According to the Real Estate Economic Institute, a total of 3,372 brand new apartments were released for sale across greater Tokyo in September, up 124.5% from the previous month and up 13.2% from last year. This is the first year-on-year increase since June. Several large-scale projects in Tokyo and Chiba contributed to the supply. Also, September is typically busier than August due to the start of the Autumn sales period.
The average sale price was 51,360,000 Yen, down 11.8% from last year. The average price per square meter was 800,000 Yen, down 5.4% from last year. Developers are struggling to secure sites in prime locations. As a result, the supply of higher priced apartments is dwindling, resulting in lower average prices.
The contract ratio was 66.5%, up 1.6 points from last year and up 2.0 points from the previous month.
Tokyo Metropolitan Area
1,458 new apartments were released for sale in Tokyo’s 23 wards, up 163.7% from the previous month and up 24.9% from last year. The average sale price was 59,900,000 Yen, down 18.6% from last year. The average price per square meter was 1,031,000 Yen, down 6.4% from last year.
The contract ratio was 68.6%. There were 4 apartments priced over 200 million Yen offered for sale in September, all receiving purchase applications.
First half of 2018
A total of 15,323 new apartments were supplied across greater Tokyo in the first half of 2018 (April ~ September), down 5.0% from the same period in 2017. Tokyo’s 23 wards saw 7,032 new apartments, down 11.1% from 2017. The contract ratio in the 23 wards was 68.8%. In Saitama Prefecture it was just 47.3%. The average apartment price in the 23 wards was 69,820,000 Yen (down 2.5%) and the average price per square meter was 1,117,000 Yen (up 2.7%).
Unsold inventory in Tokyo’s 23 wards was down 11.5% from 2017, while Chiba Prefecture (+34.9%) and Saitama Prefecture (+27.5%) both saw an increase.
The average size of a new apartment released for sale in Tokyo’s 23 wards was 62.51 sqm (673 sq.ft), 5% smaller than 2017. The average apartment size in Osaka City was 46.89 sqm (505 sq.ft), down 5.7%.
Source: The Real Estate Economic Institute, October 16, 2018.