Central Tokyo's luxury apartment market reaches new highs
Although sales are sluggish in suburban areas, a sales war is erupting between Japan’s top property developers as they battle to out-do each other with luxurious residential projects in Tokyo’s centre. The battleground is Tokyo’s Minato Ward, in wealthy neighbourhoods where prices have always been relatively high.
Many of these new condominium developments are located in the vicinity of Tokyo Midtown - a mixed-use office, retail, hotel and rental apartment complex in the Akasaka/Roppongi district. Read more
Tokyo apartment asking prices in July 2016
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo in July 2016 was 34,940,000 Yen, up 0.6% from the previous month and up 13.9% from last year. This is the 7th month in a row to record an increase from the previous month. The average building age was 22.4 years.
In the Tokyo metropolitan area, the average asking price was 47,860,000 Yen, down 0.1% from the previous month but up 12.2% from last year. This ends a 24-month streak of consecutive monthly price increases. The average building age was 22.0 years.
In Tokyo’s 23 wards, the average asking price was 52,790,000 Yen, down 0.2% from the previous month but up 10.8% from last year. The average building age was 21.9 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average asking price was 71,850,000 Yen, up 0.5% from the previous month and up 7.3% from last year. The average building age was 20.0 years.Read more
Luxury onsen planned for Lake Shikotsu, Hokkaido
Tsuruga Holdings will be developing a luxury hot spring resort in Shikotsuko Onsen in Chitose, Hokkaido.
The hotel group plans to demolish the existing Shikotsuko Hokkai Hotel and replace it with a 3-storey, 24-room hotel with completion scheduled for early 2018. The new resort will feature open air ‘rotemburo’ hot spring baths in each room.Read more
Average apartment rent in July 2016
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,652 Yen/sqm in July, up 1.8% from the previous month and up 2.4% from last year. A larger share of transactions in the Tokyo metropolitan area, where rents are higher than surrounding areas, pulled up the average. The average apartment size was 59.40 sqm and the average building age was 20.0 years.
In the Tokyo metropolitan area, the average monthly rent was 3,144 Yen/sqm, up 0.4% from the previous month but showing no change from last year. The average apartment size was 57.22 sqm and the average building age was 18.3 years.Read more
Supply of investment-type apartments up in 2016
According to the Real Estate Economic Institute, the supply of brand new investment-type apartments in the greater Tokyo area in the first half of 2016 reached 4,121 units, up 19.3% from the first half of 2015.
Increasing construction costs and high land prices are forcing developers to focus on projects outside of Tokyo’s city centre. The highest supply was in Kawasaki City’s Kawasaki Ward which had 603 brand new investment apartments.
The average apartment price was 27,540,000 Yen, up 1.7% from 2015. The average price per square meter was 1,113,000 Yen, up 5.2% from 2015. The average apartment size was 24.75 sqm (266 sf), 3.3% smaller than last year.
34.0% of the apartments were priced under 25,000,000 Yen (the share in the first half of 2015 was 45.2%). Read more
New apartment supply in Tokyo down for 8th month
According to the Real Estate Economic Institute, 3,317 brand new apartments were released for sale in greater Tokyo in July, up 8.8% from the previous month but down 30.7% from last year. This is the 8th month in a row to see a year-on-year decline in supply.
A shortage in the construction of large-scale projects has been a contributing factor to the decrease in supply.
2,101 apartments were sold, resulting in a contract ratio of 63.3%, down 6.3 points from the previous month and down 20.4 points from last year. 220 apartments in high-rise buildings (over 20-storeys) were offered for sale, down 87.2% from last year. The contract ratio was 54.1%, down 26.9 points from the previous month and down 38.2 points from last year.
The average price of a new apartment across greater Tokyo was 56,560,000 Yen, down 0.3% from the previous month and down 5.0% from last year. The average price per square meter was 806,000 Yen, down 2.1% from the previous month and down 5.2% from last year.Read more