Tokyo's apartment market summary for 2012

The following is a summary of findings from the Real Estate Economic Institute's report on the apartment market in greater Tokyo in 2012:

  • 45,602 new apartments hit the market in 2012, an increase of 2.5% from 2011. This is far below the record of 95,635 new units that were available in 2000. Read more

by Zoe Ward

Rents up across Japan

According to Tokyo Kantei, the average rent for a condominium apartment (one with a private landlord, rather than a rental-only building) increased in Japan's three major regions in December.

The average monthly rent in greater Tokyo (Tokyo, Kanagawa, Saitama and Chiba) in December increased by 3.0% from the previous month to 2,540 Yen/sqm, although it remains 1.1% lower than December 2011.Read more

by Zoe Ward

Vacancy rate for distribution facilities at low level

Prologis Park Zama 2

According to research by Ichigo Real Estate Service, the vacancy rate for distribution facilities in greater Tokyo in October 2012 was 2.5%. While this figure has increased by 0.2% since the last data collection in July, it remains at a very low level.

With the completion of Prologis Park Zama 2 in August, the new supply of distribution facilities reached a three year high of 808,500 sqm (8,699,460 sqft). Most of the new space was taken up by demand, which reached 735,000 sqm (7,918,284 sqft). This helped to limit the rise in the vacancy rate.Read more

by Zoe Ward

New apartment supply in greater Tokyo down 14% in October

The total number of new apartments released for sale in greater Tokyo (Tokyo, Kanagawa, Chiba and Saitama) in October fell 14.4% from the year before to 2,887 units. This is the second month of decline after September's fall of 9.3%.

The most notable decline was in Tokyo's 23 wards, which saw a drop of 25.7%. According to local real estate agents, concerns over future economic conditions have possibly led to a drop in the number of high-priced apartments released for sale.Read more

by Zoe Ward

Tokyo apartment contract ratio drops below 70%

According to the Real Estate Economic Institute, the number of new apartments released for sale in September in greater Tokyo (Tokyo, Kanagawa, Saitama and Chiba) dropped 9.3% from last year to 3,366 units.

The contract ratio for the month was 69.3%. This was the first time in 13 months where the ratio fell below 70%. A ratio below 70% is considered to be a sign of a slump in demand.Read more

by Zoe Ward

Average apartment prices in Tokyo down 13.5% in August

According to research by AtHome, the average realized sale price of a secondhand apartment in greater Tokyo was 19,750,000 Yen in August, down 6.4% from the year before and 5.9% from last month. This is the first time in 2 years and 8 months that the price has fallen below the 20 million Yen mark.

The drop was particularly noticeable in Tokyo's 23 wards where sale prices fell 13.5% from one year prior, and 12.1% from the previous month. The average price per square meter in Tokyo's 23 wards fell 8% from last year to 446,100 Yen/smq, while in Chiba, it dropped 21.1% to 195,400 Yen/sqm. The average age of an apartment sold in greater Tokyo was 23.5 years.Read more

by Zoe Ward

Nationwide land price declines shrink in 2012

On September 20, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the results of the nationwide survey of land prices (chika-chosa). The average residential land price fell 2.5% (compared with a 3.2% fall in 2011), and the average commercial land price fell 3.1% (compared with a 4.0% fall in 2011). The rate of decline was smaller than normal this year, indicating that the market is heading towards a recovery. However, this is the 21st year of continual decreases in residential land prices, and the 5th year of continual decreases in commercial land prices.Read more

by Zoe Ward