Tokyo Second-Hand Home Prices Surge to Record Highs

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

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

Investment capital continues to flow into Tokyo’s six central districts, pushing the average price to 148 million yen, up 3 per cent from the previous month, suggested the report.

In Chiyoda and Minato, prices surged to record highs of 208.5 million yen and 201.7 million yen, respectively, 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.

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 per cent year-on-year in January, according to data.