According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in July was 4.7%, showing no change from the previous month and down 0.5 points from last year. The average gross yield across Tokyo was 6.5%, down 0.2 points from the previous month and down 0.6 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 857,785 Yen/sqm as of July 1, 2015, up 85 Yen from the previous month and up 9.1% from last year. The average asking price for land was 1,226,363 Yen/sqm, up 1.1% from the previous month but down 1.9% from last year.
Building age and gross yield (yield after deducting monthly building fees):
- 1-14 yrs old: 4.72% (4.22%)
- 15-29 yrs old: 5.36% (4.56%)
- 30+ yrs old: 5.53% (4.49%)
Apartments less than 10 years old had an average gross yield of 4.29% (3.84% after deducting building fees).
Average advertised monthly rent for an apartment less than 10 minutes walk from the nearest train station:
- Studio: 132,600 Yen (+2,300 Yen from last month)
- 1-Bedroom: 215,600 Yen (+900 Yen)
- 2-Bedroom: 299,300 Yen (+2,600 Yen)
- 3-Bedroom: 348,300 Yen (+27,400 Yen)
Apartments within a 10 minute walk from a train station rent for around 15 ~ 20% higher than apartments that are more than 10 minute from the nearest train station.
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
- Purchase fees
Source: Homes (Data obtained July 7, 2015).