To many Singaporeans, Tokyo has an expensive image, thanks to those gloomy reports on TV showing salarymen slogging away at work till late at the office, only to return home late to tiny, shoebox apartments just to afford rent.
But how true is this image now when everything is so expensive here in Singapore?
We all know that property prices varies depending on location, size and age, you know the cue, and we indeed, found anything from as low from $118K-$882K for a studio unit in Shibuya ward. However, in this article we will examine average transacted prices of studio apartments located within 10 minutes of well known train stations in Central Tokyo.
A note on the size of apartments in Tokyo
If you’re thinking of buying an apartment in Tokyo for investment, a studio unit would be the way to go for stable rental income. Tokyo is known for its stable rental market, with a steady stream of young Japanese from other regions in Japan moving to Tokyo to find work. This forms a stable demand for rent here in Tokyo.
As most of these young workers are single and land is expensive in Tokyo, small apartments are usually the most affordable, and thus this is why the studio unit is most popular and common for investment.
Shibuya Ward
Shibuya is home to Shibuya station, one of the busiest stations in the world. We tourists also associate Shibuya with the Shibuya crossing, its reputation as a fashion centre, youth culture as well as a major nightlife area.
Studio unit at Luxury Apartment Ebisu in Ebisu
Sold for: JPY 23,200,000 or approximately SGD $281K (Sold in October 2017)
Unit Size: 23.00 sqm
Year Built: 2005
Accessibility: 6 minute walk away from Ebisu Station
Chiyoda Ward
Chiyoda ward may not boast as many shopping centres, but it is home Akihabara, (in)famous for its otaku culture. It is also in many ways, the centre of the whole of Japan, as the Imperial Palace, , the Diet, the corporate headquarters of Marunouchi and the ministries of Kasumigaseki.
Studio Unit at Dolce Akihabara EAST
Sold for JPY 20,000,000 or approximately SGD $242K (Sold in July 2017)
Unit Size: 24.79 sqm
Year Built: 2007
Accessibility: 1 minute walk away from Akasakusabashi
Minato Ward
Minato ward has some of the most expensive addresses in Japan, and the headquarters of many Japan and foreign corporations can be found here. Areas such as Azabu-juban and Shirokane are some of the most well known and prestigious.
Studio Unit at Main Stage Minami Azabu
Sold for JPY 18,700,000 or approximately SGD $226K (Sold in December 2017)
Unit Size: 20.10 sqm
Year Built: 2002
Accessibility: 8 minute walk away from Azabujuban
As one can see, Tokyo has become relatively affordable and offers good value in investment compared to countries like Singapore and Hong Kong. Singapore, with its heavy reliance on foreigners, may not enjoy a steady rental market as Tokyo.
In our next article, we will look at the expenses and taxes incurred when buying a property in Japan, see you then!