Tokyo Apartment Sales in December 2022
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of December 2022:
Our Japan Property Market Report for 2022
2022 was a year of turmoil for markets, with interest rate rises, high inflation, and ongoing supply chain disruptions. Japan did not suffer to the same extent, with interest rates and inflation remaining low. The stable domestic conditions favored the real estate market with prices continuing to rise throughout the year.
Please feel free to view or download the PDF of our annual Japan Property Market Report, linked below.
Apartment prices in central Tokyo hit new high in November
Apartment prices in central Tokyo hit a new record high in November, with REINS reporting the average reported sale price of a second-hand apartment in the central three wards at 1,627,200 Yen/sqm. This is a 3.3% increase from the previous month and an 18.2% increase from last year. It’s the highest price-per-square-meter on recent record.
Expected rental yields on Tokyo real estate assets hit 23-year low
Investors are expecting lower rental yields from office and residential assets in Tokyo. According to the Japan Real Estate Institute’s investors survey published on November 2022, the expected rental yield on Class A office space in Tokyo’s Marunouchi and Otemachi district was 3.2% as of October 2022, down from a 3.3% expected yield in April.
Office buildings see improved earnings rate in 2022
On November 29, the Japan Real Estate Institute released its six-monthly report on the total earnings rate (rental income and capital gains) of office buildings in central Tokyo.
Tokyo’s newest and most expensive apartments
Although it is still decades behind, Tokyo’s luxury* property market is finally starting to catch up with its international counterparts. Several new projects in the city center have lifted the bar for pricing and design.
How much can you expect to pay?
Japan's property price index illustrates recent growth in house and land prices
On November 30, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released the nationwide property price index for the month of August 2022. What is interesting to note is the recent growth in residential land and detached house prices. Both segments had remained somewhat flat for around 10 years, but have seen a surge in price appreciation since mid-2020.