What is the Average Sales Price for a Tokyo Apartment in 2019? And Are Prices Up Compared to 2018?

The 2019 average sales price for a new apartment in the greater Tokyo area is ¥60,980,000 ($557,000) and average sales prices for January to April have increased about 3.9% across greater Tokyo, compared to 2018 annual average prices.

Another key takeaway from the 2019 sales results thus far is that the average sales price per sqm increased for three consecutive months (January to March) before dropping in April to ¥931,000 ($8,497).

The analysis below is based on a report recently released by the Real Estate Economic Institute, a Tokyo-based think tank.

The greater Tokyo region consists of the Tokyo 23 Wards, Tokyo western suburbs, and Kanagawa, Saitama, and Chiba Prefectures.

What is the average sales price for a new apartment in Greater Tokyo?

The January to April 2019  average sales price for a new apartment in the Greater Tokyo region is ¥60,980,000 ($557,000).

The ¥60,980,000 is a weighted average that reflects the fact that averages sales prices are significantly higher in the Tokyo 23 Wards than elsewhere in the greater Tokyo region. Below is a breakdown by area:

Average Sales Price of an Apartment in Greater Tokyo – By Area

[January to April 2019 Average]

  • Tokyo 23 Wards: ¥75,142,500
  • Tokyo western suburbs: ¥55,075,000
  • Kanagawa Prefecture: ¥52,567,500
  • Saitama Prefecture: ¥48,447,500
  • Chiba Prefecture: ¥43,480,000

[April 2019 Average]

  • Tokyo 23 Wards: ¥68,560,000
  • Tokyo western suburbs: ¥53,850,000
  • Kanagawa Prefecture: ¥49,270,000
  • Saitama Prefecture: ¥47,020,000
  • Chiba Prefecture: ¥41,620,000
  • Greater Tokyo weighted average: ¥58,950,000

One obvious takeaway from the April data is that April average sales prices dropped compared to the first three months of the year.

Please see the chart below for a detailed breakdown by area:

What is the average sales price per sqm for a new apartment in Greater Tokyo?

The January to April 2019  average sales price per sqm (square meter) for a new apartment in the Greater Tokyo region is ¥900,500 ($8,220). This works out to about ¥83,658 ($761) per square foot.

As with average sales prices, the average per-sqm price is a weighted average that reflects the fact that averages sales prices are significantly higher in the Tokyo 23 Wards than elsewhere in the greater Tokyo region. Below is a breakdown by area:

Average Sales Price Per Sqm of an Apartment in Greater Tokyo – By Area

[January to April 2019 Average]

  • Tokyo 23 Wards: ¥1,177250
  • Tokyo western suburbs: ¥784,500
  • Kanagawa Prefecture: ¥761,250
  • Saitama Prefecture: ¥680,500
  • Chiba Prefecture: ¥594,750

As mentioned in the intro, a key takeaway from the 2019 results thus far is that the average sales price per sqm has increased for four consecutive months. For a breakdown by region, please see the chart below.

Are average sales price up compared to 2019?

Except for Saitama Prefecture, averages sales prices in April increased across the board in the greater Tokyo region on a year-on-year basis. Here is the breakdown.

Average Change in Sales Price for an Apartment in Greater Tokyo – By Area – April 2019 v. April 2018

  • Tokyo 23 Wards: +1.4%
  • Tokyo western suburbs: +1.5%
  • Kanagawa Prefecture: +1.8%
  • Saitama Prefecture: -3.5%
  • Chiba Prefecture: +4.2%
  • Greater Tokyo weighted average: +6.3%

Average sales prices for January to April 2019 were also up in every area, except for Kanagawa Prefecture, when compared with annual average sales prices for 2018.

Average Change in Sales Price for an Apartment in Greater Tokyo – By Area – 2019 Thus Far v. 2018 Annual Average

  • Tokyo 23 Wards: +5.2%
  • Tokyo western suburbs: +5.2%
  • Kanagawa Prefecture: -3.7%
  • Saitama Prefecture: +12.%
  • Chiba Prefecture: 1.0%
  • Greater Tokyo weighted average: 3.9%

Are average sales prices per sqm up compared to 2019?

The change in average sales prices per sqm for January to April 2019 was also up in every area, except for Kanagawa Prefecture, when compared with annual average sales prices for 2018. Here is a breakdown by area.

  • Tokyo 23 Wards: +5.7%
  • Tokyo western suburbs: +5.3%
  • Kanagawa Prefecture: -1.0%
  • Saitama Prefecture: 9.9%
  • Chiba Prefecture: +1.7%
  • Greater Tokyo weighted average: +3.6%

Has 2018 been a buyers market, thus far?

The contract rate is the number of sales contracts divided by the number of units released for sale for the period. A contract rate of 70% is considered a healthy buyers market. The “first month’s” contract rate is the contract rate for properties sold in the first month they were released for sale. Below is the “first month’s” contract for the first four months of 2019.

  • January:  67.5%
  • February: 65.5%
  • March: 72.2%
  • April: 64.3%

For comparison, in 2018, the “first month’s” contract rate was 62.1%, which represents a YoY decrease of 6% points, and three consecutive years where the rate was in the 60-th percentile.


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Lead photo: Royalty-free stock photo via Pixabay