Since central Tokyo is made up of 23 wards, with each one different in terms of character, it's no surprise that they have different real estate trends and pricing for buyers.
For example, in Minato Ward, which is densely populated by office buildings, the price of new apartments is the highest in Tokyo, at an average of JPY 126,820,000 for 70 sq m of space. As there are plans to add two new train stations in Minato by 2020, one between Kamiyacho and Kasumigaseki on the Hibiya Line, and another between Shinagawa and Tamachi on the JR Yamanote Line, prices are likely to stay high in this area for the next few years.
The lowest price point can be found in Katsushika Ward on the east side of Tokyo, where it costs an average of JPY 42,650,000 for 70 sq m of space. This is similar to the pricing in Adachi, Edogawa, and Arakawa wards, which are all in close proximity. These areas are known for having a high rate of relatively young people moving in, something highlighted by Nikkei’s research in 2015, when Arakawa came up as the top choice of places to live for working families with children.
Aside from the reasonable real estate pricing, the initiatives of local governments to actively increase the number of daycare facilities and provide good healthcare for families with small children, together with spacious public parks and more nature than the rest of central Tokyo, gives these areas an advantage. For these reasons, we may see a boost in popularity in the coming years.
Interestingly, Koto Ward, which is an old downtown area closer to the centre of Tokyo, is priced at an average of JPY 68,010,000 for 70 sq m of space. Koto includes up-and-coming stylish parts of Tokyo, and a lot of people in their 20s and 30s seem to be moving in. There has been a huge increase in the number of guest houses, shops, restaurants and cafes in the ward, which is close to Nippori and Ueno Stations — giving it good accessibility from Narita Airport, and for visitors from abroad.
Shibuya Ward, which is the second most expensive ward in Tokyo after Minato, takes Number One in growth ranking in various categories. Out of nine categories that are considered barometers for growth, this is the only area to take the top spot in three major ones, which are convenience, increase in number of restaurants, and overall economic contribution. Property prices may be steep in Shibuya, but if you can get hold of a place, chances are that the returns on it will be high.
By Kaori Kitagawa
Data source: SUUMO for new apartments – central Tokyo print edition, issued on May 15, 2018. Click here to visit the SUUMO wesbite.
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