Tokyo's office market continues to strengthen

In August, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 4.72%, down 0.17 points from the previous month and down 1.30 points from last year. This is the lowest vacancy rate seen since December 2008. Shibuya had the lowest vacancy of 2.22%, down 0.05 points from July and down 1.79 points from last year.

With vacancy rates below the 5% level said to indicate a healthy balance between demand and supply, rents continue to increase. The average monthly office rent was 17,490 Yen per Tsubo (5,300 Yen/sqm), up 0.01% from the previous month and up 4.5% from last year. This is the 20th month in a row to see a month-on-month increase.Read more

by Zoe Ward

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

by Zoe Ward

Residential yields in Minato-ku - September 2015

Tokyo Minato Yields Sep 15

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

by Zoe Ward

Tokyo apartment sales in August 2015

Tokyo apartment sales August

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

by Zoe Ward

Tokyo office rents to peak in 2017?

A vacancy rate of 5% is said to be the line between a landlord’s market and a tenant’s market. According to Miki Shoji, the vacancy rate in Tokyo’s central five business districts in July 2015 was 4.89%, down 0.23 points from June and down 1.31 points from last year. Shibuya-ku has the lowest vacancy rate of 2.27%, down 1.82 points from last year. CBRE reported that the all-grade vacancy rate in July 2015 was 3.3% in the 5 wards and 3.6% across the 23 wards. During the mini-bubble in 2007, the vacancy rate across all wards dropped to just 1.2%, while monthly rents reached a peak of 52,350 Yen/Tsubo (15,863 Yen/sqm).

Marunouchi remains the prime office location, and Marunouchi’s landlord - Mitsubishi Estate - is currently enjoying a vacancy rate of just 1.8%.

With renewed confidence in the economy, vacancy rates have again improved, while office rents have increased to a current average of 33,600 Yen/Tsubo (10,181 Yen/sqm), up from 29,050 Yen/Tsubo (8,803 Yen/sqm) seen during the market bottom.

Demand from companies seeking to rent entire floors is thought to be a driving force behind the rising rents. Companies are starting to group divisions and departments into one building or one floor, rather than having various smaller office locations.Read more

by Zoe Ward

Apartment prices in Tokyo’s 23 wards exceed previous mini-bubble

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) apartment in greater Tokyo in July was 30,680,000 Yen, up 1.9% from the previous month and up 8.6% from last year. This is the 11th month in a row to see an increase, although the average is still 9.9% below the peak of 34,040,000 Yen seen in December 2007. The average building age was 22.2 years.

In Tokyo’s 23 wards the average asking price was 47,640,000 Yen, up 1.7% from the previous month and up 14.1% from last year. This is the first time that the price has exceeded the previous peak of 47,280,000 Yen seen in February 2008. This is also the 13th month in a row to see an increase in prices. The average building age was 22.2 years.

In central Tokyo’s six wards, the average price was 66,950,000 Yen, up 1.8% from the previous month and up 15.4% from last year.

In Yokohama City, the average price was 26,510,000 Yen, down 0.8% from the previous month but up 3.6% from last year. Prices in Yokohama are still 9.4% below their peak of 29,250,000 Yen seen in December 2007.Read more

by Zoe Ward

New apartment prices reach 23-year high in greater Tokyo

Brillia Towers Meguro 1
Brillia Towers Meguro (completion in late 2017) is now 91% sold.

According to the Real Estate Economic Institute, the average price of a brand new apartment released for sale in greater Tokyo was 59,530,000 Yen (478,000 USD) in July, up 2.4% from the previous month and up 7.6% from last year. This is the highest sale price seen since May 1992, when prices were 59,710,000 Yen.

The average price per square meter in July was 850,000 Yen (635 USD/sq ft), up 2.5% from the previous month and up 10.2% from last year. This is the highest price seen since November 1992 (877,000 Yen/sqm).

An increase in the supply of luxury apartments as well as high construction costs is said to be behind the rise in the average sale price.Read more

by Zoe Ward