previous month and down 5.6 points from last year. This is also below the 70.0% level said to indicate the line between good and poor market conditions.
262 apartments in high-rise buildings (over 20 storeys) were offered for sale, down 36.3% from last year. The contract rate was 66.8%.
The average price of a brand new apartment released for sale in greater Tokyo was 53,930,000 Yen, down 8.2% from the previous month but up 13.2% from last year. The average price per square meter was 761,000 Yen, down 7.6% from the previous month but up 14.4% from last year.
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Central Tokyo apartment sale prices reach new 7 year high
According to REINS, 2,772 second-hand apartments were sold across greater Tokyo in September, up 14.8% from the previous month but down 5.7% from last year. This is the first time in six months that transactions have fallen below last year’s level.
The average apartment sale price was 29,580,000 Yen, up 4.5% from the previous month and up 7.6% from last year. The average price per square meter was 462,700 Yen, up 3.2% from the previous month and up 9.0% from last year. The average building age was 20.00 years.
1,389 second-hand apartments were sold in the Tokyo metropolitan area, up 17.2% from the previous month but down 2.5% from last year. The average sale price was 36,070,000 Yen, up 3.0% from the previous month and up 6.8% from last year. The average price per square meter was 612,500 Yen, up 1.7% from the previous month and up 7.8% from last year. The average building age was 18.99 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 156 second-hand apartments were sold, up 9.9% from the previous month and up 3.3% from last year.
The average sale price was 53,100,000 Yen, up 2.8% from the previous month and up 8.6% from last year. The average sale price per square meter was 1,024,500 Yen/sqm, up 0.6% from the previous month and up 13.7% from last year. This is now the fourth month in a row to see prices exceed the 1,000,000 Yen/sqm level. The average building age was 16.58 years.Read more
West Japan’s most expensive apartment to go on sale in Kyoto
On October 8, Mitsubishi Jisho Residence announced a new condominium project for central Kyoto. The most expensive apartment in the building will be priced at over 700 million Yen (5.85 million USD). According to the Real Estate Economic Institute, this is the most expensive apartment to be released for sale in West Japan in the past 20 years. With a price of around 2,440,000 Yen/sqm (1,895 USD/sq.ft), it is similar to the current price of luxury high-rise apartments in central Tokyo.
The Parkhouse Kyoto Kamogawa Gosho-Higashi is located alongside Kyoto’s Kamo River and is 250 meters east of the Kyoto Imperial Palace. This will be the first condominium to be built alongside this river since 2004.Read more
Residential yields in Minato-ku - October 2015
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in October was 4.5%, down 0.1 points from the previous month and down 0.5 points from last year. The average gross yield across Tokyo was 6.5%, showing no change from the previous month and down 0.4 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 871,257 Yen/sqm as of October 1, 2015, down 0.4% from the previous month but up 9.3% from last year. The average asking price for land was 1,269,090 Yen/sqm, up 2.6% from the previous month but down 0.7% from last year.Read more