Average asking price of an apartment in Tokyo up 1.1% from last year
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment across greater Tokyo was 35,660,000 Yen in August 2017, up 0.1% from the previous month and up 1.3% from last year. Prices continue to remain stable in the 35 million Yen range since November 2016. The average building age was 23.0 years.
In Tokyo’s 23 wards the average asking price was 53,380,000 Yen, up 0.2% from the previous month and up 1.1% from last year. The average building age was 22.4 years.
Apartment occupancy rates reach record high in Japan
The average occupancy rate of rental apartment buildings acquired by J-REITs has been steadily improving since 2010 and has exceeded levels last seen during the peak in 2008. In the second half of 2016 the average occupancy rate was 96%, a record high.
This is due both to an improving property market and REITS acquiring relatively new buildings in prime, central locations. While occupancy rates remain high in Tokyo, other cities across the country are seeing a reversal with a declining trend evident since 2013.
Trends in cities other than Tokyo:
- Sapporo: Although occupancy levels are relatively high, they have been decreasing since late 2014.
- Sendai: Occupancy rates reached record highs due to housing demand following the Tohoku disaster in 2011, but have been slowly falling. Sendai has seen the highest decline of all cities.
- Yokohama: Occupancy has been falling since mid-2013, although there was an improvement in the second half of 2016.
- Nagoya: Occupancy rates have been falling since 2013 and are sitting at a comparatively low level.
- Osaka: Occupancy rates have been improving since late 2015 and are at a relatively high level.
- Fukuoka: Occupancy rates have been steadily falling. The rate of decline has been influenced by a building with an occupancy rate of less than 80%.
*Central Tokyo 5 wards: Chiyoda, Chuo, Minato, Shinjuku, Shibuya.
Source: Mizuho Real Estate Market Report, July 14, 2017.
Tokyo apartment asking prices in July 2017
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment across greater Tokyo was 35,620,000 Yen in July, showing no change from the previous month but up 1.9% from last year. The average building age was 22.9 years.
In Tokyo’s 23 wards, the average asking price was 53,260,000 Yen, up 0.3% from the previous month and up 0.9% from last year. The average building age was 22.3 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 72,860,000 Yen, down 0.4% from the previous month but up 1.4% from last year. The average building age was 20.6 years.
32 million Yen lawsuit filed against illegal Airbnb hosts in Osaka apartment building
The owners association of a condominium in Osaka’s Minami district have filed a lawsuit with the Osaka District Court seeking 32,670,000 Yen (approx. 300,000 USD) in damages from hosts providing illegal overnight accommodation in the building.
According to the association, 5 of the 100 apartments in the 10 year old building have been rented out to overnight guests using online booking sites, contravening the building management bylaws. The association made attempts to have the hosts, who also owned the apartments, stop the activity by imposing fines of 50,000 Yen per day and putting up posters in the building. However, their attempts were ignored.
Average apartment rent in June 2017
According to Tokyo Kantei, the average monthly rent of a condominium-type apartment across greater Tokyo in June 2017 was 2,619 Yen/sqm, down 0.5% from the previous month but up 0.5% from last year. The average apartment size was 59.62 sqm and the average building age was 20.4 years.
In the Tokyo metropolitan area the average monthly rent was 3,128 Yen/sqm, down 0.4% from the previous month and down 0.1% from last year. The average apartment size was 56.51 sqm and the average building age was 18.5 years.
In Tokyo’s 23 wards the average monthly rent was 3,292 Yen/sqm, down 0.2% from the previous month but up 0.1% from last year. The average apartment size was 55.78 sqm and the average building age was 17.8 years.
Both Yokohama and Saitama cities saw a large increase in average rents due to a larger share of transactions on newer apartments in more central locations, and a smaller share of transactions for older buildings that generally command lower rents.
Sales start in 50-storey high-rise in Osaka
Off-the-plan sales in the 50-storey Branz Tower Umeda North condominium began over the weekend, with the most expensive unit in the building - a 145 square meter three-bedroom penthouse - priced at 270 million Yen (approx. 2.37 million USD). A total of 218 apartments were offered for sale in the first round, representing a third of the total units in the building. Sale prices ranged from 36 to 270 million Yen and sizes ranged from 42 ~ 145 sqm (452 ~ 1,560 sq ft).
The 653-unit building is due for completion in November 2019 with apartments delivered to buyers from February 2020 onwards.
Tokyo apartment asking prices in May 2017
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment across greater Tokyo was 35,720,000 Yen in May, up 0.3% from the previous month and up 3.5% from last year. The average building age was 22.8 years.
In the Tokyo metropolitan area, the average asking price was 48,220,000 Yen, down 0.4% from the previous month but up 1.2% from last year. The average building age was 22.3 years.
In Tokyo’s 23 wards, the average asking price was 53,170,000 Yen, down 0.1% from the previous month but up 0.9% from last year. The average building age was 22.2 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 73,360,000 Yen, up 0.5% from the previous month and up 2.7% from last year. Thea average building age was 20.0 years.