Greater Tokyo apartment sale prices increase for 39th consecutive month
According to REINS, 3,590 second-hand apartments were sold across greater Tokyo in March 2016, up 1.4% from the previous month but down 3.7% from last year.
The average sale price was 30,560,000 Yen, up 0.4% from the previous month and up 4.6% from last year. The average price per square meter was 477,800 Yen, up 1.4% from the previous month and up 5.4% from last year. This is the 39th month in a row to see a year-on-year increase in prices. The average building age was 20.00 years.
In the Tokyo metropolitan area, 1,806 second-hand apartments were sold, up 2.7% from the previous month but down 2.0% from last year. The average sale price was 37,690,000 Yen, up 1.4% from the previous month and up 5.9% from last year. The average price per square meter was 643,900 Yen, up 4.0% from the previous month and up 7.0% from last year. The average building age was 19.46 years.
There were 93 reported sales of apartments priced over 100 million Yen in the Tokyo metropolitan area in the first quarter of 2016, an increase of 12% from the same period in 2015. Transactions of apartments priced over 70 million Yen have increased by 21% from the first quarter of 2015.
Okinawa property prices on the rise
Okinawa’s real estate market has been benefiting from a growing population and improving tourist market. As a result, government assessed land prices have increased for the past three years.
In 2013, an apartment priced at 140 million Yen in a brand new building in Naha City had six offers, with the developer picking the lucky buyer from a raffle-type system. In 2015, a 180 sqm block of residential land in Naha’s Shuri district went under contract within a day of being listed for sale. Residential land in the popular Shuri district has increased by approximately 10,000 ~ 15,000 Yen/sqm over the past year to around 100,000 ~ 150,000 Yen/sqm (85 ~ 130 USD/sq.ft).Read more
Residential yields in Minato-ku - April 2016
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in Tokyo was 4.3% in April 2016, down 0.2 points from the previous month and down 0.5 points from last year. The average yield across Tokyo was 6.0%, down 0.2 points from the previous month and down 0.6 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 969,714 Yen/sqm, up 7.1% from the previous month and up 10.3% from last year. The average asking price for land was 1,363,030 Yen/sqm, down 0.6% from the previous month but up 13.0% from last year.Read more
100 million Yen-plus apartments not limited to central Tokyo
100 million Yen-plus apartments are starting to appear in station developments across Japan, and not just in central Tokyo. According to the Real Estate Economic Institute, there were a total of 1,688 brand new apartments priced over 100 million Yen (approx. 905,000 USD) released for sale in greater Tokyo in 2015.
All apartments in Proud Tower Tachikawa - a 32-storey, 319-unit residential tower connecting to Tachikawa Station in west Tokyo - sold out prior to completion, despite having strong pricing of around 1,000,000 Yen/sqm (840 USD/sq.ft). Apartments on the top floor were priced over 100 million Yen. The average age of a buyer was 53, and approximately 40% of the buyers were doctors and medical professionals. The building is due for completion in August 2016.
A 30-storey high-rise apartment building is currently under construction in front of Atami Station in Shizuoka Prefecture. The Crest Tower Atami is due for completion in February 2017. Apartments are priced at around 600,000 ~ 700,000 Yen/sqm (505 ~ 590 USD/sq.ft). A 124 sqm (1,334 sq.ft) 2-Bedroom apartment on the top floor was priced at 145 million Yen (1.3 million USD).Read more
Construction on Olympic Athlete’s Village to start this month
On March 31, the Tokyo Metropolitan Government announced the post-olympic plans for the 44 hectare Athlete’s Village in the Tokyo bay area.
For the duration of the Olympics and Paralympics, athlete accommodation will be provided in 21 buildings ranging from 14 to 18 storeys. Afterwards, these existing buildings will be converted into condominium and rental apartments by private developers. After the games, construction will begin on two 50-storey high-rise apartment buildings. The entire project is expected to be completed by 2024.Read more