Steep increase in house prices in central Tokyo

We are often asked how the Tokyo property market is moving. Is it slowing down or showing signs of steadying? We are still seeing some big price increases occurring, particularly in the detached house market. Compared to apartments, houses in central Tokyo are in extremely short supply and are difficult to find comparisons for, making it easier for sellers to ask bolder prices.

In some cases the properties have been given a quick makeover to justify a higher price, but in other cases the price has been increased to match recent market conditions.

Case 1: A 4-Bedroom house in the Azabu area

In mid-2016 we managed to negotiate a price of 180 million Yen for our client, who passed on the deal.  It was re-listed in December 2016 for approximately 240 million Yen, a 30% increase in 6 months.Read more

by Zoe Ward

Tokyo Apartment Sales in December 2016

The following is a selection of apartments that were sold in central Tokyo during the month of December 2016:Read more

by Zoe Ward

New apartment supply in Tokyo sinks to 41 year low

According to the Real Estate Economic Institute, 2,701 new apartments were offered for sale across greater Tokyo in November, down 7.0% from the previous month and down 22.7% from 2015. This is the lowest level seen for the month of November since 1975. The leading cause of the drop in supply was that there were very few large-scale, 100-unit-plus apartment buildings offered for sale.

1,689 apartments were sold, resulting in a contract ratio of 62.5%, up 0.9 points from the previous month but down 19.6 points from last year.

195 apartments in high-rise buildings (over 20-storeys) were released for sale, up 27.5% from the previous month but down 83.1% from last year. The contract ratio was 65.1%, down 27.2 points from last year.

The average price of a new apartment across greater Tokyo was 51,610,000 Yen, down 4.5% from the previous month and down 18.4% from last year. The average price per square meter was 749,000 Yen, down 5.5% from the previous month and down 14.0% from last year.Read more

by Zoe Ward

Tokyo apartment sale prices increase for 50th month

According to REINS, 2,985 second-hand apartments were sold across greater Tokyo in November, down 10.6% from the previous month but up 0.5% from last year. The average sale price was 31,730,000 Yen, up 1.2% from the previous month and up 8.8% from last year. The average price per square meter was 496,800 Yen, up 2.3% from the previous month and up 8.0% from last year. This is the 50th month in a row to see a year-on-year increase. The average building age was 20.27 years.

In the Tokyo metropolitan area, 1,553 second-hand apartments were sold, down 7.7% from the previous month but up 3.5% from last year. The average sale price was 39,190,000 Yen, up 2.4% from the previous month and up 8.5% from last year. The average price per square meter was 660,300 Yen, up 3.4% from the previous month and up 6.6% from last year. The average building age was 19.12 years.

Central Tokyo’s 3 wards

In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 205 second-hand apartments were sold, up 6.2% from the previous month and up 10.2% from last year. This is the highest number of transactions recorded for the month of November since record-keeping began in 2008, and is close to double the number of transactions seen in 2009 and 2011.

The average sale price was 57,690,000 Yen, down 1.6% from the previous month but up 7.3% from last year. The average price per square meter was 1,027,900 Yen, up 0.7% from the previous month and up 2.2% from last year. The average building age was 17.32 years.

New listings in central Tokyo were down 0.2% from last year. This is the first time in two years that the number of new listings has decreased from 12 month’s prior.

Read more

by Zoe Ward