Japan's housing market continues to impress
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Loading... - Alex Pinyin
- 18 Jan 2022
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The average price of existing condominiums in Tokyo rose strongly by 10.12% (inflation-adjusted) in Q3 2021 from a year earlier, a sharp improvement from the previous year’s 3.97% increase. During the latest quarter, existing condo prices increased by 3.65%.
Likewise, the average price of new condos in Tokyo soared by 11.89% during the year to Q3 2021, in contrast to the prior year’s 4.04% fall. On a quarterly basis, new condo prices rose by 4.07% in Q3.
Demand rising; construction activity improving
Existing condominium sales in Tokyo rose strongly by 12.8% to 33,678 units in the first ten months of 2021 from a year earlier, following a 5.9% fall in 2020, according to The Land Institute of Japan. Likewise, sales of existing detached houses in Tokyo rose by 7.3% y-o-y to 17,644 units over the same period.
From January to October 2021, dwelling starts in Japan rose by 5.3% y-o-y to 714,677 units, following annual declines of 9.9% in 2020 and 4% in 2019.
Rents, rental yields: poor yields at 2.66%
Tokyo apartment costs are high, at around $16,322 per sq. m.
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Japan: typical city centre apartment buying price, monthly rent (120 sq. m) |
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Buying price |
Rate per month |
Yield |
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Tokyo |
$1,958,640 |
$4,346 |
2.66% |
