New apartment prices down 10% in Tokyo

According to the Real Estate Economic Institute, 3,125 brand new apartments were released for sale in greater Tokyo in October, down 6.3% from the previous month and down 10.9% from last year. This is the 9th month in a row to see a year-on-year decline in supply.

The drop in supply is due primarily to an expected drop in demand following the increase in consumption tax in April 2014, as well as rising construction costs which are limiting the viability of many projects for developers. Sales for apartments priced under 40 million Yen have become particularly slow in recent months.

With recent data showing the second consecutive quarter of negative GDP growth in Japan, it seems highly probable that the next planned increase in the consumption tax rate will be delayed. A spokesperson from the Institute believes a delay in the next tax rise will provide a very positive benefit for the market.

1,978 apartments were sold, making the contract rate 63.3%, down 8.3 points from the previous month and down 16.3 points from last year. This is the lowest contract rate seen since February 2009 when it reached 61.7%. This is also the second month in a row where the rate has dropped below the 70% level which is considered to be the line between a positive and negative market conditions.Read more

by Zoe Ward

Apartment transactions down for 7th month while prices continue to rise

According to REINS, 2,655 second-hand apartments were sold across greater Tokyo in October, down 9.6% from the previous month and down 13.4% from last year. This is the 7th month in a row to see a year-on-year decline. The average apartment sale price across grater Tokyo was 28,120,000 Yen, up 2.2% from the previous month and up 8.0% from last year. The average price per square meter was 435,300 Yen, up 2.5% from the previous month and up 8.3% from last year. The average building age was 19.47 years.

1,299 second-hand apartments were sold in the Tokyo metropolitan area, down 8.8% from the previous month and down 10.2% from last year. This is also the 7th month in a row to see a year-on-year decline. The average apartment sale price was 34,780,000 Yen, up 3.0% from the previous month and up 7.3% from last year. The average price per square meter was 584,600 Yen, up 2.9% from the previous month and up 8.8% from last year. The average building age was 18.07 years.

In Shinjuku, Shibuya, Suginami and Nakano-ku, the average sale price per square meter increased by 20.8% from 12 months ago to 785,000 Yen/sqm, while the average building age was 19.28 years (down from 21.42 years in October 2013).Read more

by Zoe Ward

Japan's derelict home issue compounded by missing owners

Dealing with the growing number of abandoned and empty homes across Japan is proving to be a difficult task as out-of-date property titles are making it almost impossible to track down the owners, some of whom died decades ago. In many situations the local governments are unable to take any action without the consent of the property owner, and have no choice but to let dangerous and ageing buildings rot while they embark on a lengthy and complex process to find the owners.

Between July and August, the Mainichi Shimbin surveyed 355 local governments across the country that have enacted ordinances to deal with empty homes. Approximately half of them said they had cases where they could not locate the property owner and could not take any action. Of those, a third said that the building was not even registered on the land title, which made matters worse.Read more

by Zoe Ward

Tokyo apartment sales in October 2014

October apartment sales 2014

The following is a selection of apartments that were sold in central Tokyo during the month of October 2014:Read more

by Zoe Ward

Secondhand apartment prices in September 2014 - Tokyo Kantei

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 42,160,000 Yen in September, up 0.5% from the previous month and up 4.3% from last year. The average apartment age was 22.5 years.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 59,160,000 Yen, up 1.0% from the previous month and up 9.5% from last year. The average apartment age was 21.8 years.

The average price across greater Tokyo was 28,230,000 Yen, up 0.3% from the previous month and up 1.2% from last year. The average apartment age was 21.8 years.Read more

by Zoe Ward

September rental data - Tokyo Kantei

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,575 Yen/sqm in September, up 0.5% from the previous month and up 1.2% from last year. The average apartment size was 60.01 sqm and the average building age was 19.3 years.

The average rent in Tokyo’s 23-ku was 3,207 Yen/sqm, up 1.3% from the previous month and up 3.6% from last year. The average apartment size was 57.02 sqm and the average building age was 17.4 years.Read more

by Zoe Ward

Supply of new apartments in September down 44%

According to the Real Estate Economic Institute, 3,336 brand new apartments were released for sale in greater Tokyo in September, up 58.1% from the previous month but down 44.1% from last year. 2,388 apartments were sold, making the contract rate 71.6%. This is an increase of 2.0 points from the previous month but is a drop of 12.0 points from last year.

The average new apartment price was 47,640,000 Yen, down 16.2% from the previous month and down 5.6% from last year. The average price per square meter was 665,000 Yen, down 14.2% from the previous month and down 6.6% from last year.

411 apartments in high-rise buildings (over 20-storeys) were offered for sale, up 93.9% from the previous month but down 78.9% from last year. The contract rate was 78.3%, up 27.4 points from the previous month but down 11.6 points from last year.

Approximately 3,500 apartments are expected to be released for sale in October, which is similar to the 3,506 apartments released for sale in October 2013.Read more

by Zoe Ward