Tokyo second-hand home prices break record highs

Tokyo second-hand home prices surged 25 percent in a year, with listing prices in two wards surpassing 200 million yen (HK$10.5 million) for the first time, according to real estate firm Tokyo Kantei.

The average price for second-hand apartments across Tokyo’s 23 wards reached 90.21 million yen in January, up 25.6 percent year-on-year and 3.4 percent month-on-month, according to Tokyo Kantei data.

Investment capital continues to flow into Tokyo’s six central districts, pushing the average price to 148 million yen, up 3 percent from the previous month, the firm said in a report.

In Chiyoda and Minato, prices surged to record highs of 208.5 million yen and 201.7 million yen, respectively, both surpassing the 200-million-yen mark for the first time since records began in 2004. The other four central districts also hit their highest levels on record.

Tokyo Kantei said in addition to strong demand from wealthy buyers and foreign investors, soaring construction costs and limited new home supply have further fueled the price surge.

New home supply in Tokyo’s 23 wards dropped 59 percent year-on-year in January, according to data from the Japan Real Estate Economic Research Institute.

STAFF REPORTER