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Japan 2023 average new condo price hits record high for 7 years in row

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Breaking down the Tokyo metro area might be more helpful …

According to the Tokyo-based Real Estate Economic Institute, the average price for a condominium unit in Tokyo’s 23 wards was ¥114.8 million in 2023, a year-on-year increase of 39.4%. 

In the Tokyo metropolitan area as a whole—including the prefectures of Tokyo, Kanagawa, Saitama, and Chiba—the average price for a new condominium unit set a record high for the third consecutive year, rising by 28.8%, to ¥81.0 million. Demand was robust even outside of central Tokyo, backed by dual-income households earning high salaries, with the average price per unit rising 12.2% in Kanagawa to ¥60.7 million, 4.0% in Chiba to ¥47.9 million, and 3.7% in western Tokyo to ¥54.3 million.

https://www.nippon.com/en/japan-data/h01896/

3 ( +4 / -1 )

Just the number of super-lux sky boxes being sold to rich Chinese and the increased cost of imported materials caused by the weak yen has pushed up the average price. Your average slum mansion in Hachioji hasn't doubled in value.

11 ( +13 / -2 )

The average unit price of new condominiums across Japan hit a record for the seventh straight year in 2023 due to continued rises in construction material and labor costs, climbing 15.4 percent to 59.11 million yen, a research institute said Wednesday.

Kyodo running cover for Japanese capital as usual.

Housing becoming a financialized tool for the capital rich is the cause of people being priced out of the housing market, not the Indians, Africans and Turks and disenchanted youth working at construction sites.

https://www.japantimes.co.jp/news/2022/09/01/business/economy-business/property-market-japan/

6 ( +8 / -2 )

Nikkei reports that overseas investors are snatching up Tokyo properties they view as undervalued: “The influx of foreign demand has transformed condos in prime locations from places of residence to investment vehicles for owners with no intent to live there full-time.”

And a Japan Today article from last autumn examines “Chinese grabbing up Tokyo real estate.”

The acquisitions are by no means limited to Tokyo. Chinese buyers are also shopping for properties on the Boso Peninsula of Chiba, in Kawaguchi City in Saitama, and Bashamichi in central Yokohama. And also resort areas even further away from the metropolis, such as Komoro, a city of around 40,000 close to Karuizawa in Nagano Prefecture, and the scenic Tsumagoi Village in Gunma Prefecture.

https://japantoday.com/category/features/kuchikomi/chinese-grabbing-up-tokyo-real-estate

10 ( +10 / -0 )

59million yen is not luxury. That’s about a 67sqm 3LDK. My Japanese friend just took out a 35 year loan for one of a similar price. Will never understand why Japanese actually take out mortgages on these things and cram their kids into them. If you’re going to take out a mortgage get a house, much more useful for a family!

9 ( +13 / -4 )

Some days, those foreign investors will sell their aging, therefore devaluated properties, leaving a lot of empty mansions in central Tokyo. This will result in a crumble of the activity and market, and prices will get down

7 ( +8 / -1 )

What about house prices? I wouldn't live in a flat again (that's what these are) especially not at that rediculous price.

4 ( +7 / -3 )

Tokyo is sold slowly to Taiwan and China to so called "investors". Is funny how you can see those new sky tower buildings that even not finished, are arelready sold to Chinese or Taiwanese investors or scamming Real Estate Agencies, that resale them at 30-40% more.

-1 ( +4 / -5 )

Really function of depopulation and aging, land very unattractive as an investment. Mansions, best way to reduce your exposure to financing land. Older people and smaller families like ease of life, safety and community of mansions relative to single family homes.

-2 ( +1 / -3 )

The tea leaves of rising prices suggest that the Tokyo metropolis will sooner or later descend into the rot of a parasitical rentier society.

-1 ( +2 / -3 )

Get out of the Rat Race and movie to the suburbs the country side, get your self a nice place for about 1/4 the cost.

8 ( +9 / -1 )

This is a "reports itself" free story for the media which actually means very little for society as a whole. Supply is 65,000 a year. Many buyers are retirees so lets assume 2.6 or so average occupants. That's 150,000 people a year, 1.5 million in 10 years. So the 10 year supply is enough to house 1.5/125 or about 1.3 or whatever percent of the population. In ten years!

