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

Tokyo and Minato apartment Yield July 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in July was 5.2%, down 0.1 points from last month and down 0.8 points from July 2013. The average gross yield across Tokyo was 7.1%, down 0.1 points from last month and down 0.9 points from last year.

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 785,957 Yen as of July 1, down 0.86% from June. The price growth seen in 2013 appears to have stalled and asking prices have started to decline slightly. The average asking price for land was 1,250,303 Yen/sqm, up 5.9% from last month.

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

  • 1-14 yrs old: 5.16% (4.58%)
  • 15-29 yrs old: 5.53% (4.68%)
  • 30+ yrs old: 8.15% (6.37%)

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

  • Studio: 132,200 Yen (+2,000 yen from last month)
  • 1-Bedroom: 216,400 Yen (+1,600 Yen)
  • 2-Bedroom: 290,400 Yen (+4,200 Yen)
  • 3-Bedroom: 313,700 Yen (-5,000 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 July 9, 2014).

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