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

Share house investors find themselves entangled in alleged mortgage fraud

The Asahi Shimbun newspaper has reported on potential mortgage fraud occurring with companies that tout share houses to real estate investors.

When buying an investment property from one of these companies, buyers typically entrust the entire loan application process to one of the many real estate agencies connected to the seller. The seller's side will take copies of the buyer's bank book showing their savings. At some point, and by whom remains unclear, the documents submitted to the bank are forged in order to improve the chance of obtaining finance or obtaining a loan much larger than would normally be approved. There are apparently cases where a buyer’s savings have been falsely inflated by as much as 10 times the true amount, along with false records showing a large deposit made to the seller.Read more

by Zoe Ward

New apartment prices in Greater Tokyo drop 20% in January

According to the Real Estate Economic Institute, 1,934 brand new apartments were released for sale across greater Tokyo in January, down 70.2% from the previous month but up 39.7% from January 2017.

The average sale price was 52,930,000 Yen, down 23.4% from last year. The average price per square meter was 787,000 Yen, down 19.3% from last year. In January 2017, new apartment prices saw a steep jump from the year before, with prices rising by 24.1%. If several high-end projects are released onto the market it can pull up average prices for the month.Read more

by Zoe Ward