Compared to most other major Asian cities, Tokyo residential property prices have risen only modestly this year, according to a recent survey by the Japan Real Estate Institute (JREI).
In JREI’s 9th International Real Estate Price and Rent Index survey, fourteen global cities, mostly concentrated in Asia, were ranked based on the percentage growth in office and residential property price and rental. The cities surveyed were Tokyo, Osaka, Seoul, Beijing, Shanghai, Hong Kong, Taipei, Singapore, Kuala Lumpur, Bangkok, Jakarta, Ho Chi Minh, New York, and London. The latest survey covered the period from April to October 2017.
Office: Hong Kong Up 6.5%, Tokyo Up 3.1%
According to the JREI, the market was hottest in Hong Kong, with prices shooting up 6.5% for the period. This was due to robust investment demand from mainland China amidst tight supply. Larger than expected transactions also contributed to the rise in office prices.
Osaka came in second (up 4.8%) and Tokyo ranked fifth (up 3.1%) in office property price appreciation for the period, with growth continuing to be driven by the Bank of Japan’s low interest rate policy.
Please see the charts below for the full ranking:
Residential Condominiums: Hong Kong Up 5.2%, Osaka Up 0.9%
In the residential segment, Hong Kong also ranked first in terms of condominium property price growth (up 5.2%), while Beijing (which ranked first in the previous survey) fell in the ranking to tie with Tokyo (up 0.6% for the period). Osaka came in seventh (up 0.9% for the period).
Residential Rent Growth: Hong Kong Up 3.1%, Tokyo Up 0.9%
In terms of residential rent growth, Hong Kong again led the pack with average residential rent increasing 3.1% for the period, followed by Shanghai (up 2.1%), Ho Chi Minh (up 1.0%) and Tokyo (up 0.9%). Osaka came in ninth (up 0.1%).
You may also be interested in: International comparison of the GDPs of Japanese prefectures
Top Photo: Hong Kong Skyline