The ratio of annual income divided by the purchased new property price

Advice

The ratio of annual income divided by the purchased new property price was 7.66 at the average in 2015. The ratio increased 6 years in a row and exceeded that of 1992. The ratio in Tokyo and Kanagawa were 11.30 and 11.70 respectively.

Because of the property price hike, 36 areas out of 43 prefectures experienced a growing number of ratio.

This is due to the trend of rising property price and increasing supply of high-end property, especially in Tokyo.

On the other hand, although the property price per 70㎡ rose 7.1% (2,190,000 yen), the average ratio of annual income divided by the purchased property increased only 0.2% (10000 yen), indicating the difficulty of buying a newly built condominium.

In Tokyo metropolitan district (首都圏), average property price increased 12.7%, and the ratio was 10.99. The ratio of Chiba Prefecture and Saitama Prefecture also marked over 10, which was for the first time since the economic bubble era in 1990s.

In Kinki district (近畿地方), the ratio was 8.39, which was the highest, although the average property price went very high.

Chubu district (中部地方) had the similar trend with Kinki district, and its ratio was 7.12.

Kanagawa Prefecture had the highest ratio, 11.70, while Tochigi Prefecture was the lowest at 5.40.

Data retrieved from Tokyo Kantei

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