New apartment supply in Tokyo sinks to 41 year low

According to the Real Estate Economic Institute, 2,701 new apartments were offered for sale across greater Tokyo in November, down 7.0% from the previous month and down 22.7% from 2015. This is the lowest level seen for the month of November since 1975. The leading cause of the drop in supply was that there were very few large-scale, 100-unit-plus apartment buildings offered for sale.

1,689 apartments were sold, resulting in a contract ratio of 62.5%, up 0.9 points from the previous month but down 19.6 points from last year.

195 apartments in high-rise buildings (over 20-storeys) were released for sale, up 27.5% from the previous month but down 83.1% from last year. The contract ratio was 65.1%, down 27.2 points from last year.

The average price of a new apartment across greater Tokyo was 51,610,000 Yen, down 4.5% from the previous month and down 18.4% from last year. The average price per square meter was 749,000 Yen, down 5.5% from the previous month and down 14.0% from last year.

The following buildings saw same-day sellouts in November:

  • Cielia Shonan Tsujido, Chigasaki City: 34 apartments sold; average price of 49,620,000 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

1,119 apartments were offered for sale in the Tokyo metropolitan area, down 10.3% from the previous month and down 29.8% from last year. 685 apartments were sold, resulting in a contract ratio of 61.2%.

The average new apartment price was 56,700,000 Yen, down 12.1% from the previous month and down 31.2% from last year. The average price per square meter was 856,000 Yen, down 14.6% from the previous month and down 26.1% from last year.

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

  • Studio: 6 (50% contract ratio)
  • 1-Bedroom: 25 (59.5%)
  • 2-Bedroom: 138 (65.1%)
  • 3-Bedroom: 483 (61.2%)
  • 4-Bedroom: 24 (54.5%)

 

Average sale price:

  • Tokyo’s 23 wards: 56,700,000 Yen (-32.1% from Nov. 2015)
  • Western Tokyo: 53,260,000 Yen (+15.7%)
  • Kanagawa Prefecture: 48,160,000 Yen (+4.0%)
  • Saitama Prefecture: 43,720,000 Yen (-14.0%)
  • Chiba Prefecture: 43,160,000 Yen (-5.0%)

 

Average sale price per square meter:

  • Tokyo’s 23 wards: 856,000 Yen (-26.1% from Nov. 2015)
  • Western Tokyo: 769,000 Yen (+25.9%)
  • Kanagawa Prefecture: 685,000 Yen (+7.7%)
  • Saitama Prefecture: 600,000 Yen (-13.8%)
  • Chiba Prefecture: 602,000 Yen (+0.3%)

 

The Institute is expecting 7,000 apartments to be offered for sale in December (2015 = 6,189 units; 2014 = 9,389 units; 2013 = 8,246 units; 2012 = 7,773 units).

Source: The Real Estate Economic Institute, December 14, 2016.

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