According to the Real Estate Economic Institute, the median price of a brand new apartment in greater Tokyo between January and September 2016 was 50,800,000 Yen, up 5.9% from 2015 and up 37.7% from 10 years ago.
The median price for the Kinki region (Osaka, Hyogo, Kyoto, Shiga, Nara and Wakayama) was 37,300,000 Yen, up 3.1% from 2015 and up 18.4% from 10 years ago. In Osaka city, the median price was 33,100,000 Yen, down 3.5% from 2015. Kyoto city, meanwhile, recorded a 12.8% increase in the median price of new apartments over the past year. Prices are now up 69% from 2005.
Supply at record low
Although prices have been steadily increasing, the supply of new apartments has reached a record low in both the Tokyo and Kinki regions.
In the first 9 months of 2016, 23,161 new apartments were released for sale in the greater Tokyo area, down 42.7% from 2015. Between 2000 and 2005, as many as 85,000 ~ 95,000 new apartments were released for sale annually. In recent years, annual supply has shrunk by almost half. In Tokyo’s 23 wards, the supply for the first nine months of 2016 is less than a third of annual supply seen between 2000 and 2005.
Apartment sizes shrinking
The median apartment size offered by developers over the past 16 years has also been shrinking. In 2000, the median size of a brand new apartment in greater Tokyo was 74.93 sqm. In 2016 it was 70.96 sqm – the smallest size seen since record-keeping began.
Median sizes in the Kinki region are also shrinking, with a median size of 70.24 sqm in 2016 – the smallest on record and down from a high of 77.87 sqm in 2004.
Tokyo’s 23 wards
In Tokyo’s 23 wards, the median apartment price in 2016 was 60,480,000 Yen, up 2.2% from 2015 and up 50% from the low of 40,300,000 Yen in 2003.
The median apartment size in Tokyo’s 23 wards was 69.64 sqm, the lowest seen since 2012, but still above median levels seen between 2009 ~ 2012.
Source: The Real Estate Economic Institute, November 10, 2016.