Average apartment rent in April 2017
According to Tokyo Kantei, the average monthly rent of a condominium apartment across greater Tokyo in April 2017 was 2,654 Yen/sqm, down 1.0% from the previous month and down 0.5% from last year. The average apartment size was 60.29 sqm and the average building age was 20.2 years.
In the Tokyo metropolitan area, the average monthly rent was 3,158 Yen/sqm, down 0.7% from the previous month but up 0.1% from last year. The average apartment size was 57.69 sqm and the average building age was 18.4 years.
In Tokyo’s 23 wards, the average monthly rent was 3,321 Yen/sqm, down 0.6% from the previous month but up 0.4% from last year.Read more
88-yr old building on 2.6 hectare site in Minato to be sold
Japan Post Insurance is selling their former Tokyo Service Center building and land in Mita, Minato-ku, Tokyo. The potential sale price and date has yet to be confirmed, although it is expected that the property will be offered for sale by tender. With land of this size, the eventual sale price is likely to be in the 10s of billions of Yen (several hundred million USD).
Japan Post Insurance expects to report a capital gain of 30 billion Yen (approx. 270 million USD) on the sale, which, given their very long history of ownership of the property, may be a close indicator of their preferred sale price.
*Update: The property was sold to Mitsui Fudosan Residential in February 2018. Japan Post Insurance posted a capital gain of 85.03 billion Yen (approx. 780 million USD) on the sale.
The property is located along the street from the Australian Embassy and directly across the street from the historic Tsunamachi Mitsui Club - a members only club that was built in 1913 for the Mitsui family.
The Art Deco building was once theMinistry of Communications and Transportation Postal Life Insurance Building. It was constructed by Obayashi Corporation in 1929 at a cost of 4,350,000 Yen. In those days the annual salary of a doctor was around 4,800 Yen.Read more
Temple to develop boutique hotel-style accommodation
Eihei-ji, a buddhist temple in Fukui Prefecture, is developing boutique hotel-style accommodation facilities within temple-owned land. The 18-room hotel will be able to host up to 72 guests in Japanese/Western-style rooms. Guests will be able to experience zazen seated meditation and traditional vegetarian cuisine.
The hotel, which is scheduled to open in late 2019, will be managed and operated by Fujita Kanko Inc. The company operates numerous hotels across Japan including the five-star Hotel Chinzanso in Tokyo.Read more
Tokyo apartment sale prices increase for 55th month
According to REINS 3,163 second-hand apartments were sold across greater Tokyo in April, down 15.0% from the previous month and down 4.0% from last year. The average sale price was 32,450,000 Yen, up 3.2% from the previous month and up 11.2% from last year. This is the first time since December 2014 that year-on-year double-digit growth has been reported.
The average price per square meter was 504,000 Yen, up 2.3% from the previous month and up 8.4% from last year. The average building age was 20.09 years.Read more
Tokyo office rents increase for 40th consecutive month
According to Miki Shoji’s Office Report, the office vacancy rate in Tokyo’s five central business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya was 3.39% in April 2017, down 0.21 points from the previous month and down 0.84 points from last year. This is the lowest vacancy level seen in 9 years. The vacancy rate in Shinjuku was 2.03% - the lowest of all five wards and down 2.20 points from April 2016.
| Vacancy rates in Tokyo: | |
| Chiyoda | 3.31% (-0.26 points from Apr. 2016) |
| Chuo | 3.09% (-0.98 points) |
| Minato | 4.55% (-0.93 points) |
| Shinjuku | 2.03% (-2.20 points) |
| Shibuya | 2.22% (-0.03 points) |
AVERAGE OFFICE RENT
Office rents increased for the 40th month in a row. The average rent in April 2017 was 18,583 Yen per Tsubo* (5,622 Yen/sqm) in April, up 0.4% from the previous month and up 4.1% from last year. The average rent on brand new construction was 26,785 Yen per Tsubo (8,104 Yen/sqm), down 6.8% from last year.
| Average monthly office rent in Tokyo (Rent per Tsubo): | |
| Chiyoda | 20,373 Yen (+4.6% from Apr. 2016) |
| Chuo | 17,283 Yen (+4.2%) |
| Minato | 19,298 Yen (+4.2%) |
| Shinjuku | 16,297 Yen (+5.3%) |
| Shibuya | 20,507 Yen (+1.7%) |
Source: Miki Shoji, May 2017.
Average discount of an apartment sold in 2016
According to Tokyo Kantei, in 2016 approximately 40% of second-hand apartments in the greater Tokyo area sold within a month of listing, and at an average discount of 3.00%. Two-thirds of apartments sold within the first three months of being listed.
Almost a third of the apartments that sold within a month of being listed sold at full asking price.
Apartment size vs. discounts and selling time
In greater Tokyo, the average discount across all apartment sizes and regardless of listing time was 8.70%.Read more