Asking price for Tokyo apartments reaches record high since 2002

Residential property price growth has been supported by factors such as the work-from-home trend and tax reduction incentives 

According to Japan Property Central, the average asking price of apartments across greater Tokyo increased 10.1 percent from last year, the highest level since 2002.  

For buyers who decided to sit on the sidelines throughout 2020, this may come as a shock. As stated by Tokyo Kantei, the average asking price of a 70 square metre secondhand apartment across greater Tokyo was JPY40,440,000 (USD365,807) in May.  

This is a 0.6 percent increase from the previous month and a 10.1 percent jump from last year, the highest level seen since record-keeping began in 2002.  

Asking prices are up year on year across the board in the greater Tokyo, Kinki, and Chubu regions.  

In Tokyo’s 23 wards, the average price was JPY63,060,000, a 0.5 percent rise from the previous month, and a 10.8 percent rise from last year.  

Meanwhile, Yokohama City saw prices up 6.8 percent from last year, and Saitama City saw 12.3 percent.  

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Osaka City experienced the more modest increase at 3.9 percent, while Kobe has seen a 2.3 percent increase.  

Moreover, in central Tokyo’s six wards of Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya, the average asking price was JPY91,170,000, up 0.1 percent from the previous month and up 8.9 percent from last year. Prices have risen by 20.5 percent since early 2019. 

Residential property price growth has been driven by higher demand for more comfortable houses to support the current work-from-home trend, tax reduction incentives, low interest rates, and high share prices giving affluent investors money to burn.