While I am very interested in housing in Japan, especially the energy efficiency, comfort, earthquake, and akiya problem angles, how a wealthy 1% of the population chooses to house itself is not something I view as particularly interesting or relevant.

2 ( +2 / -0 )

Affordable housing to encourage young families to increase there numbers, will become essential to tackle depopulation. Also for young married couples to start blessing marriage with children.

3 ( +3 / -0 )

Interesting .. no inflation, FX Yen=150sh, salary flat in the last 30 years! and condos going up, low JP population in decline with a high ration of elder people for social security by youngsters .. most of these investments and purchases come from overseas a perfect windows of opportunity on the low Yen .. tight tiny future for the local young Japanese generations.

2 ( +3 / -1 )

If they are using scarce land and other resources to build condos that will be bought by non-residents, then I think that is a big problem. The US and Canada already sold out.

2 ( +2 / -0 )

In Tokyo and the three neighboring prefectures of Kanagawa, Chiba and Saitama, the average unit price of new condominiums surged 28.8 percent last year to 81.01 million yen

81 million yen? That's about a half-million US dollars.

In Tokyo, I would think the average price would be higher than that.

That said, it's reason no. 38,247 why I'm glad I'm paying 70,000 yen a month to rent a decent-sized three-bedroom house here up north.

5 ( +5 / -0 )

No one mentioning Body Corporate Fees .

My building has doubled the fee over 6 years...with a compliant vacant owner bloc Okaying the increase.

I did some research on the management company, and found their annual reports indicate a move from profits from actual sales of condo''s to a greater share of profits from management fee's.

For people retired or on fixed income these increases do bite.

Buy a house without these fees and save.

However, I couldnt live in Tokyo in any event...my observation where I do live is that the market bottomed out 5 years ago, all the bargains are gone and investors from UK and USA etc., not Chinese, are buying property for air bnb.

China has it's own property crash...unsure how long "rich Chinese investor " class will last.

5 ( +5 / -0 )

81 million yen? That's about a half-million US dollars.

In Tokyo, I would think the average price would be higher than that.

1DKs and 2DKs will drag the average down.

Only rich people buy newbuild mansions. So the article is the equivalent of saying "the average price of a Mercedes Benz is up 10%" or "the average price of a Chanel handbag is up 10%". It is not an indicator of the average housing cost for the average person. These are not average forms of housing, even for people working in average jobs in Tokyo.

5 ( +5 / -0 )

i am not jealous or whatever, living in a 15 years old apartment, 15 minutes walking distance to metro station, 30 minutes metro travel time to my working office, with nearby school for my kids. I am more that happy and satisfied with my current place, it is paradise for me. that hyper luxurious condo? let those corrupted chinese commies politicians / businessman go and buy it. thanks for investing in Japan!

2 ( +4 / -2 )

81 million yen? That's about a half-million US dollars. 

In Tokyo, I would think the average price would be higher than that.

In Tokyo’s 23 wards, the average price was ¥114.8 million. The ¥81 million average includes much lower priced properties in Saitama, Chiba, and Kanagawa.

0 ( +1 / -1 )

Mark you nailed it. To tell you the truth in light of the fact that housing loans in Japan are non-recourse and cannot be forfeited in bankruptcy, I think it is high risk to buy such an expensive condo in Tokyo. The big earthquake is coming as well and hopefully your water and elevator will function? I think it is better to rent modestly in Tokyo and buy something in the countryside for retirement or a retirement home in your country of birth.

4 ( +4 / -0 )

Get out of the Rat Race and movie to the suburbs the country side, get your self a nice place for about 1/4 the cost.

did that in 2016 got a bargain, 3 floor 440m2, 8LDK, garage and big office area, parking for 5 cars, new price 80 million bought it for 25mil spent 4 mil on refurbishing. being steel concrete construction will last at least 60-70 yrs with maintenance

the advantages of buying from the bubble generation.

3 ( +3 / -0 )

Any mansion built after Hanshin / Kobe earthquake in 1995, MUCH safer than any other housing. Safely, key factor for many. Many do not like tower mansions, vast majority of new mansion units hitting market less than 14 stories, usually less than 10, about 7 being typical.

Mansion new construction would be much faster but too many people stuck in aging homes and unable to sell with no buyers, so unable to downsize to a mansion.

