Year End Tokyo Market Report

This is Chiaki from the Sales Division at Housing Japan.

I have been sending out weekly emails with updated information on hot properties and the current trends in the Tokyo real estate market.

If at any time you would want me to forward my previous issues or subscribe to new ones, please feel free to contact me using the form below.

As we are approaching the end of 2014, I would like to wrap up our last few months discussion with a summary and presentation on the Tokyo real estate market trends.

Down below is a summary and table of contents for the Tokyo Market Report presentation that we here at Housing Japan have compiled this year.

Please download the Tokyo Market Report presentation from here.

Report Contents

2. Tokyo has the largest GDP of all major cities in the world

3. Population in Tokyo has increased steadily for over 60 years , and has exceeded the 2025 estimations of population growth

4. Foreign population has also increased in Tokyo from 2012

5. New office supply has been increasing since 2013

6. 46.1% of major companies are located in Tokyo, and 76.4% of foreign-affiliated company headquarters are in Tokyo

7. Tokyo office vacancy rate has been decreasing, and the rental price has been increasing

Japan Growth Potential

8. With the Abenomics, the stock market doubled, the Yen weakened, and the REIT index has been going up

9. 2020 Olympics will take place within a 8km radius in Tokyo

10. Asian Headquarter District will allow more foreign companies to be located in Tokyo with special incentives and support from the government

11. Redevelopments in Shibuya, Roppongi, the Bay Area, Shinagawa, Toranomon, Nihonbashi, and Marunouchi area will create new business districts

12. Proposed casinos and integrated resorts will increase public spending and lower government debt

13. Tokyo is the No. 1 key tourist cities in the world, but still has much potential to grow in the tourist business

14. 10,000 foreign tourists have come to Japan in 2013, and it is anticipated to grow to 20,000 by 2020

15. The Linear Chuo Shinkansen Line will connect Tokyo to Nagoya in 40 minutes by 2027

Tokyo Real Estate Report

17. Tokyo is ranked 10th in buying price per sqm, but has the highest gross rental yield in the major international cities

18. Compared to Hong Kong, Tokyo rent is the same, but half in price, making the rental yield much higher

19. Even compared to Singapore, Tokyo real estate per square feet is significantly lower, and has more advantages in terms of ownership

20. Property prices in Tokyo has been extremely steady from the 1980s regardless of the “bubble” period

21. Land prices has increased 30% since 2006, meaning capital gain can be anticipated in the future too

22. In the current market, newly built and second-hand apartments are equally increasing in price with the increased construction costs, land value, and anticipation

23. During the mini bubble in 2002, the price of Roppongi Hills Residence doubled, and a similar trend has been occurring since 2012

24. Rent of luxury apartments in central Tokyo has been increasing

25. Household ratio in Tokyo is actually the lowest in the country

26. Almost 70% of units for sale in Greater Tokyo are 3 Bedroom units

27. Regardless of the low household ratio, the intention to own building and land within the 20s and 30s are extremely strong

28. Average rent for different types of households has increased over the years

29. Majority of Japanese residents aged 20 to 70 want to live in Tokyo in the near the future

30. Even for retirement, Greater Tokyo is the most preferred location

Housing Japan Property Management Service

31. Overview of PM service

32. Different plans of PM service

Moving on, kindly allow me to introduce to you our hot properties of the week. Please do not hesitate to contact me regarding these properties; I am always here to help!

Apartments in Central Tokyo

50-80sqm 80-110sqm 110-140sqm 140sqm+

Houses in Central Tokyo

80-120sqm 120-160sqm 160sqm+

This newsletter will be the last of 2014, and I will be in touch again next year with more Tokyo real estate reports and updates!

Happy Holidays!

Best Wishes,

Chiaki


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Housing Japan

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+81 (0) 3-3588-8860