The average listing price of a pre-owned detached house in Tokyo’s 23 Wards dropped to ¥93,720,000 ($840,500) in March, a 5.6% decrease compared to February and the third consecutive monthly decline. This is according to data recently reported by Tokyo Kantei (in Japanese).
Tokyo 23 Wards
The March data also represents a 6.7% year-on-year decrease in the average price compared to February 2016.
In the Tokyo 23 Wards, the average land area of a pre-owned detached house listed for sale was 132.3-sqm and the average building area was 128.7-sqm. Based on this, the average price would be ¥728,205 per square meter. The average house age was 17.3 years.
Tokyo Plus Western Suburbs
Average prices in Tokyo as a whole (which includes the 23 wards plus the western municipalities), also declined in March, with the average price for all Tokyo reported as ¥59,090,000, a drop of 4.5% compared to February and 8.9% year-on-year.
For Tokyo as a whole, the average land area of a pre-owned detached house listed for sale was 143.6-sqm and the average building area was 117.5-sqm. Based on this, the average price would be ¥502,893 per square meter. The average house age was 17.3 years.
This suggests that homebuyers looking outside the Tokyo 23 Wards are potentially enjoying a price differential of ¥225,312 (44.8%) per square meter, or inversely, this is the premium for living inside the 23 Wards.
First Quarter Trends
Looking at the first three months of the year, we see a year-on-year drop of 2.23% in the average listing price of a house in the 23 Wards compared to 2016. This is a sharp change compared to January to March of 2016 versus 2015, when average prices leaped 21.7%. Still, the first quarter average price remains well above the average price for the first three months of 2015.
For Tokyo as a whole, the first three months of 2017 also saw a drop, albeit a smaller one, of 1.3% in the average listing price of a pre-owned home. This also represented a sharp reversal compared to January to March of 2016 versus 2015, when the average price jumped 16.1%.
Two Year Trends
Looking back two years, the average listing price of a pre-owned detached house in the Tokyo 23 Wards peaked at ¥112,100,000 in September 2015. The 2016 peak was reached in December when average prices hit ¥110,110,000.
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