Used home prices in central Tokyo hit a new record high again!
According to the latest data, the average asking price (per 70m²) for used apartments in Tokyo's six central wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya) exceeded 170 million yen in August, setting a new record high since statistics began. This price rise is thought to be due to a shortage of new properties, as well as the active purchase and resale of used properties by wealthy individuals.
Soaring apartment prices have led to an increase in the number of people who cannot purchase homes, resulting in increased demand for rental properties. The number of rental housing starts in Tokyo in July reached 6,177 units, a 12% increase from the same month last year, accounting for more than 60% of all new housing construction. Developers also seem to believe that it is more rational to "rent out" properties than to sell them. As long as this situation continues, housing prices and rents are likely to rise further.
If you were to live in Tokyo, would you stretch your budget to buy a house? Or would you choose to rent?
The latest statistics show that the average demand for the 6th district of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, Tadaya) exceeds 170 million yen/70㎡, the highest since the founding statistics. The reasons behind the expansion, lack of supply, strong push by the wealthy class to increase assets, and other aggressive purchases at high prices, and extremely deliberate investment.
According to the latest data, the average asking price for second-hand flats (based on a 70m² equivalent) in Tokyo's six central wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, Shibuya) surpassed ¥170 million in August, setting a new record high since statistics began. This price surge is thought to stem from a shortage of new properties, coupled with active purchasing and reselling of second-hand properties by affluent individuals.
The soaring condominium prices are leading to an increase in those unable to purchase homes, resulting driving up rental demand. In July, the number of rental housing units started in Tokyo reached 6,177, a 12% increase year-on-year, accounting for over 60% of all new housing starts. Developers also seem to consider it more rational to “rent out” properties rather than sell them. As long as this situation persists, there is a risk that both housing prices and rents will continue to rise.
If you were to live in Tokyo, would you buy a home even if it meant stretching your finances? Or would you choose to rent?
