Tokyo apartment sale prices increase for 49th month
According to REINS, 3,339 second-hand apartments were sold across greater Tokyo in October, up 6.0% from the previous month and up 16.1% from last year. The average sale price was 31,360,000 Yen, up 0.3% from the previous month and up 6.4% from last year. The average price per square meter was 485,800 Yen, down 1.0% from the previous month but up 6.1% from last year. This is the 46th month in a row to see a year-on-year increase. The average building age was 19.73 years.
In the Tokyo metropolitan area, 1,683 second-hand apartments were sold, up 1.9% from the previous month and up 18.9% from last year. The average sale price was 38,270,000 Yen, down 0.2% from the previous month but up 3.8% from last year. The average price per square meter was 638,900 Yen, down 1.4% from the previous month but up 3.2% from last year. This is the 49th month in a row to see a year-on-year increase. The average building age was 18.87 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 193 second-hand apartments were sold, up 1.6% from the previous month and up 7.8% from last year. The average sale price was 58,640,000 Yen, down 10.9% from the previous month but up 2.5% from last year. The average price per square meter was 1,020,500 Yen, down 6.7% from the previous month and down 1.9% from last year. The average building age was 14.64 years.
The most expensive addresses in Tokyo to buy an apartment
Tokyo Kantei ranked the most expensive neighbourhoods in Tokyo to buy a second-hand apartment. Central Tokyo’s prime areas dominated the rankings, with 17 of the areas located in Minato Ward, 13 in Shibuya and 11 in Chiyoda.
MOTOAZABU
In top spot was the Motoazabu address in Minato Ward with an average apartment price of 2,133,000 Yen/sqm (1,855 USD/sq.ft). The most expensive apartment in this neighbourhood was 3,063,000 Yen/sqm and the cheapest was 1,093,000 Yen/sqm.Read more
Price-earnings ratio for apartments in Tokyo reaches record high in 2016
According to Tokyo Kantei, the price-earnings ratio (PER) for brand new apartments in the greater Tokyo area reached a record high of 28.66 in 2016, up 1.36 points from 2015 and the highest level seen since reporting began in 2002. A PER of 28.66 indicates a gross yield of approximately 3.51%.
Price growth of new apartments has far exceeded the change in rental prices, resulting in yields dropping to record lows. The average price of a brand new 70 sqm (753 sq.ft) apartment in greater Tokyo was 59,980,000 Yen in 2016, up 26.3% from 2012. The average rent of a 70 sqm apartment in 2016 was 175,551 Yen/month, up 4.8% from 2012.
The greater Osaka and Nagoya regions also had PERs of around 28 in 2016.
Toranomon area most profitableRead more
Tokyo apartment sales in October 2016
The following is a selection of apartments that were sold in central Tokyo during the month of October 2016:Read more
Second-hand apartment price growth slows in first half of 2016
According to Tokyo Kantei, the half-yearly rate of growth in the price of second-hand apartments in Tokyo has slowed in the first half of 2016 after seeing strong and likely unsustainable gains over the past three years.
Second-hand apartment prices in central Tokyo have increased by 32.7% from the bottom seen in the second half of 2012, and are up 6.1% from the first half of 2015. However, prices have only increased by 0.06% between the second half of 2015 and the first half of 2016.Read more