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)
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:
- Tokyo 23 Wards: ¥56,370,000 (+4.3% YoY, +1.1% MoM)
- Yokohama: ¥30,830,000 (+0.1% YoY, +0.8% MoM)
- Saitama City: ¥27,060,000 (-1.8% YoY, +0.5% MoM)
- Chiba City: ¥19,060,000 (+6.1% YoY, +1.0% MoM)
- Osaka City: ¥33,030,000 (+8.2%,0.8% MoM)
- Kobe City: ¥21,280,000 (+13.4% YoY, -0.7% MoM)
- Nagoya City: ¥24,270,000 (+5.2% YoY, +0.5%)
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“.
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Lead photo: Apartment for sale in Harajuku, Shibuya Ward, Tokyo