Average Prices of Previously Owned Apartments in Tokyo Up for 15 Consecutive Months

Prices of previously owned apartments in Tokyo continued to climb in the last quarter (July to September), continuing a hot streak that has seen average listing prices rise for 15 consecutive months. The city of Tokyo (東京都) includes the Tokyo 23 Wards and the western Tokyo suburbs.

Sales of newly built and previously owned homes and condominiums in Tokyo have put in a steady recovery since the start of the pandemic last March.

The average listing price of a pre-owned condominium in the city of Tokyo rose 13.1% year-on-year to reach ¥58,270,000 ($513,000 USD) in September, representing 15 consecutive months of increases. This is according to Tokyo Kantei’s October nationwide pre-owned apartment market report.

September was also the fifth month in a row that listing prices in the greater Tokyo area have put in an increase, reaching ¥43,050,000. The “greater Tokyo area” includes the city Tokyo plus the prefectures of Chiba, Saitama, and Kanagawa.

Throughout 2020, developers nationwide were cautious about releasing new supply to the market amidst the pandemic a slowdown in business activity. This occurred amidst a longer term downward supply trend driven by high labor and material costs and competition with hotel developers for city-center land.

On the buyer side, extremely tight new apartment supply has been a factor in driving sales of pre-owned apartments and homes, as some buyers are forced to look in this segment of the market where there is greater supply and lower price points.

These are the key takeaways from the July to September 2021 data:

  • The average listing price for the Tokyo 23 Wards hit ¥64,350,000 ($567,000 USD), up 10.4% year-on-year.
  • The rate of growth in prices in the Central 6 Wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya) slowed in September, with prices dropping -0.7% versus August, but the average listing price was still up 7.7% to ¥92,390,000 ($814,000 USD).
  • The Tokyo Central 6 Wards and Yokohama were both outliers, as listing prices all other areas surveyed in the greater Tokyo area were up in September versus the previous month. Average listing prices fell slight in September in Yokohama by -0.4% versus August, to ¥34,920,000 ($308,000 USD).

Breakdown by prefecture

Breakdown by Major City

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Lead photo: Drone aerial view of Shibuya Scramble via iStock 1068888080