Residential yields and vacancy rates in Minato-ku – January 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in January was 5.8%, down 0.2 points from December. The average yield across Tokyo was 7.5%, down 0.1 points from the previous month.

The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 738,929 Yen/sqm as of January 1, up 3.27% from the previous month. The average asking price for land was 839,050 Yen/sqm, down 21.7% from the previous month. 

Building age and gross yield (yield after deducting monthly building fees):

  • 1-14 yrs old: 5.68% (4.99%)
  • 15-29 yrs old: 6.67% (5.64%)
  • 30+ yrs old: 8.18% (6.50%)

Average advertised monthly rent for an apartment less than 10 minutes walk from the nearest train station:

  • Studio: 127,200 Yen (no change from last month)
  • 1-Bedroom: 218,600 Yen (+3,300 Yen)
  • 2-Bedroom: 288,500 Yen (+10,000 Yen)
  • 3-Bedroom: 302,900 Yen (-6,200 Yen)

Notes:

The published yields are based on listings advertised on the Homes site. These listings are mainly investment-type properties, such as small tenanted studios, which typically have a higher yield than larger 2 or 3-bedroom family-type apartments.

The calculations do not include:

  • Rental management fees
  • Annual fixed asset taxes
  • Any income taxes payable
  • Purchase fees
  • Repairs

Source: Homes (Data obtained January 10 2014)

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