Land transactions in Tokyo increase in 2022 – JAPAN PROPERTY CENTRAL K.K.

Even though 2023 is drawing to a close, some market data takes a long time to be released. On November 16, the Tokyo Metropolitan Government released its report on the local real estate market for land in the 23 wards for 2022.  Let’s look at a summary of the important points below:

• Land transactions increased by 0.9% from 2021.
• Residential land prices increased by 2.6% and commercial land prices increased by 3.3%. As as comparison, during the bubble economy of the late 1980s, land prices were increasing by between 50 ~ 75% on an annual basis.
• The average age of a house or apartment building was 27.7 years, and 29.3 years for non-residential buildings.
• Tokyo has 95.67 million square meters (1 billion sq. ft) of office space and 365.8 million square meters of residential space (based on house and apartment floor size).
• 7% of all office space, based on floor area, is in buildings over 60 years old. For central Tokyo’s three wards of Chiyoda, Chuo, and Minato, the share is 9%, amounting to approximately 4.57 million square meters (49 million sq.ft).
• 45% of all office space in the 23 wards was built in the 1980s and 1990s.
• 51% of office space is located in the three wards of Chiyoda, Chuo, and Minato
• Only 1.8% of residential space is in buildings built before 1959, and almost 40% was built in the 2000s and 2010s.

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