Tokyo apartment sale prices increase for 65th month

According to REINS, 3,424 second-hand apartments were reported to have sold across greater Tokyo in February, up 29.6% from the previous month but down 1.1% from last year. The average sale price was 33,530,000 Yen, down 0.2% from the previous month but up 6.4% from last year. The average price per square meter was 511,900 Yen, down 0.8% from the previous month but up 3.9% from last year. This is the 62nd month in a row to see a year-on-year increase in sale prices.

1,762 second-hand apartments were sold in the Tokyo metropolitan area, up 25.6% from the previous month but down 1.2% from last year. The average sale price was 41,540,000 Yen, up 0.9% from the previous month and up 7.4% from last year. This is the highest sale price seen since REINS began publishing data in 2001. The average price per square meter was 677,100 Yen, down 0.5% from the previous month but up 4.0% from last year. This is the 65th month in a row to record a year-on-year increase in sale prices.Read more

by Zoe Ward

Only 0.9% of new apartments supplied in Tokyo in 2017 were over 100 sqm (1,076 sq.ft) in size

Finding a large apartment to buy in Tokyo can be a lot more challenging than many foreign buyers may initially realize. This is due to the fact that the majority of Japanese developers focus on building smaller apartments to cater to domestic demand. A typical three bedroom apartment for a Japanese family would be around 70 sqm (753 sq.ft).

According to Tokyo Kantei, only 0.9% of the new apartments supplied across greater Tokyo in 2017 were over 100 sqm (1,076 sq.ft) in size, up 0.1 points from 2016 but down 0.5 points from 2015.

90.3% of the apartments were under 80 sqm (861 sq.ft) in size.Read more

by Zoe Ward

Tokyo Apartment Sales in February 2018

The following is a selection of apartments that were reported to have sold in central Tokyo during the month of February 2018:Read more

by Zoe Ward

Apartment asking prices in Tokyo in January 2018

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) apartment across greater Tokyo was 35,980,000 Yen in January 2018, down 0.5% from the previous month but up 0.8% from last year. The average building age was 23.2 years.Read more

by Zoe Ward

Central Tokyo office rents increase for 49th month in a row

The average monthly office rent in central Tokyo’s business districts was 19,338 Yen per Tsubo (approx. 5,860 Yen/sqm) in January, up 4.1% from last year and the 49th month in a row to see a year-on-year increase. This is the highest level seen since October 2009. Office rents are now up 19.3% from their recent low of 16,207 Yen/Tsubo seen in December 2013, but are still 15.5% below a previous record high in mid-2008.

Vacancy rates were down 0.67 points from last year to 3.07%. This is similar to levels last seen in 2007 and a marked improvement from the average 8 ~ 9% vacancy rate seen between 2010 and 2014.Read more

by Zoe Ward

Prices for investment-grade properties could be reaching their limit

The average price of a second-hand apartment in Tokyo’s 23 wards has been steadily increasing since the end of 2012. In contrast to strong growth in sale prices, the rental market has lagged behind, with rent levels remaining relatively flat. Unless disposable incomes start to rise, it may be difficult for rents to increase at the same rate as sale prices.

Rising sale prices and flat rents have resulted in rental yields on investment-grade apartments hitting new lows. An investment-grade apartment is designed primarily for investors looking to rent out the unit to a tenant rather than home buyers. Apartments tend to be smaller in size and in buildings with fewer amenities and a cheaper finish. The market price of an investment-grade apartment will depend not only on comparable transactions, but also its current or expected yield.Read more

by Zoe Ward

Price of a new apartment in Japan reaches highest level in recorded history

The average price of brand new apartment released for sale across Japan hit a historic high in 2017. According to the Real Estate Economic Institute, the average price nationwide was 47,390,000 Yen, up 3.9% from 2016 and the highest price seen since record keeping began in 1973. A previous high of 46,180,000 Yen was last recorded in 2015.

The average price per square meter was 696,000 Yen, up 6.3% from 2016 and also the highest price on record. The previous record-high was 694,000 Yen/sqm in 1990.Read more

by Zoe Ward