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Standard Land Price in Tokyo for 2014

Post: Friday September 26, 2014

On Sept.19 Ministry of Land, Infrastructure, Transport and Tourism announced the standard land prices for the designated points nationwide. Prior to this on Sept.18, Tokyo Metropolitan Government also announced the land prices in Tokyo. The standard land price (*later explained in more detail) is the price of land per 1 square meter for each selected point as of July 1st every year. The average increase in price for land (for all usage) in Tokyo is +1.8% from last year. This is a 2 year consecutive increase and compared to last year’s increase of 0.5%, is 1.3 points higher. In addition to hints of an economic recovery, business opportunity is growing around various redevelopment projects in Tokyo in preparation for Olympic Games in 2020.

 

kijunchika2014

 


Residential Area

The average price increase in Tokyo is +1.3% which is 0.8 points more than last year’s increase. Within the 23 wards of Tokyo, there is no downward point; the average price is +1.9% which is a 1.4 point increase from last year. The highest increase in Tokyo is +7.5% in Chuo Ward which has marked a 5.2% increase from last year. Chiyoda Ward is followed by +5.5%, and Minato Ward is 3rd with +5.4% from the price last year. The average price rise of “Central Tokyo 5 Wards” including Shinjuku Ward and Shibuya Ward is +4.1. When you compare to the +1.6% average price increase in all the other areas than the 5 wards, you can see the price rise in central Tokyo is markedly remarkable. Demand for condominiums in the Tokyo Bay area remain firm due to expectation for infrastructure improvement heading towards the Olympic Games. Older high class residential areas are also attracting lots of attention.


The highest increase in price nationwide is +10.8% in Tsukishima 3-Chome area in Chuo Ward. Super high rise condominiums with average sales prices of 70 million yen and other premium apartments have all sold out the fastest since the Lehman shock in 2008. Bancho area in Chiyoda Ward is a well-known high class residential area whose land price is also going up. A premium condominium with an average price of 120 – 140 million yen have also sold out before the actual move-in date in late September.

 

月島

Tsukishima, Chuo-ku 

 

 

Ranking by PriceTop 5 points(23 Wards Residential Area)

Address of Price Point Residential Area Price (1000Yen/㎡) Fluctuation(%)
 ① 6-1, Rokuban-cho, Chiyoda-ku  3070  6.6
 ② 9-4, Sanban-cho, Chiyoda-ku  2260  6.1
 ③ 2-10-4, Kojimachi, Chiyoda-ku  2020  3.1
 ④ 5-13-1, Roppongi, Minato-ku  1760  7.3
 ⑤ 12-10, Niban-cho, Chiyoda-ku  1730  6.1

 

Ranking by Amount of Price Increase Top 5 points(23 Wards Residential Area)

Address of Price Point Residential Area Price (1000Yen/㎡) Fluctuation(%)
 ① 3-25-3, Tsukishima, Chuo-ku   981  10.8
 ② 5-13-1, Roppongi, Minato-ku  1760  7.3
 ③ 6-1, Rokubancho, Chiyoda-ku  3070  6.6
 ④ 12-10, Nibancho, Chiyoda-ku  1760  6.1
 ⑤ 9-4, Sanbancho, Chiyoda-ku  2260  6.1

 (Source: The Tokyo Shimbun *Lot number is used when address is not fixed yet. Round off to one decimal place)

 

 

 

Commercial Area

The average price rise in Tokyo is +2.7% which is 2.0 point increase from last year. All 23 wards of Tokyo saw a rise. The average price rise is +3.2% which is a 2.4 point increase from last year. The price rise in Chuo Ward is +6.4% which marked a 1.1 point increase from last year. Chiyoda Ward is followed by +5.3%, and next Minato Ward with +4.9% from last year. The average price rise of “Central Tokyo 5 Wards” including Shinjuku Ward and Shibuya Ward is +5%. When you compare to +2.2% which is the average price rise in all other areas than the 5 wards, you can see the price rise in central Tokyo is remarkably high again. The highest price rise point of land in Tokyo is +12.1% in Ginza 6-Chome area in Chuo Ward.

 

Due to these up-ward trends of land price, large scale office buildings are attracting lots of attention. Mori Building Co., Ltd. opened Toranomon Hills in June and Mitsui Fudosan Co., Ltd. opened Coredo Muromachi 2 & 3 in March; all properties are close to almost full occupancy. Responding to such high demand, large scale redevelopment projects will start one after another in Tokyo. Projects in Toranomon, Shinagawa, Shibuya, and Meguro areas will start development aimed to be completed before the Olympic year in 2020 so the commercial areas in Tokyo will be continuously active.

 

虎ノ門ヒルズ コレド室町
Toranomon Hills                                                         Coredo Nihonbashi


Overseas and domestic investment money flowed into the real estate market and active real-estate transactions are helping push up the land price of the commercial areas in Tokyo. The proposed sale of the office building in front of Tokyo Station, the “Pacific Century Place Marunouchi (PCP)” for about 170 billion yen to the Government of Singapore Investment Corporation Pte Ltd (GIC) would be one of the largest real estate transactions this year. Mori Trust Co, Ltd. bought the “Meguro Gajoen” complex which is a famous wedding center for about 130 billion yen in August. Easy money flowing into the market by monetary easing and low-interest rates are spurring more real estate investments; and in effect pushing up the land price.

 

 

Ranking by PriceTop 5 points(23 Wards Commercial Area)

Address of Price Point Commercial Area Price (1000Yen/㎡) Fluctuation(%)
 ① 2-6-7, Ginza, Chuo-ku  22600  10.8
 ② 3-3-1, Marunouchi, Chiyoda-ku  21500   7.0
 ③ 1-2-4, Otemachi, Chiyoda-ku  20400   6.3
 ④ 6-8-3, Ginza, Chuo-ku  14800  12.1
 ⑤ 1-18-2, Nishi-Shinjuku, Shinjuku-ku  12900   5.7

 

Ranking by Amount of Price Increase Top 5 points(23 Wards Commercial Area)

Address of Price Point Commercial Area Price (1000Yen/㎡) Fluctuation(%)
 ① 6-8-3, Ginza, Chuo-ku  14800  12.1
 ② 5-1-27, Minami-Aoyama, Minato-ku   9650  11.9
 ③ 2-6-7, Ginza, Chuo-ku  22600  10.8
 ④ 3-3-3, Harumi, Chuo-ku   1250  10.6
 ⑤ 3-10-4, Tsukishima, Chuo-ku   1510  10.0

(Source: The Tokyo Shimbun *Lot number is used when address is not fixed yet. Round off to one decimal place)

 

 

 

*What is Standard Land Price?

The standard land price is the price of land per 1 square meter that is evaluated for each selected point of land as of July 1st every year. The Prefectural Governments are responsible for its survey and Ministry of Land, Infrastructure, Transport and Tourism releases the nationwide results. It is one of the two major representative data that shows the fluctuation of land price along with the official land price that is announced on Jan.1 every year.

 

The official land price is mostly intended within city planning area whereas the standard land price is intended also for residential area, commercial area, industrial area, and forest land outside of city planning area.

 
Real estate pricing in Japan - 6 different land prices

 

 

 

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This entry was posted in Real Estate News, Market Info.

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