1 ( +3 / -2 )

My area of West Tokyo, last several years, conservatively 99% NEW units hitting market are mansions, most new homes simply tear down and rebuild, not new inventory.

0 ( +2 / -2 )

Trend I've noticed, home tear down, multi-unit replacing it. Often duplex, but many cases 3-10 units, rental in nature. Many duplexes are grandparents downsizing, having their child and grandkid(s) move into other unit.

1 ( +2 / -1 )

Japan 2023 average new condo price hits record high for 7 years in row

So the property tax goes along with that. Good news for the local governments.

2 ( +2 / -0 )

Mansion property taxes remain unchanged in my experience, so fixed annuity tax expense but certainly expensive mansions will pay more tax every year.

Was told by real estate people, property taxes would go down after so many years, but rather doubt it, since values have gone up and local govt. revenue shortfalls.

Big Govt. Tax receipt is of course at purchase, 10%., but those that bought prior to 2014 only paid 5%. Not met homeowner excited about their maintenance problems, with mansions there's no worries, except hassle when the building goes thru its scheduled maintenance.

0 ( +2 / -2 )

Mansion and apartment blocks require a service charge. Sometimes substantial. But cheaper earthquake insurance.

3 ( +5 / -2 )

When a house or group of houses is replaced by a mansion block the number of people greatly increases putting pressure on services and utilities. Sometimes having to dig up the road to install bigger water and gas pipes. Increase in number of cars.

4 ( +5 / -1 )

I like living in a location where there are only houses and the beach.

6 ( +6 / -0 )

Mansion and apartment blocks require a service charge. Sometimes substantial.

and not to mention the fee for a car park is extra, up to 200-300k a year in Tokyo Osaka.

when you buy your own land you can park as many cars thatll fit , and for free

8 ( +8 / -0 )

wtfjapan

did that in 2016 got a bargain, 3 floor 440m2, 8LDK, garage and big office area, parking for 5 cars, new price 80 million bought it for 25mil spent 4 mil on refurbishing. being steel concrete construction will last at least 60-70 yrs with maintenance

Is warmth an issue in winter, and heat in summer? Genuinely curious — not trying to be snarky. I haven’t been in many houses in Japan that held heat well in the winter and cool air well in the summer.

1 ( +1 / -0 )

Been paying minimal rent in the countryside, (just outside the city) for 30 years. Now the possibility of buying the place has appeared, but at the same time have just been offered a traditional farmhouse. Cheap as chips. Both include parking space for five cars. Everything within easy reach. Spoilt for choice really.

As an investment I can kind of get it, but really glad that I won't ever have to go back to living in a city apartment/condo again. Don't have to worry about the neighbo(u)rs for a start, and I can make as much noise as I like!

7 ( +7 / -0 )

Is warmth an issue in winter, and heat in summer? Genuinely curious — not trying to be snarky. I haven’t been in many houses in Japan that held heat well in the winter and cool air well in the summer.

In the cold months heating bill for our 6DK is about ¥5,000 per month. The same for the hot months for the AC. Spring and autumn require none.

Places outside of the city use bottled gas which is twice as expensive as piped gas.

3 ( +3 / -0 )

To each his own, but single families =LOUSY investment, market's shrinking, buyers don't want them. Hence all the empty homes, more so every day. NRI projects 1/3 of Japanese single-family homes will be empty by 2033.

By all means, catch a falling knife, see how it works for you!

-2 ( +1 / -3 )

Not a surprise being one of the best countries to live in the world..

-2 ( +0 / -2 )

Is warmth an issue in winter, and heat in summer?

I think that depends of if you and your spouse are still sleeping together.

1 ( +1 / -0 )

Why by a cardboard box that goes down in value the older it gets? After 30 years you get a choice of picking a unit after the developer purchase the land and agrees with the HOA and then the tenants have to jockey with the developer for their choice of a block of units set aside after the rebuild.

-1 ( +1 / -2 )

Why by a cardboard box that goes down in value the older it gets? After 30 years you get a choice of picking a unit after the developer purchase the land and agrees with the HOA and then the tenants have to jockey with the developer for their choice of a block of units set aside after the rebuild.

HOAs, in Japan?

0 ( +0 / -0 )

humid shoe box hits record high??? LOL

0 ( +0 / -0 )

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