Has the pandemic affected the supply and price of new and existing apartments?
Research provider Tokyo Kantei has released several reports looking at the state of Japan’s apartment market amidst the coronavirus pandemic, and it’s not all doom and gloom. Let’s take a look at some of the findings below.
Average apartment rent in Tokyo reaches new record high in April
The average monthly rent of a condo-style apartment in Tokyo’s 23 wards saw a slight month-on-month increase of 0.2% in April. The average rent has risen 5.8% from April 2019 to 3,855 Yen per square meter. Rents are now up approximately 29.4% from the bottom seen in late 2012.
400-meter long building for Nagoya Station area
Four developers are working towards a large-scale redevelopment that will see a 400-meter long, 30-story mixed-use building for the Nagoya Station area.
Central Tokyo apartment asking prices reach record high in September
Last month, the average asking price of a 70 sqm second-hand apartment in central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Shibuya, and Bunkyo) exceeded the 80 million Yen mark. This is the highest level seen since real estate data provider Tokyo Kantei began keeping records in 2002.
Rosenka land values increase for 4th year in a row
The rosenka land values for 2019 were announced by the National Tax Agency on July 1. Nationwide, land values increased by 1.3%. This is the fourth year in a row to record a year-on-year increase. The rate of growth has also expanded, following 0.7% in 2018, 0.4% in 2017 and 0.2% in 2016. This is the first time to see four years of consecutive growth since 1992.
Apartment rents in Tokyo increase by 5.3% in 2018
The average rent for an apartment in Tokyo’s 23 wards saw a 5.3% year-on-year increase in 2018 - the highest annual percentage increase in over 10 years. This was due in part to the fact that over 10% of the listings in the first half of the year were new construction. Newly built apartments tend to command higher rents than older ones, and can pull up the average. Average rents in Tokyo are now up 16% from their bottom in 2012.