According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in August was 4.7%, showing no change from the previous month and down 0.6 points from last year. The average gross yield across Tokyo was 6.5%, also showing no change from the previous month and down 0.5 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 868,857 Yen/sqm as of August 1, 2015, up 1.3% from the previous month and up 9.7% from last year. The average asking price for land was 1,234,848 Yen/sqm, up 0.7% from the previous month but down 3.3% from last year.
Building age and gross yield (yield after deducting monthly building fees):
- 1-14 yrs old: 4.63% (4.11%)
- 15-29 yrs old: 5.04% (4.32%)
- 30+ yrs old: 6.20% (5.02%)
Apartments less than 10 years old had an average gross yield of 4.25% (3.77% after deducting building fees).
Average advertised monthly rent for an apartment less than 10 minutes walk from the nearest train station:
- Studio: 129,700 Yen (-2,900 Yen from last month)
- 1-Bedroom: 215,600 Yen (0 Yen)
- 2-Bedroom: 297,600 Yen (-1,700 Yen)
- 3-Bedroom: 335,500 Yen (-12,800 Yen)
Apartments within a 10 minute walk from a train station rent for around 15 ~ 30% more than apartments that are more than 10 minutes from the nearest 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 August 7, 2015).