Fall in Price of Secondhand Apartments in Tokyo Showing Signs of Slowing
Editor’s Note: Zoe Ward is the publisher of Japan Property Central and has extensive experience in the Tokyo real estate market, working for some of the advertising agents on Real Estate Japan.
There are signs that the fall in secondhand apartment prices in greater Tokyo is beginning to slow down and bottom out. According to Tokyo Kantei, the average price for a 70 sqm (753 sqft) secondhand apartment in Tokyo’s 23 wards in December, 2011, was 40.76 million Yen (529,000 USD). This is a fall of 5.9% from one year prior, but is only down 0.1% from the previous month.
For the greater Tokyo area, the average price increased from the previous month by 0.4%, although it is still 1.6% lower than one year ago. The average price for greater Tokyo across 2011 was 29.79 million Yen (387,000 USD), which is 3.1% lower than 2010.
Prices rising in Chiba and Yokohama
Secondhand apartments in Chiba City increased by 0.5% from the previous month to 17.72 million Yen (230,000 USD), although they are still down 4.4% from 2010. Yokohama City saw an increase in prices of 0.4% from November, but prices are still 1.1% lower than the year before.
Annual price in Tokyo’s 23 wards down 3.1%
The average apartment price in Tokyo’s 23 wards for 2011 was 41.71 million Yen (541,000 USD), which is 3.1% lower than 2010. The delay in sales by developers following the March 11 earthquake led to an increase in supply of new apartments towards the later half of 2011, which put downwards pressure on the prices of apartments on the secondary market.
The Nikkei Shimbun, January 27, 2012.
Tokyo Kantei (www.kantei.ne.jp)
Photo credit: Comyu via Wikimedia Commons
Charts: Courtesy of Zoe Ward