Secondhand apartment prices in December 2014 – Tokyo Kantei

For the first time in three years, the average asking price of a secondhand apartment in greater Tokyo has increased from the previous year. According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in greater Tokyo in 2014 was 28,510,000 Yen, up 2.1% from 2013. In Tokyo’s 23-ku, the average price in 2014 was 42,030,000 Yen, up 5.2% from 2013. It is now 6.3% below the peak seen during the last mini-bubble in 2008.

Prices in December

The average asking price in Tokyo’s 23 wards was 43,790,000 Yen in December, up 1.1% from the previous month and up 7.7% from December 2013. The average building age was 22.2 years.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 61,970,000 Yen, up 1.1% from the previous month and up 12.8% from the previous year. The average building age was 21.4 years.

The average price across greater Tokyo was 29,870,000 Yen in December, up 0.5% from the previous month and up 2.3% from the previous year.

Growing market for secondhand apartments, but concerns linger

New secondhand apartment sales Tokyo 2003 2013

Despite the preference that Japanese have for all things new, secondhand apartments are growing in popularity and more and more developers are getting involved in renovations and apartment flipping.

According to REINS, 36,432 secondhand apartments were sold in greater Tokyo in 2013, up 16% from the previous year. Over the same period, 44,886 new apartments were sold, up 29% from 2012.

There are three main reasons for the recent growth in the secondhand apartment market: 

Secondhand apartment prices in October – Tokyo Kantei

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 40,660,000 Yen in October, up 0.6% from the previous month and up 3.3% from last year. This is the seventh month in a row where prices have seen a month-on-month increase.

In Tokyo’s central 6 wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average asking price was 54,580,000 Yen, up 1.0% from the previous month and up 7.0% from last year. The average apartment age was 21.0 years.

MLIT White Paper on home ownership

On July 2, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released their 2012 White Paper. The theme of the report explored the living situations and demographics of Japan’s younger generation.

Home Ownership

Home ownership rates in Japan shrunk between 1983 and 1998, but began to pick up in 2008. The average rate across all age groups is around 60%.

Temporary upswing in real estate market in Sendai

The 2011 rosenka land valuations released by the National Tax Agency on July 1st showed a decline in land prices across Japan for the third continuous year. Concern is rising, however, over a large scale crash in prices in areas of Northern Japan that were affected by the Tsunami and Fukushima Daiichi Nuclear Power Plant where real estate transactions have almost ceased.

Sendai City, on the other hand, is experiencing a hike in emergency demand from displaced residents.

Second-hand apartment prices in Tokyo continue to increase

According to Tokyo real estate service provider, Tokyo Kantei, the average price of a 70 sqm second-hand apartment in Tokyo’s 23 Wards in May, 2010, was 43.05 million Yen. This is an increase of 9.5% from June of 2009. Prices in Saitama and Chiba Prefectures also saw increases, while Yokohama had a slight fall in prices.

In recent years, Tokyo has seen the supply of brand new apartments fall, and the focus shifted towards pre-existing units. With a decline in home-loan interest rates and and increase in certain tax exemptions on gift taxes, buyers have started returning to the market.

In the past, there was a clear difference in the market for brand new and second-hand apartments. But recently, there are more and more buyers who are comparing both brand new and second-hand apartments for purchase.

Nikkei Shimbun, July 16, 2010

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