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Market Trends

Average Price of Second-Hand Houses in Tokyo 23-Wards Leaps to 112 Million Yen

In September, the average price of a detached second-hand house in Tokyo’s 23 wards spiked sharply to 112,110,000yen (about 935,000usd), an increase of 22.9% compared to August and 31.9% year-on-year. This price is about triple the average price of a second-hand detached house in Tokyo’s suburbs.

This tops the 100 million yen mark reached in July, which was previously the highest level since December 2014, according to data provided by Tokyo Kantei.

September’s big increase was a turnaround from August, when the average price had decreased 8.8% on a monthly basis. Please see this post for the August report on the average price of a second-hand house in Tokyo.

Tokyo Kantei reports that the average was pulled up by especially high prices in Minato-ku, with one property selling in the 400,000,000 yen (about 3.3 million usd) range.

The survey covered wooden-construction, detached houses that are more than 100sqm (about 1,076 square feet) and less than 300sqm in size.

In Tokyo’s 23 wards, the average land area for a detached, second-hand house in September was 147.2 square meters (about 1,582 square feet); the average floor area was 141.8 square meters, and the average age of re-sale houses sold was 21.6 years.

Tokyo Suburbs

In the suburbs of Tokyo, in September, the average price of a house was 37,150,000yen, a decrease of 6.0% compared to August and also a decrease of 3.4% versus September 2014.

In Tokyo City, but outside the 23 wards, the price of a second-hand detached house increased to 66,960,000yen, up 15.9% compared to August and up 13.5% versus September 2014.

Average Prices in Tokyo Capital Region Down

In contrast to the 23-Wards, average prices for second-hand detached houses in most markets in the Tokyo capital region fell in September. The average prices for the region were as follows:

  • Yokohama City: 38,200,000yen (-0.3% monthly and -2.9% year-on-year)
  • Kawasaki City: 40,630,000yen (-6.2% monthly and -13.5% year-on-year)
  • Sagamihara City: 20,880,000yen (-22.5% monthly and 28.3% year-on-year)
  • Chiba City: 23,950,000yen (+1.4% monthly and +1.4% year-on-year)
  • Saitama City: 29,620,000yen (-12.8% monthly and -7.0% year-on-year)

Osaka and Kyoto Down, in contrast to August

In the Kinki region (which includes Osaka, Kobe and Kyoto) performance was mixed. The average prices for the major markets in the region were as follows:

  • Osaka City: 37,610,000yen (-3.4% monthly and +0.4% year-on-year)
  • Sakai City: 29,340,000yen (+15.6% monthly and 5.6% year-on-year)
  • Kobe City: 28,940,000yen (-1.4% monthly and +12.9% year-on-year)
  • Kyoto City: 34,380,000yen (-10.6% monthly and -6.7% year-on-year)

Nagoya and Fukuoka Up

Year-on-year average price increases in Nagoya and Fukuoka are a partial reflection of the increased interest by domestic and international investors who are chasing higher yields outside of Tokyo. Read more about why investor interest is growing in Japan’s regional markets.

  • Nagoya: Average price 34,720,000yen (+11.1% monthly and 6.1% year-on-year). Land and real estate prices, in general, have been on an uptrend in Nagoya as the city is seeing a building boom around the city center related to the construction of the maglev (magnetic levitation) station that is slated for completion in 2027. The maglev will shorten travel time between Tokyo and Nagoya to about 40 minutes.
  • Fukuoka: Average price 30,970,000yen (-6.7% monthly and 11.2% year-on-year)

Source: Tokyo Kantei, October 8, 2015 press release (Japanese)

Photo: Yamamoto-tei Shibamata Katsushika-ku Tokyo, Japan


2 thoughts on "Average Price of Second-Hand Houses in Tokyo 23-Wards Leaps to 112 Million Yen"

Myloview

crazy

https://myloview.com/theme/japan

Jackson Clark

What does 11.1% monthly and 6.1% year-on-year actually mean?
The property tax rate is 1.4% nationally, and .3% in Nagoya… so what are those percentages reflecting?

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