Mizuho Trust & Banking Co. released their Real Estate Market Report for October 2013. According to the data, second-hand apartment sales are making up a growing proportion of total apartment sales in both greater Tokyo and the Kinki region.
In Tokyo’s 23 wards, around 10,000 second-hand apartments have been sold annually since 2010. The highest proportion of sales and the highest transaction volume is in Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Shibuya and Bunkyo).
The number of transactions of family-type apartments was 1,228 units in Jyoto and 826 units in Jyonan. Jyonan had a higher sale price per square meter and the average apartment size was larger than in Jyoto. For this reason, the average apartment sale price in Jyonan was 50.53 million Yen, while it was 32.17 million Yen in the Jyoto area.
While there was a slight difference in the average price per square meter for studio apartments in each area, the difference was less than that seen in family-type and compact-type apartments.
Tokyo’s 6 wards saw the highest number of transactions of studio-type apartments, while family-type apartments were the most popular in Jyoto.
The average size of a family-type apartment in each area is as follows:
- Tokyo 6 wards: 81.7 sqm
- Jyonan: 75.7 sqm
- Jyoto: 70.1 sqm
- Jyosai: 71.8 sqm
- Jyohoku: 70.8 sqm
New vs old apartment sales
Sales of brand new apartments across greater Tokyo dropped sharply from 2006 to 2008, while sales of second-hand apartments have steadily increased since 2003. From 2008 onwards, second-hand apartments have made up approximately 40% of all apartment sales.
The Kinki region (Osaka, Kyoto, Hyogo, Shiga, Nara, Wakayama and Mie) has seen a similar pattern.
About the data:
- Family-type = 60 sqm and over
- Compact-type = 30 ~ 60 sqm
- Studio-type = Less than 30 sqm
- Jyonan= Shinagawa, Meguro, Ota, Setagaya
- Jyoto = Taito, Sumida, Koto, Adachi, Katsushika, Edogawa
- Josai = Nakano, Suginami, Toshima, Nerima
- Johoku = Kita, Arakawa, Itabashi
Source: Mizuho Trust & Banking Co. Real Estate Market Report, October 2013 ()