Average prices of previously owned apartments in Tokyo up for 12 consecutive months

Home buyers in greater Tokyo have continued to vote with their wallet in the year or so since the capital entered the first COVID state-of-emergency, as home prices in the capital region have persisted in climbing month-on-month and year-on-year.

The average listing price of a pre-owned condominium in the greater Tokyo area rose 12.2% year-on-year to reach ¥41,140,000 ($375,000 USD) in June, eclipsing the previous record just set in May of ¥40,440,000. This is according to Tokyo Kantei’s July nationwide pre-owned apartment market report.

The greater Tokyo region includes the city of Tokyo and the prefectures of Chiba, Saitama, and Kanagawa.

June was also the 12th consecutive month in which the average listing price of a previously owned apartment in the city of Tokyo has increased versus the previous month, reaching ¥57,110,000 (+0.7% versus May). The June number also represented a 12.6% YoY increase, underscoring the demand for homes in the city center.

Throughout 2020, developers nationwide were cautious about releasing new supply to the market amidst the pandemic a slowdown in business activity. This has exacerbated a longer term downward supply trend driven by high labor and material costs and competition with hotel developers for city-center land.

On the buyer side, extremely tight new apartment supply has been a factor in driving sales of pre-owned apartments and homes, as some buyers are forced to look in this segment of the market where there is greater supply and lower price points.

These are the key takeaways from the June data:

  • The average listing price for the Tokyo 23 Wards hit ¥63,290,000 ($577,000 USD), for 12 consecutive months of month-on-month increases.
  • The Tokyo 23 Wards has had two consecutive months of double digit percentage increases v. the previous month (10.8% in May and 11.7% in June)
  • The Central 6 Wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya) maintained a strong upward trend in June, reaching an average listing price of ¥91,640,000 (+10.5% YoY and 0.5% v. May).

Breakdown by prefecture

Average Listing Price of a Resale 70-sqm Apartment in the Greater Tokyo Area – June 2021
By Prefecture, Source: Tokyo Kantei
Average Listing Price in JPY Vs. YoY Vs. Previous Month
Greater Tokyo Area 41,140,000 12.2% 1.7%
Tokyo 57,110,000 12.6% 0.7%
Kanagawa 30,960,000 7.9% 2.8%
Saitama 24,650,000 8.2% 1.1%
Chiba 22,910,000 9.5% 2.0%

Breakdown by major city

Average Listing Price of a Resale 70-sqm Apartment in the Greater Tokyo Area – June 2021
By Major City, Source: Tokyo Kantei
Average Listing Price in JPY Vs. YoY Vs. Previous Month
Tokyo 23 Wards 63,290,000 11.7% 0.4%
Tokyo Central 6 Wards 91,640,000 10.5% 0.5%
Yokohama 34,240,000 9.8% 3.5%
Saitama City 29,790,000 9.0% -0.6%
Chiba City 20,690,000 5.6% 1.3%
Tokyo Central 6 Wards: Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, Shibuya

FAQs About Buying Property in Japan

Can a foreigner buy property in Japan?

Yes. You can buy property in Japan regardless of your nationality or country of origin. There are also no residency requirements for buying real estate in Japan. Securing financing as a resident foreigner is more complicated. For info on financing, please see Basic Requirements for Getting a Mortgage as a Foreigner in Japan

Seminars on Buying Property in Japan

Please see our seminar page for a current list of seminars on: how to buy a home in Japaninvesting in Japanese real estate for beginnershow to apply for permanent residency in Japanhow to sell property in Japan, and much more.

How do I get a property loan as a foreigner in Japan?

Please see this article for information on: Getting a property loan as a foreigner in Japan

What is the process for buying a property in Japan?

Please see our step-by-step guide: Guide to Buying Property in Japan

See how much you can borrow and your monthly payments in yen: Yen Mortgage Loan Calculator

For information about purchase and brokerage fees: Breakdown of real estate purchase fees and taxes in Japan

Need to know: Earthquake building codes and technology in Japan

Bilingual Real Estate Agent in Tokyo Answers Your FAQs on Buying and Managing an Investment Property

How much is my property worth?

Real Estate Japan is pleased to offer free, no obligation appraisals for owners of property in Japan. Please click here and fill out the form: How much is my property worth?

7 situations when you should consider selling your investment property in Japan

What are the main factors affecting home sale prices in Japan in 2019?

2021 homebuyer incentives in Japan

Homeowners in Japan can expect lower property taxes in 2021

Tokyo Apartment Market Forecast: Trends to watch for in 2021

Kansai Apartment Market Forecast: Supply and price trends to watch for in 2021

Source: Tokyo Kantei Pre-Owned Apartment Market Report, July 2021 (Japanese PDF)

Lead photo: Tokyo cityscape, iStock 695445424