Tokyo Has World's 4th-Priciest Homes: Trade Group Data

August 10, 2005
Tokyo Has World's 4th-Priciest Homes: Trade Group Data

TOKYO (Nikkei)--The average price of a house in Tokyo is the fourth highest in the world, trailing Singapore, London and Hong Kong, according to figures released Tuesday by an industry group.
The Japanese Association of Real Estate Appraisal's worldwide land price study for 2005 found the average price of a single-family home in Tokyo, including the land, to be 102 million yen.
In an index in which the price in Tokyo is 100, Singapore came in at 272, London at 151, and Hong Kong at 148. Tokyo used to be the costliest city in which to buy a house, but has fallen in the standings because of the drop in land prices stemming from the bursting of the economic bubble in the early 1990s.
The association conducts its study on land prices in 27 cities in 18 countries and regions across the world every two to three years. Looking at the figures for the last decade, land prices in Tokyo have been declining steadily, sinking more than 20% compared to 10 years ago.
Meanwhile, the uptrend in housing prices is growing stronger in European and U.S. cities on the back of robust real estate markets. The average price surged 270% in London over 10 years while climbing 220% in Paris. Prices have nearly tripled in San Francisco and New York as well.
Tokyo was also No. 4 in a study on rent for commercial spaces, behind Taipei, London and Beijing.

(The Nihon Keizai Shimbun Wednesday morning edition)