Pre-owned condominium apartments in the Tokyo Metropolitan Area – Trends and fluctuations in transaction prices in 2022

Poste date: Tuesday, March 14, 2023

We have summarized here the transaction trends for the year 2022 of pre-owned condominium apartments in the Tokyo metropolitan area (Tokyo, Saitama, Chiba, Kanagawa) which is commutable to central Tokyo and the suburbs. The transaction prices are in an upward trend year by year, mainly due to low interest rates and rising construction costs in Japan.

Trends in transaction of pre-owned condominiums in the Tokyo Metropolitan Area　

Number of contracts

In 2022 the number of contracts for pre-owned condominiums in the Tokyo metropolitan area was 35,429, which was declined (11%) from the year 2021 for the first time in 2 years.

Price Trend

The average price of pre-owned condominiums sold in 2022 was 42.76 million yen (10.5% increase from the year 2021) and increase for 10th consecutive year. The average unit price per 1m2 was JPY672,400 (12.4% increase from the year 2021), which was also increase for 10th consecutive year, and has risen by 76.1% in the last 10 years. Looking at the price range, each price range over JPY50 million seems to be increasing in terms of the number of contracts and contract ratio.

Average Exclusive Area

The average exclusive area of condominiums sold in 2022 was 63.59m2 (1.7% decline from the year 2021), shrinking for the 2nd consecutive year.

Average Age

he average age of condominiums sold in 2022 was 23.33years old (22.67years old in 2021), which is continuing to age.

Data: Real Estate Information Network System (REINS)

Price rise factors of pre-owned condominiums in Tokyo Metropolitan Area

Pre-owned condominium prices in the Tokyo metropolitan area continue to rise. The possible reasons for the price increase are as follows:

Continued low interest rates in Japan

With the lower interest rate of housing loans under the Government’s continued low interest rate policy in Japan, the number of prospective housing buyers increased.

Increased construction costs

Due to global inflation, corona disaster, war, etc., construction material costs are soaring, and due to labor shortages, labor costs are increasing.

Increase in investment from overseas and foreign buyers

Due to the significant depreciation of the Japanese yen in 2022, the number of foreigners who purchase real estate in Japan with foreign currency has increased. In addition to the trend of Japanese yen’s depreciation, the value of real estate in Tokyo is less expensive than that in other developed countries.

Increase in high-income households

The number of households called power couples who have an annual household income over JPY10 million and can purchase real estate is increasing among the younger generation. Purchases by wealthy people other than such younger generation are also increasing.

Putting Holes in Rented Apartment Walls in Japan

You may be wondering if it is allowed to drill holes in the walls of rented properties in Japan, and if so, what size holes are permitted. You may or may not be responsible for the cost of restoration of the property depending on the size of the hole. Find out how to decorate your apartment's walls, what precautions you need to take before putting a hole, and what happens if you drill or make a large hole in the walls.
Market rent in Tokyo’s 23 wards by Types of Floor plans

This article provides information on rent prices in the 23 wards of Tokyo as of 1 March 2023, by layout type. The transition of rent prices is also explained.
A Simple Guide to Home Insurance in Japan

Living in Japan and want to protect your property? From basic coverage, costs and English-speaking agencies, here is a guide to home insurance in Japan.
Lost Your Rental Keys in Japan? Here's What to Do

What to Do If You Lose the Key to Your Rental Property. Losing your rental property key can be stressful. This guide explains the steps to take, how to search for the key, report it, and handle costs like cylinder replacement, while emphasizing that lock changes require the landlord’s approval.
Timeshare and Vacation Ownership in Japan: What to Know Before Buying

Vacation ownership, or timeshare, offers access to resort facilities nationwide at member prices with a single contract. It’s more convenient than owning a second home, with various types such as Ownership-Based, Usage Rights-Based, Points System, and Timeshare. Each type has its own pros and cons, and companies may offer unique systems. Learn more about each type’s features here.
What are energy conservation standards and energy-saving housing?

With the mandatory compliance of new energy efficiency standards for newly built homes starting in 2025, interest in energy-efficient housing is increasing. This article explains how energy efficiency in homes works, how energy efficiency standards are evaluated, and the different types of energy-efficient housing.