In December 2019, the average listing price of a pre-owned apartment in the greater Tokyo region hit a new all-time high of ¥37,440,000 ($344,000), a year-on-year increase of 0.4% and up 1.3% compared to November. This price point also surpassed the 2019 high reached in May, of ¥37,400,000). The greater Tokyo region includes the city of Tokyo and the prefectures of Chiba, Saitama, and Kanagawa. As we reported in a recent post, the average price of a new apartment sold in the greater Tokyo area hit a 29-year high of ¥59,800,000 ($545,000) in 2019.
Driving Factors
The two trends are linked, as many buyers being pushed out of the new apartment market by increasingly high prices are finding alternative properties in the re-sale market. Another important factor is that consumption tax (which was raised to 10% from 8% in October last year) is not charged on the sale of a pre-owned residential property by a private individual (consumption is applicable when the seller is a corporation). A third underlying factor is, of course, the BOJ’s massive monetary easing, which has helped to suppress mortgage interest rates.
As we discussed in the 2019 mid-year update on the re-sale apartment market, buyers bought apartments in the greater Tokyo area at a record pace in FY2018 (April 1, 2018 to March 31, 2019). In FY2018, the number or sales contracts signed (37,601), was the highest number ever recorded.
Here are the key takeaways from the December 2019 report:
Greater Tokyo Region
- The average listing price for a pre-owned apartment in the Greater Tokyo Area was ¥37,440,000, a year-on-year increase of 0.4% and a month-on-month increase of 1.3%.
- Tokyo City as a whole: ¥50,350,000 (+1.9% YoY, +0.6% MoM)
- Kanagawa Prefecture: ¥28,760,000 (-1.9% YoY, +0.8% MoM)
- Saitama Prefecture: ¥22,400,000 (-3.2% YoY, -0.8% MoM)
- Chiba Prefecture: ¥20,062,000 (+0.9% YoY, -0.5% MoM)
By Major City
This is the breakdown by major city around Japan:
- Tokyo 23 Wards: ¥56,350,000 (+3.2% YoY, +0.5% MoM)
- Yokohama: ¥31,400,000 (+0.9% YoY, +1.4% MoM)
- Saitama City: ¥27,100,000 (-1.8% YoY, +1.3% MoM)
- Chiba City: ¥19,270,000 (+4.5% YoY, +0.5% MoM)
- Osaka City: ¥34,560,000 (+9.1%,+4.6% MoM)
- Kobe City: ¥21,920,000 (+13.9% YoY, +0.6% MoM)
- Nagoya City: ¥23,990,000 (+1.1% YoY, +0.6%)
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“.
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 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
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Bilingual Real Estate Agent in Tokyo Answers Your FAQs on Buying and Managing an Investment Property
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Seminars on Buying Property in Japan
Please see our seminar page for a current list of seminars on: how to buy a home in Japan, investing in Japanese real estate for beginners, how to apply for permanent residency in Japan, how to sell property in Japan, and much more.
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