New apartment prices in Tokyo up 25% in January
According to the Real Estate Economic Institute, 1,384 new apartments were released for sale across greater Tokyo in January, down 80.2% from the previous month and down 7.4% from last year. 852 apartments were sold, resulting in a contract ratio of 61.6%, down 15 points from the previous month but up 3.0 points from last year.
167 apartments in high-rise buildings (over 20 stories) were released for sale, up 122.7% from last year. The contract ratio was 77.8%, up 45.8 points from last year.
The average price of a new apartment across greater Tokyo was 69,110,000 Yen, up 36.1% from the previous month and up 24.1% from last year. The average price per square meter was 976,000 Yen, up 29.3% from the previous month and up 25.0% from last year.Read more
Post-2020 Real Estate Developments in Tokyo
Construction in Tokyo does not look like it will slow down after the 2020 Olympics, with several major projects already in the pipeline.
390m tall tower for Tokyo Station (2021 ~ 2027)
Located just 300 meters north of Tokyo Station, the Tokiwabashi District Redevelopment will include two high-rise towers - a 37-storey, 230m tall office tower due for completion in 2021 and a 61-storey, 390m tall office tower due for completion in 2027. This will be Japan’s tallest building when complete.Read more
Two new 56-story apartment towers for Kachidoki island
Two high-rise apartment buildings are planned for Toyomicho, an area which adjoins the Kachidoki address on a man-made island in Tokyo Bay.
The Toyomicho District Redevelopment will include two 56-story buildings containing a total of 2,150 apartments and 631 car parking spaces. Construction is scheduled to start in 2020 with completion by 2025. With a total height of 189 meters, the buildings will be slightly shorter than the nearby The Tokyo Towers (193 meters). Due to its proximity to the water, a seawall will be built to protect the building from flooding or tidal inundation.Read more
Tokyo second-hand apartment sale prices increase for 52nd month in a row
According to REINS, 2,861 second-hand apartments were sold across greater Tokyo in January 2017, down 4.4% from the previous month but up 7.8% from January 2016. This is the 5th month in a row to see an increase in transactions from 12 months prior. The average sale price was 31,380,000 Yen, up 0.5% from the previous month and up 5.1% from last year. The average price per square meter was 493,500 Yen, down 0.9% from the previous month but up 5.4% from last year. This is the 52nd month in a row to see a year-on-year increase. The average building age was 20.20 years.
In the Tokyo metropolitan area, 1,495 second-hand apartments were sold, down 3.1% from the previous month but up 15.7% from last year. This is the 10th month in a row to see a year-on-year increase in transactions. The average sale price was 38,180,000 Yen, down 2.3% from the previous month but up 2.9% from last year. The average price per square meter was 647,800 Yen, down 3.3% from the previous month but up 2.3% from last year. The average building age was 18.83 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 200 second-hand apartments were sold, down 13.0% from the previous month but up 17.6% from last year. This is the 5th month in a row to see a year-on-year increase in transactions. This is the highest number of recorded transactions for the month of January since record-keeping began in 2008, and is double the average seen between 2008 and 2012. The number of new listings were also down for the 3rd month in a row, with 1,370 apartments listed for sale in January 2017, down 5.1% from last year.
The average sale price was 52,500,000 Yen, down 9.9% from the previous month but up 0.9% from last year. The average price per square meter was 998,800 Yen, down 4.3% from the previous month and down 0.3% from last year. The average building age was 16.19 years.
Past transactions in central Tokyo’s 3 wards in January:
- 2017: 200
- 2016: 170
- 2015: 124
- 2014: 162
- 2013: 140
- 2012: 100
- 2011: 114
- 2010: 100
- 2009: 88
- 2008: 90
Less than 2% of apartments in Tokyo are over 110 sqm
According to research firm MRC, less than 2% of the apartments built for sale in Tokyo’s 23 wards between 2002 and 2016 were over 110 square meters (1,184 sq ft) in size. Almost 80% of apartments supplied were below 80 sqm (861 sq ft) in size.
The typical size of a 3-Bedroom apartment is around 70 sqm (753 sq ft). Buyers looking for spacious apartments over 100 sqm will find supply incredibly limited. Prices, too, will be comparatively high since apartments over 100 sqm are considered to be luxury-grade and are often only found on upper floors or in high-end buildings.Read more
Demolition underway on Omotesando public housing complex
Demolition of the old Aoyama Kitamachi Apaato housing complex in Omotesando is underway. Asbestos removal from four buildings is currently being carried out. Asbestos sheeting and spray-on insulation was used in some of the buildings’ rooftop waterproofing, plumbing insulation, and chimneys.
The city-owned public housing estate will soon be replaced with high-rise residential, aged care facilities and retail space.
The Tokyo Metropolitan Government has chosen six developers to partake in the project, including Tokyo Tatemono, Mitsui Fudosan, Kajima Corporation and Maeda Corporation.Read more
Mitsubishi enters apartment building renovation and resale market
Mitsubishi Jisho Residence is entering the building renovation and resale market with their first project in Shirokane now on sale. With a severe shortage of apartment development sites, high land prices and construction costs, developers have been turning to their attention to the resale market. Rental apartment buildings are being bought up by major developers, tenants slowly evicted, and the vacant and renovated apartments offered up for sale individually on the resale market.Read more