Average Home Price in Tokyo is 10 Times the Annual Salary

Tokyo Kantai released a report that shows the average price of a condominium sold in Tokyo in 2018 was over ten times the annual income. The average cost for a newly-built condo in Tokyo was 13 times higher than most Tokyoites' yearly salary, and ten times higher for pre-owned units. Newly-built condos saw an increase for the seventh consecutive year, and pre-owned units saw a boost for the sixth straight year, marking the highest level in the last ten years. The report shows that it is becoming increasingly harder for the average annual earner to afford a home in the city.

Nationally, the average price for a newly-built condominium was eight times the annual income, a slight increase from the previous year. The reason for the nationwide increase is due to the construction of new properties in strategic locations across rural areas. The annual income to home price ratio in Japan is the highest in Tokyo, followed by Kyoto and Kanagawa, both at 11 times the yearly salary. Okinawa comes in third place at ten times the annual income.

Nationally, the average price for a pre-owned condo was five times the annual income, also a slight increase from last year. The prefectures with the most significant increase in annual income to home price ratio from the previous year were Tokyo and Okinawa, respectively. 

The survey results were calculated by dividing the sold price of a condominium (minimum 70 sqm and at least ten years old for pre-owned units) by the average annual income. The annual salary was calculated by using the average employee wage by prefecture.

Source

Editorial Department

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