Market Trends

Sales Price Per Sqm of Central Tokyo Apartments Hits 7 Year High

In October, the price per square meter of condominiums sold in Tokyo’s three central wards (Chiyoda, Chuo, and Minato) reached a seven-year high of 1,039,800 yen ($8,455) per sqm, according to REINS.

Buyer demand for condos in central Tokyo has remained strong, as this price is a 51.6% increase over the post-Lehman trough of 690,300 yen/sqm reached in November 2012 and is the 30th consecutive month (since May 2013) of year-on-year increases in the per sqm sales price.

The average sales price of a condo sold in Tokyo’s three central wards in October was 57,220,000 yen ($465,279). This was the highest average sales price since the December 2014 price of 57,310,000 yen.

The average floor size of a condo sold in Tokyo’s three central wards was 55.03 square meters (about 592 square feet). Last month, there were 179 condo units sold in the three central wards, a year-on-year increase of 14.7%.

Tokyo 3 Central Wards Resale Condo Price Oct 2015

Greater Tokyo

In Greater Tokyo (which includes Chiba, Saitama and Kanagawa prefectures), the sales price of an apartment was 29,480,000 yen, a 4.8% year-on-year increase but down 0.4% compared to September.

The average price per square meter was 458,000 yen, a year-on-year increase of 5.2% but a decrease of 1.0% versus September. Last month 2,877 re-sale condos were sold throughout greater Tokyo, which was both a year-on-year (+8.4%) and monthly increase (+3.8% versus September).

The average building age was 20.32 years.

Tokyo Metro Area

In the Tokyo metropolitan area (which includes the 23 wards and surrounding cities), the average sales price was 36,860,000 yen, which was an increase on both a year-on-year (+6.0%) and monthly basis (+2.2%).

The average price per square meter was 619,100 yen, up 1.1% versus September and up 5.9% on a year-on-year basis. There were 1,415 resale apartments sold in the Tokyo metro area, up 1.9% from the previous month and up 8.9% on a year-on-year basis.

The average building age was 19.30 years.

A key takeaway from this data is that October was the 37th consecutive month to see a year-on-year increase in the sale price per square meter.

Tokyo Metro Resale Condo Price Oct 2015

Source: REINS

Photo: A condominium in Minato ward, Tokyo

Photo Credit: Tower House