On the 7th, Tokyo Kantai Co., Ltd. announced the results of its "Resale Value (RV) Survey of Existing Condominiums after 10 Years in the Tokyo Metropolitan Area in 2023." The survey extracted cases of condominiums that were circulated as existing units in 2023 from condominiums built 9 to 11 years ago registered in the company's database, and compared their initial sale prices with their circulation prices.
In the Tokyo metropolitan area, RV was calculable for 445 stations, with an average RV of 139.5%. At the time of the condominiums' initial sale, the market had just entered a period of recovery after the Great East Japan Earthquake, and prices had only recently begun to rise. Consequently, the sale prices of new condominiums were considerably cheaper compared to the recent past, which significantly impacted the rapid price increases of both new and existing condominiums in recent years.
Out of the 445 stations, RV exceeded 100% in 437 stations, with property values appreciating compared to their initial sale prices in 98.2% of stations. Particularly noteworthy, RV exceeded 150% in 121 stations, accounting for 27.2% of all stations. Only 8 stations experienced a decrease in RV, all with decreases of less than 10%.
The station with the highest RV among those surveyed was "Shin-Ochanomizu" on the Tokyo Metro Chiyoda Line, with an RV of 295.5%, nearly tripling in price after 10 years of construction. The average price per tsubo (3.3 square meters) at the time of initial sale was ¥4,248,000, whereas the circulation price after 10 years was ¥12,552,000. However, it's worth noting that the cases surveyed were all circulated properties from large-scale tower condominiums near the station, all of which were on floors 20 or higher, potentially skewing the results upwards. Following closely, "Roppongi-itchome" on the Tokyo Metro Namboku Line reached 265.7% (initial sale: ¥4,796,000 per tsubo, circulation: ¥12,742,000 per tsubo), and "Iidabashi" on the JR Sobu Line reached 223.1% (initial sale: ¥3,938,000 per tsubo, circulation: ¥8,784,000 per tsubo). The top 30 stations were all within the 23 wards of Tokyo, with "Shin-Yokohama" on the JR Yokohama Line ranking 64th with 163.2%.
Furthermore, a calculation was made for the profit difference when selling after 10 years of rental operation. The station with the highest profit difference was "Roppongi-itchome," ranked second in RV, with a profit difference of ¥10,750,000 per tsubo. The rental income per tsubo over 10 years was ¥2,804,000, and the selling profit per tsubo was ¥7,946,000, equivalent to an annual yield of 22.41%.
This translation captures the detailed information and context provided in the original Japanese text, ensuring accuracy and clarity in English.
Reprinted from: Real Estate Distribution Research Institute Co., Ltd. “R.E.port”
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