Secondhand apartment prices continue to rise in February

Second-hand apartment prices in Tokyo continued to climb in February, with the latest data from Tokyo Kantei showing a 1.3% rise in apartment prices in the Tokyo metropolitan capital from the previous month.

Strong demand from both local and foreign buyers, and a growing number of renovated properties being flipped by real estate companies is thought to be behind the surge in the asking price of second-hand apartments.

The average asking price of a 70 sqm (753 sq ft) second-hand apartment in the metropolitan area was 40,040,000 Yen in February, up 1.3% from January and up 5.7% from February 2014. The average building age was 21.8 years.

This is the 8th month in a row to see a month-on-month increase in asking prices and is the first time that the average price has exceeded 40,000,000 Yen since September 2008.

In Tokyo’s 23 wards, the average asking price was 44,590,000 Yen, up 1.3% from the previous month and up 7.7% from last year. The average building age was 22.0 years. The price is now 5.7% below the peak of 47,280,000 Yen seen in February 2008.Read more


Japan's commercial land prices stop falling for first time in 7 years

Iwaki City Izumimoegidai
Izumimoegidai, Iwaki City.

On March 18, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the 2015 Chika-koji land prices for Japan. The nationwide average for commercial land prices saw no change from last year, ending a seven year streak of declining prices and indicating a possible recovery.

Residential land prices dropped by 0.4%. This was the 7th year of consecutive decline, although the rate of decline has been shrinking.

In Tokyo, Osaka and Nagoya, 70% of the surveyed commercial land sites saw an increase in prices, while 70% of the locations in regional areas saw a decline.

The Izumimoegidai neighbourhood in Iwaki City, Fukushima Prefecture, saw the highest increase in land prices in Japan with an increase of 17.1% from last year. The top 10 residential land price increases were all in Iwaki City, which has been seeing an influx in demand from people who were displaced after the 2011 Tohoku disaster.Read more


Tokyo office vacancy rates reach 6 year low

According to Miki Shoji’s Office Report, the vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.31% in February, down 0.05 points from January and down 1.70 points from last year. This is the lowest level seen since January 2009 and is the 20th month in a row to see an improvement in vacancy rates.

The vacancy rate in brand new office buildings was 29.31%, up 14.46 points from the previous month and up 9.66 points from last year. A large-scale office building was completed in February, which added to the supply for the month. Read more


New apartment prices in Tokyo at highest level in over 5 years

The Parkhouse Nishishinjuku Tower 60 1
The Parkhouse Nishishinjuku Tower 60 accounted for almost a third of the new apartment sales in the Tokyo metropolitan area in February.

According to the Real Estate Economic Institute, 2,598 brand new apartments were released for sale in greater Tokyo in February, up 54.7% from the previous month but down 2.0% from last year. This is the lowest level seen for the month of February since 2009.

1,935 apartments were sold, making the contract rate 74.5%, down 0.4 points from the previous month and down 6.1 points from last year.

The average new apartment price was 56,960,000 Yen, up 27.9% from the previous month and up 12.5% from last year. The average price per square meter was 812,000 Yen, up 27.1% from the previous month and up 14.7% from last year.

699 apartments in high-rise buildings (over 20 storeys) were offered for sale, up 78.3% from last year. The contract rate was 87.3%, down 0.5 points from last year.Read more


February 2015 rental data - Tokyo Kantei

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,626 Yen/sqm in February, up 3.2% from the previous month and up 2.5% from last year. The average apartment size was 59.54 sqm and the average building age was 19.0 years.

In Tokyo’s 23-ku, the average monthly rent was 3,201 Yen/sqm, up 0.7% from the previous month and up 1.7% from last year. The average apartment size was 56.58 sqm and the average building age was 17.2 years.Read more


Central Tokyo apartment transactions reach record high for February

According to REINS, 3,292 second-hand apartments were sold across greater Tokyo in February, up 34.9% from the previous month but down 0.6% from last year. This is the 11th month in a row to see a year-on-year decline, although the rate of decline is the lowest seen so far.

The average apartment sale price was 29,260,000 Yen, up 4.6% from the previous month and up 8.7% from last year. The average price per square meter was 450,000 Yen, up 2.9% from the previous month and up 8.0% from last year. The average building age was 19.33 years.

1,572 second-hand apartments were sold in the Tokyo metropolitan area, up 31.8% from the previous month but down 4.1% from last year. The average sale price was 36,410,000 Yen, up 9.6% from the previous month and up 10.7% from last year. The average price per square meter was 605,900 Yen, up 6.8% from the previous month and up 11.3% from last year. The average building age was 18.37 years.

In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 187 apartments were sold, up 50.8% from the previous month and up 8.1% from last year. This is the highest number of transactions in February since REINS began recording data in 2008.Read more


Residential yields in Minato-ku - March 2015

Minato Tokyo Yields Mar 2015

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in March was 5.0%, down 0.2 points from the previous month and down 0.5 points from last year. The average gross yield across Tokyo was 6.6%, down 0.2 points from the previous month and down 0.7 points from last year.

The average asking price of a second-hand apartment in Minato-ku was 890,457 Yen/sqm as of March 1, up 0.7% from the previous month and up 14.2% from last year. The average asking price for land was 1,246,667 Yen/sqm, down 0.6% from the previous month but up 17.2% from last year.

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