Tokyo Market Trends

Buyers Scooped Up Apartments in Greater Tokyo at Record Pace in FY2018: Here’s What They Paid

Buyers bought apartments in the greater Tokyo area at a record pace in FY2018 (April 1, 2018 to March 31, 2019), according to a report recently released by the Real Estate Information Network System (REINS). The greater Tokyo region consists of Tokyo, Chiba, Saitama, and Kanagawa prefectures.

The main factors pushing people to buy in the last year include:

These are the key takeaways from the report:

Re-Sale Apartment Market – Record Number of Sales Contracts

The main takeaway in the re-sale apartment market  is that the number of sales contracts signed (37,601) was the highest every recorded.

  • The number of contracts also increased for the first time in two years.
  • The per-square-meter price of re-sale apartments contracted for sales reached the ¥520,000 level. This was the sixth consecutive year of growth and an increase of 35.4% compared to six years ago. ¥520,000 ($4,646) per sqm is approximately equal to ¥48,309 ($432) per-square-foot.
  • The average contracted sales price for re-sale apartments reached the ¥33,000,000 ($295,000) level for the greater Tokyo region as a whole, the sixth consecutive year of increases.
  • The number of newly registered properties (for sale) increased for the fifth consecutive year to the 200,000 unit level.

Drilling down by region, as can be expected, we see a wide variation in average sales prices in Tokyo and other areas in the greater capital region.

  • Tokyo: ¥41,620,000
  • Tokyo 23 Wards only: ¥45,020,00
  • Tokyo western suburbs only: ¥27,100,000
  • Saitama Prefecture: ¥21,460,000
  • Chiba Prefecture: ¥20,530,000
  • Kanagawa Prefecture:¥28,990,000
  • Yokohama & Kawasaki only: ¥32,190,000
  • Kanagawa other: ¥20,830,000
  • Greater Tokyo Region Average: ¥33,540,000

Please see the following chart for details:

Re-Sale Detached House Market

  • The number of sales contracts in the re-sale detached house market increased for the first time in two years.
  • The average contracted sales price for a re-sale detached house stayed around the ¥31,000,000 ($277,000) level, which was flat compared to the previous fiscal year.
  • Total building area and land area of contracted properties both decreased.
  • The number of newly registered properties (68,768 (for sale) increased for the second year in a row. The number of newly registered properties increased in every area surveyed and increased by double digits in the Tokyo 23 Wards and western suburbs.

Newly Constructed Detached House Market – Record Number of Sales Contracts

  • The number of contracts also increased for the first time in two years.
  • The average contracted sales price of all newly constructed houses fell to the ¥34,000,000 ($304,000) level for the greater Tokyo region as a whole, the second straight year of decreases.
  • The number of newly registered properties (for sale) increased for the third year in a row.

We will publish average sales prices for re-sale detached and newly constructed houses in a follow-up post.

FAQs About Buying a Home 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“.

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

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

What is the process for buying a home in Japan?

Please see our step-by-step guide: Guide to Buying a Home 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

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?

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.

Source: REINS

Lead photo: Azabu Juban shopping street, via Wikimedia Commons