Average Price of a Pre-Owned Apartment in Tokyo Hits a New High

In the first seven months of 2019, the average listing price of a pre-owned apartment in Tokyo hit a new all-time high at ¥50,270,000 ($465,600), a year-on-year increase of 2.5%. This is according to a recent report released by Tokyo Kantei Co. Ltd, a Tokyo-based real estate think tank. The main takeaway from the report is that perceived demand for pre-owned apartments is strong in the greater Tokyo region.

The 2019 first-half listing price average underscores a trend that started in mid-2018. As we discussed in another post, 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), the highest number ever recorded. The average sales price of a pre-owned apartment in FY2018 was ¥33,000,000, the sixth consecutive year of increases.

The main factors pushing people to buy pre-owned apartments in the last year include:

  • Historically low mortgage interest rates
  • Supply continuing to tighten in the most desirable areas and for newly-constructed apartments have driven some buyers into the pre-owned market

Here are the key takeaways from the 2019 mid-year report:

Greater Tokyo Region

  • The average listing price for a pre-owned apartment in the Greater Tokyo Area was ¥37,040,000 ($342,700), a year-on-year increase of 1.8% and a month-on-month increase of 0.5%. The greater Tokyo area consists of the Tokyo 23 Wards, Tokyo western suburbs, Kangawa, Saitama, and Chiba prefectures.
  • Tokyo City as a whole: ¥50,270,000 (+2.5% YoY, +0.5% MoM)
  • Kanagawa Prefecture: ¥28,460,000 (-1.5% YoY, +0.3% MoM)
  • Saitama Prefecture: ¥22,700,000 (-1.1% YoY, +0.2% MoM)
  • Chiba Prefecture: ¥20,600,000 (+2.7% YoY, No Change MoM)

Other Regions

Average listing prices have also been on a growth trajectory in other major metro regions throughout the country.

  • Kinki Region (including Osaka, Hyogo, and Kyoto prefectures): ¥23,670,000 (+7.3%, +0.5% MoM)
  • Osaka prefecture: ¥25,580,000 (+6.1% YoY, +0.2% MoM)
  • Hyogo prefecture (which includes Kobe): ¥20,840,000 (+10.6% YoY, -0.4% MoM)
  • Chubu Region (including  Aichi, Fukui, Gifu, Ishikawa, Nagano, Niigata, Shizuoka, Toyama, and Yamanashi prefectures): ¥19,480,000 (+7.0% YoY, 0.5% MoM)
  • Aichi Prefecture (including Nagoya): ¥21,010,000 (+7.7% YoY, +0.3% MoM)

By Major City

This is the breakdown by major city:

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Lead photo: Apartment for sale in Harajuku, Shibuya Ward, Tokyo