A 70sqm apartment in central Tokyo now costs over 100 million Yen
The average asking price of a 70 sqm (753 sq.ft) second-hand apartment in Tokyo’s central wards of Chiyoda, Minato, and Shibuya, has exceeded the 100 million Yen range in November, 2022.
Our Japan Property Market Report for 2022
2022 was a year of turmoil for markets, with interest rate rises, high inflation, and ongoing supply chain disruptions. Japan did not suffer to the same extent, with interest rates and inflation remaining low. The stable domestic conditions favored the real estate market with prices continuing to rise throughout the year.
Please feel free to view or download the PDF of our annual Japan Property Market Report, linked below.
Apartment prices in central Tokyo hit new high in November
Apartment prices in central Tokyo hit a new record high in November, with REINS reporting the average reported sale price of a second-hand apartment in the central three wards at 1,627,200 Yen/sqm. This is a 3.3% increase from the previous month and an 18.2% increase from last year. It’s the highest price-per-square-meter on recent record.
Expected rental yields on Tokyo real estate assets hit 23-year low
Investors are expecting lower rental yields from office and residential assets in Tokyo. According to the Japan Real Estate Institute’s investors survey published on November 2022, the expected rental yield on Class A office space in Tokyo’s Marunouchi and Otemachi district was 3.2% as of October 2022, down from a 3.3% expected yield in April.
Office buildings see improved earnings rate in 2022
On November 29, the Japan Real Estate Institute released its six-monthly report on the total earnings rate (rental income and capital gains) of office buildings in central Tokyo.
Tokyo’s newest and most expensive apartments
Although it is still decades behind, Tokyo’s luxury* property market is finally starting to catch up with its international counterparts. Several new projects in the city center have lifted the bar for pricing and design.
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Japan's property price index illustrates recent growth in house and land prices
On November 30, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released the nationwide property price index for the month of August 2022. What is interesting to note is the recent growth in residential land and detached house prices. Both segments had remained somewhat flat for around 10 years, but have seen a surge in price appreciation since mid-2020.
Land prices increase in over 80% of locations
According to the latest quarterly LOOK Report issued by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), land prices at 81.3% of the surveyed locations saw an increase in the third quarter of 2022. This is the highest share seen since the fourth quarter of 2019.
Panasonic buys back Shiodome office tower
Panasonic Holdings is buying back its office tower in Shiodome. In 2013, the beneficiary rights to the rental income from the building were sold to two funds for 50.7 billion Yen, after the company reported a record loss of 772.1 billion Yen in 2012.
Tokyo Apartment Sales in November 2022
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of November 2022: