New apartment prices in Tokyo up 26%

According to the Real Estate Economic Institute, 2,110 brand new apartments were released for sale in greater Tokyo in August, down 50.0% from the previous month and down 49.1% from last year. This is the 7th month in a row to see a year-on-year drop in supply.

1,469 apartments were sold, making the contract rate 69.6%. This is down 14.1 points from the previous month and down 11.9 points from last year. This is the first time the contract rate has fallen below 70% in 19 months. A contract rate over 70% usually indicates positive market conditions.

The average new apartment price was 56,850,000 Yen, up 2.8% from the previous month and up 18.5% from last year.

The average price per square meter was 775,000 Yen, up 0.5% from the previous month and up 14.5% from last year.

212 apartments in high-rise buildings (over 20-storeys) were offered for sale, down 86.2% from the previous month and down 78.6% from last year. The contract rate was 50.9%, down 42.6 points from the previous month and down 34.3 points from last year.Read more

by Zoe Ward

Secondhand apartment transactions down while prices continue to climb

According to REINS, 2,118 second-hand apartments were sold across greater Tokyo in August, down 16.4% from the previous month and down 5.9% from last year. This is the 5th month in a row to see a decline from one year prior.

The average apartment sale price across greater Tokyo was 28,190,000 Yen, up 7.4% from the previous month and up 10.2% from last year. The average price per square meter was 436,900 Yen, up 6.5% from the previous month and up 9.2% from last year. The average building age was 19.47 years.

1,003 apartments were sold in the Tokyo metropolitan area, down 18.3% from the previous month and down 9.2% from last year. This is the 5th month in a row to see a decline from one year prior. The average apartment sale price was 34,870,000 Yen, up 9.0% from the previous month and up 12.7% from last year. The average price per square meter was 587,500 Yen, up 7.8% from the previous month and up 13.1% from last year. The average building age was 18.26 years.

The average sale price in central Tokyo’s 3 wards (Chiyoda, Chuo and Minato) was 55,820,000 Yen, up 24.2% from the previous month and up 20.8% from last year. The average price per square meter was 920,200 Yen, up 0.8% from the previous month and up 11.7% from last year. The average building age was 15.38 years.

Average sale prices per square meter were up in a number of locations last month:Read more

by Zoe Ward

An updated forecast of Tokyo real estate prices

The Japan Real Estate Institute published an updated forecast of real estate prices and rental values in Tokyo’s 23 wards from 2014 to 2020.

In 2013, apartment prices increased by around 4% due to a last minute buying rush before the hike in the consumption tax kicked in. Note: this tax applies to the sale of brand new apartments and applies to the building portion of the sale only. Anyone who signed a contract on a new apartment before the end of September 2013 could lock in the 5% tax rate.

2014

In 2014, apartment prices are forecast to fall by around 2% from the previous year to 804,000 Yen/sqm. This was attributed a drop in demand due to the increase in the consumption tax rate from April 2014.

Monthly apartment rent increased by 6.4% to 3,430 Yen/sqm.

2015

Read more

by Zoe Ward

Secondhand apartment sales in March - REINS

According to REINS, 3,994 secondhand apartments were sold across greater Tokyo in March, up 20.6% from the previous month and up 4.3% from March 2013. The average sale price was 26,650,000 Yen, down 1.0% from February but up 2.7% from last year.

The average price per square meter was 416,600 Yen, down 200 Yen from February but up 4.9% from last year. The average apartment age was 19.40 years and the average apartment size was 63.96 sqm (688 sqft).

The Tokyo Metropolitan area saw 1,983 apartments sold, up 20.9% from February and up 6.1% from last year. Read more

by Zoe Ward