Tokyo second-hand apartment sale prices increase for 52nd month in a row
According to REINS, 2,861 second-hand apartments were sold across greater Tokyo in January 2017, down 4.4% from the previous month but up 7.8% from January 2016. This is the 5th month in a row to see an increase in transactions from 12 months prior. The average sale price was 31,380,000 Yen, up 0.5% from the previous month and up 5.1% from last year. The average price per square meter was 493,500 Yen, down 0.9% from the previous month but up 5.4% from last year. This is the 52nd month in a row to see a year-on-year increase. The average building age was 20.20 years.
In the Tokyo metropolitan area, 1,495 second-hand apartments were sold, down 3.1% from the previous month but up 15.7% from last year. This is the 10th month in a row to see a year-on-year increase in transactions. The average sale price was 38,180,000 Yen, down 2.3% from the previous month but up 2.9% from last year. The average price per square meter was 647,800 Yen, down 3.3% from the previous month but up 2.3% from last year. The average building age was 18.83 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 200 second-hand apartments were sold, down 13.0% from the previous month but up 17.6% from last year. This is the 5th month in a row to see a year-on-year increase in transactions. This is the highest number of recorded transactions for the month of January since record-keeping began in 2008, and is double the average seen between 2008 and 2012. The number of new listings were also down for the 3rd month in a row, with 1,370 apartments listed for sale in January 2017, down 5.1% from last year.
The average sale price was 52,500,000 Yen, down 9.9% from the previous month but up 0.9% from last year. The average price per square meter was 998,800 Yen, down 4.3% from the previous month and down 0.3% from last year. The average building age was 16.19 years.
Past transactions in central Tokyo’s 3 wards in January:
- 2017: 200
- 2016: 170
- 2015: 124
- 2014: 162
- 2013: 140
- 2012: 100
- 2011: 114
- 2010: 100
- 2009: 88
- 2008: 90
Less than 2% of apartments in Tokyo are over 110 sqm
According to research firm MRC, less than 2% of the apartments built for sale in Tokyo’s 23 wards between 2002 and 2016 were over 110 square meters (1,184 sq ft) in size. Almost 80% of apartments supplied were below 80 sqm (861 sq ft) in size.
The typical size of a 3-Bedroom apartment is around 70 sqm (753 sq ft). Buyers looking for spacious apartments over 100 sqm will find supply incredibly limited. Prices, too, will be comparatively high since apartments over 100 sqm are considered to be luxury-grade and are often only found on upper floors or in high-end buildings.Read more
Demolition underway on Omotesando public housing complex
Demolition of the old Aoyama Kitamachi Apaato housing complex in Omotesando is underway. Asbestos removal from four buildings is currently being carried out. Asbestos sheeting and spray-on insulation was used in some of the buildings’ rooftop waterproofing, plumbing insulation, and chimneys.
The city-owned public housing estate will soon be replaced with high-rise residential, aged care facilities and retail space.
The Tokyo Metropolitan Government has chosen six developers to partake in the project, including Tokyo Tatemono, Mitsui Fudosan, Kajima Corporation and Maeda Corporation.Read more
Mitsubishi enters apartment building renovation and resale market
Mitsubishi Jisho Residence is entering the building renovation and resale market with their first project in Shirokane now on sale. With a severe shortage of apartment development sites, high land prices and construction costs, developers have been turning to their attention to the resale market. Rental apartment buildings are being bought up by major developers, tenants slowly evicted, and the vacant and renovated apartments offered up for sale individually on the resale market.Read more
New luxury apartment building for Omotesando in 2019
Construction has started on a new luxury apartment building in Omotesando. The Minato-ku Minami Aoyama 4 Chome Project is a 7-story residential building located across the street from the Aoyama Cemetery and next-door to Oji Green Hill Apartments.
The developer, Mitsubishi Jisho Residence, recently completed a 7-story condominium called The Parkhouse Gran Minami Aoyama just 300 meters from this current project site. The apartments went on sale in mid-2015 and sold out on the first day of sales with an average of 9.6 buyers for each apartment. Current resale prices in this building range from 2.4 ~ 3.95 million Yen per square meter (approx. 1,980 ~ 3,260 USD/sq ft). It is possible that this new project could see similar pricing.Read more
Potential redevelopment for area near Sengaku-ji Temple
An area just east of Sengaku-ji Temple in Takanawa, Tokyo, has entered the very early stages of discussions for a possible future redevelopment. The area covers 11,000 square meters and currently includes a number of low-rise houses, office and apartment buildings. It also includes Sengaku-ji’s Middle Gate and temple road.
Sumitomo Realty is taking part in planning and preparation. A town planning decision is eyed for 2018 and construction could start by 2020.Read more
Tokyo Apartment Sales in January 2017
The following is a selection of apartments that were sold in central Tokyo during the month of January 2017:Read more