New apartment sales in October 2016

Approximately 37,000 new apartments are estimated to be released for sale in greater Tokyo in 2016, resulting in the lowest supply since 2009. In an environment of rising construction costs and rising sale prices, developers are being cautious to keep a careful balance between supply and demand.

According to the Real Estate Economic Institute, 2,903 new apartments were offered for sale across greater Tokyo in October, down 15.2% from the previous month and down 0.6% from last year. 1,789 apartments were sold, resulting in a contract ratio of 61.6%, down 10.4 points from the previous month and down 7.2 points from last year.

153 apartments in high-rise buildings (over 20-storeys) were released for sale, down 67.8% from last year. The contract ratio was 52.3%, down 27.5 points from last year.

The average price of a new apartment across greater Tokyo was 54,060,000 Yen, down 3.1% from the previous month but up 0.8% from last year. The average price per square meter was 793,000 Yen, up 0.1% from the previous month and up 4.5% from last year.

The following buildings saw same-day sellouts in October:

  • Brillia Shinagawa Togoshi, Shinagawa-ku: 25 apartments sold; average price of 71,940,000 Yen.
  • Green Homes Minami Kasai VI, Edogawa-ku: 40 apartments sold; average price of 41,630,000 Yen.
  • Premist Takao SAKULa City, Hachioji City: 9 apartments sold; average price of 38,580,000 Yen.

*Same-day sellouts occur when all of the apartments released for sale in a particular sales campaign receive purchase applications. As many developers release apartments for sale in stages, it does not necessarily mean that all apartments in the building have sold.

Tokyo Metropolitan Area Sales

1,248 new apartments were offered for sale in the Tokyo metropolitan area, down 2.0% from the previous month but up 10.5% from last year. 796 apartments were sold, resulting in a contract ratio of 63.8%.

The average new apartment price was 64,510,000 Yen, down 5.8% from the previous month and down 6.2% from last year. The average price per square meter was 1,002,000 Yen, up 1.6% from the previous month and up 2.1% from last year.

No. of sales by apartment type in Tokyo’s 23 wards:

  • Studio: 13 (72.2% contract ratio)
  • 1-Bedroom: 111 (68.9%)
  • 2-Bedroom: 182 (68.4%)
  • 3-Bedroom: 451 (61.7%)
  • 4-Bedroom: 28 (52.8%)

Average sale price:

  • Tokyo’s 23 wards: 64,510,000 Yen (-6.2% from Oct. 2015)
  • Western Tokyo: 50,760,000 Yen (+10.9%)
  • Kanagawa Prefecture: 47,360,000 Yen (-6.6%)
  • Saitama Prefecture: 41,550,000 Yen (+7.8%)
  • Chiba Prefecture: 38,600,000 Yen (+17.6%)

Average sale price per square meter:

  • Tokyo’s 23 wards: 1,002,000 Yen (+2.1% from Oct. 2015)
  • Western Tokyo: 723,000 Yen (+18.1%)
  • Kanagawa Prefecture: 678,000 Yen (-6.9%)
  • Saitama Prefecture: 578,000 Yen (+2.5%)
  • Chiba Prefecture:  513,000 Yen (+14.3%)

The Institute is expecting 3,500 new apartments to be released for sale in November (2015 = 3,496 units; 2014 = 3,337 units; 2013 = 5,006 units; 2012 = 4,093 units).

Source: The Real Estate Economic Institute, November 15, 2016.

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