New apartment supply in Tokyo up from last year
According to the Real Estate Economic Institute, the average price of a brand new apartment released for sale in greater Tokyo in August was 58,720,000 Yen, down 1.4% from the previous month but up 3.3% from last year.
The average price per square meter was 824,000 Yen, down 3.1% from the previous month but up 6.3% from last year.
2,610 new apartments were released for sale, up 23.7% from last year, but down 45.5% from July. August is typically a slow month for the real estate industry due to the summer heat and holidays, so developers usually hold off on sales activities. 1,938 apartments were sold, making the contract rate 74.3%, up 4.7 points from last year.Read more
Standard land prices increase in major cities in 2015
Yesterday the MLIT released the standard land prices (kijun-chika) for Japan’s major cities and regional areas. Nationwide, land prices declined for the 24th year in a row, although the 0.9% decline in 2015 is down from the 1.2% drop seen in 2014.
Buoyed by growing foreign tourist numbers, redevelopment projects, an economic recovery and monetary easing, the three major cities of Tokyo, Osaka and Nagoya, saw commercial land prices rise by 2.3% (up from a 1.7% increase in 2014). Residential land prices in these cities grew by an average of 0.4% (down slightly from the 0.5% increase in 2014).
69.9% of the surveyed commercial locations in the three cities saw an increase in prices (up from 68.0% of locations in 2014), while 44.7% of residential areas saw an increase (compared to a 46.9% share in 2014).
The redevelopment around Nagoya Station in anticipation of the new maglev train, scheduled to start services between Tokyo and Nagoya in 2027, has led to a large increase in land prices. Some locations have increased by between 25 ~ 45%.
Commercial land prices in Omotesando up 20.2%Read more
Record number of apartment sales in central Tokyo in August
According to REINS, 2,415 second-hand apartments were sold across greater Tokyo in August, down 14.0% from the previous month but up 14.0% from last year. This is the 5th month in a row to see a year-on-year increase in transactions.
August is typically a slow month for real estate sales due to the hot weather and summer holidays.
The average apartment sale price was 28,320,000 Yen, down 1.3% from the previous month but up 0.4% from last year. The average price per square meter was 448,200 Yen, down 0.8% from the previous month but up 2.6% from last year. The average building age was 20.44 years.
1,185 apartments were sold in the Tokyo metropolitan area, down 15.7% from the previous month but up 18.1% from last year. This is also the 5th month in a row to see a year-on-year increase in transactions. The average sale price was 35,020,000 Yen, up 0.7% from the previous month and up 0.4% from last year. The average price per square meter was 602,300 Yen, down 0.1% from the previous month but up 2.5% from last year. The average building age was 19.61 years.
Central Tokyo’s 3 wards:
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 142 second-hand apartments were sold, down 13.9% from the previous month but up 24.6% from last year. This is the highest number of transactions recorded for the month of August since record-keeping began in 2008, and is approximately 63% higher than the average seen between 2008 ~ 2012.
The average sale price was 51,650,000 Yen, down 4.5% from the previous month and down 7.5% from last year. The average price per square meter was 1,017,900 Yen, down 0.1% from the previous month but up 10.6% from last year. This is the third month in a row where prices have exceeded the 1,000,000 Yen/sqm level. The average building age was 16.27 years.Read more
Residential yields in Minato-ku - September 2015
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in September was 4.6%, down 0.1 points from the previous month and down 1 point from last year. The average gross yield across Tokyo was 6.5%, showing no change from the previous month and down 0.5 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 874,485 Yen/sqm as of September 1, 2015, up 0.6% from the previous month and up 8.7% from last year. The average asking price for land was 1,236,969 Yen/sqm, up 0.2% from the previous month but down 3.3% from last year.Read more
Tokyo apartment sales in August 2015
The following is a selection of apartments that were sold in central Tokyo during the month of August 2015:Read more