New apartment supply in Tokyo reaches 3rd lowest level in 43 years

The supply of brand-new apartments released for sale across greater Tokyo dropped to the third lowest level seen for the month of July in 43 years. According to the Real Estate Economic Institute, a total of 1,932 apartments were released for sale, down 35.3% from last year and close to the record low of 1,571 supplied in July 1976.

The average new apartment price was 56,760,000 Yen, down 8.3% from last year. The average price per square meter was 860,000 Yen, down 6.2% from last year. The contract ratio was 67.9%, up 0.1 points from last year.

In Tokyo’s 23 wards the average price was 65,400,000 Yen, down 10.0% from last year. The average price per square meter was 1,067,000 Yen, down 6.9% from last year. The contract ratio was 66.4%. The contract ratio for apartments priced over 100 million Yen was 82.2%.

New supply has been limited by developers as they focus on selling off existing inventory. Unsold inventory was 7,115 units at the end of July, down 323 units from the previous month but up 853 units from July 2018. Several large-scale projects going on sale this Autumn will see supply increase once more.

Source: The Real Estate Economic Institute, August 19, 2019.

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