The average asking price of an apartment in the greater Tokyo area rose again in April - up 0.4% from the previous month and 4.5% from April of 2014. This is the 8th consecutive month prices have been on the rise showing a trend analysts predict will continue for some time. To put it in perspective, the study determined that for an average building age of 21.9 years and unit size of 70 square meters the price would be ¥29,690,000.
In a similar studies in central Tokyo the rise is more prominent. In a similar study using Tokyo’s 23 wards, the average asking price for the same unit was ¥45,630,000 which is up 0.6% from the previous month and 10% from the same time last year. This was the 10th month in a row of prices on the rise which is getting closer to the previous price peak in February 2008. In a study using Tokyo’s 6 wards, the average asking price was ¥64,920,000 which is up 0.4% from the previous month and 13.4% from last year. In Tokyo’s Chiyoda ward, the average asking price was ¥89,720,000, up 1.6% from the previous month and 10.5% from last year.
The main contributing factor for the rising prices in second-hand apartments is thought to be the ever rising cost of brand new apartments, especially in central Tokyo. Prices in central Tokyo are rising much more sharply which is pulling up the average across the region. For example, the average apartment price in Chiba City is down 4.1% from last year.
According to Tokyo Kantei, this trend of property prices on the rise will continue in central Tokyo for some time. Even more pressure on the market continues, as the supply of properties in central Tokyo is low and some sellers, such as property developers, are hanging on to their properties longer in anticipation of rises prices.
¥29,690,000 asking price for a 70m2 second-hand apartment (+0.4% from Mar. 2015; +4.5% from Apr. 2014)
Tokyo 23 ¥45,630,000 asking price for a 70m2 second-hand apartment (+0.6% from Mar. 2015; +10.0% from Apr. 2014)
Central Tokyo 6 Wards ¥64,920,000 asking price for a 70m2 second-hand apartment (+0.4% from Mar. 2015; +13.4% from Apr. 2014)Sources: