How much does an apartment cost in Tokyo – March 2022 Update

March 30, 2022

The average sales price of a newly constructed apartment in the greater Tokyo region was ¥74,180,000 ($604,000 USD) in February. This was a year-on-year increase of 16.3% and up 20.5% compared to January.

The average sales price per square meter was ¥1,095,000 ($8,908 USD), up 15.5% year-on-year and the second consecutive month of year-on-year increases.

The big picture story for the February report is that although prices have continued to rise, the contract rate suggests that consumers are in a buying mood. The contract rate is the number of units contracted for sale divided by the number of units offered for sale. The February contract rate for greater Tokyo was 73.3%. This was the first time in two months that the rate exceeded the 70% mark, which is considered the dividing line between a seller’s and buyer’s market.

The REERI report covers the greater Tokyo region. This includes the Tokyo 23 Wards, the Tokyo western suburbs, and the prefectures of Kanagawa, Saitama, and Chiba.

Another notable datapoint from the February numbers was the strength of the Tokyo 23 Ward market. In February, the average sales price in the Tokyo 23 Wards was ¥96,850,000 ($788,000 USD), up 30.3% year-on-year and also up 29.4% compared to January. To put this price point into perspective, the 2021 average sales price of a newly constructed condominium sold in the Tokyo 23 Wards was ¥82,930,000 ($729,000 USD), which was the first time in 30 years that the price had exceeded the 80 million yen mark.

Start of the spring sales season

February represents the start of the spring sales seasons for condominium developers, so last month’s strong sales performance is a hopeful sign that the remainder of the year will continue to see strong consumer demand.

On the demand side, many potential buyers are people looking to buy their own homes in order to take advantage of Japan’s record-low mortgage rates and the increasing acceptance of working-from-home. However, as land prices and labor costs are continuing to rise, the price of new developments will continue to rise. As the Bank of Japan has stated that it plans to continue monetary easing, the prospect of rate increases in Japan remain low.

What does the supply side look like? Last month, developers released new inventory at a cautious pace (supply of new units in greater Tokyo increased in February by 2% year-on-year, for a total of 2,287 units). The forecast number of new units for March is about 3,500 units, which would be a 12.8% year-on-year increase. It remains to be seen whether consumer demand will continue to hold.

In February, high-end condominiums in central Tokyo and Kachidoki (in the Tokyo Bay Area) and suburban properties near major train hubs were popular with buyers.

Continuing the trend from last year, properties in Chiba were also very popular. Last month, developers released 301 new units for sale in Chiba, with a resulting contract rate of 83.1%. This was a huge jump of 25.4 points compared to last February and the highest contract rate of any of the sub-regions in greater Tokyo. The average sales price in Chiba was also up, hitting ¥57,340,000 ($467,000 USD), a year-on-year increase of 26.4%).

Average Sales Price of an Apartment in Tokyo – By City & Prefecture

Here is the breakdown of average sales prices by area for February 2022 compared to January 2022 and year-on-year.

Source: Real Estate Economic Research Institute (不動産経済研究所)

Average Sales Price Per Square Meter of an Apartment in Tokyo – By City & Prefecture

Here is the breakdown of average sales prices per square meter by area for February 2022 compared to January 2022 and year-on-year.

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

For information about purchase and brokerage fees: Breakdown of real estate purchase fees and taxes in Japan

Need to Know

Leasehold rights in Japan: Advantages and disadvantages

Earthquake building codes and technology in Japan

Can I legally rent out my home in Japan on AirBnB?

Repair reserve fund fees explained

Parking spaces in Japanese condominium buildings explained

Building your own home in Japan

7 reasons why foreigners are interested in buy a home in Japan, especially now – March 2022 Update

Bilingual Real Estate Agent in Tokyo Answers Your FAQs on Buying and Managing an Investment Property

How much is my property worth?

Real Estate Japan is pleased to offer free, no obligation appraisals for owners of property in Japan. Please click here and fill out the form: How much is my property worth?

7 situations when you should consider selling your investment property in Japan

What are the main factors affecting home sale prices in Japan in 2019?

Akiya Banks in Japan

Tokyo Apartment Market Forecast: Trends to watch for in 2022

Kansai Apartment Market Forecast: Supply and price trends to watch for in 2022

Sources:

REEI, February 2022 Tokyo New Condominium Market Trends Report (PDF in Japanese)

REEI, January 2022 Tokyo New Condominium Market Trends Report (PDF in Japanese)

REEI, February 2021 Tokyo New Condominium Market Trends Report (PDF in Japanese)

Lead photo: Tokyo SkyTree and cherry blossoms via iStock 1283529752

Please enable Javascript to send comment

Real Estate Japan

Blog