Supply of new apartments in February reaches second lowest level in past 17 years

According to the Real Estate Economic Institute, 2,310 new apartments were released for sale across greater Tokyo in February, up 66.9% from the previous month and up 3.3% from last year. This is the second lowest number seen for the month of February since 2000. Although sales conditions are very strong in central Tokyo, the market for new apartments in suburban areas is slowing. Sales of high-rise apartments in the Tokyo bayside area, too, have been slowing.

1,579 apartments were sold, resulting in a contract ratio of 68.4%, up 6.8 points from the previous month but down 4.5 points from last year.

Unsold inventory as at the end of the month was 6,594 apartments, down 248 units from the end of January but up 475 units from 12 months ago. 

191 apartments in high-rise buildings (over 20 stories) were released for sale, down 64.9% from last year. The contract ratio was 71.2%, down 9.5 points from last year.

The average price of a new apartment across greater Tokyo was 57,930,000 Yen, down 16.2% from the previous month but up 0.3% from last year. The average price per square meter was 852,000 Yen, down 12.7% from the previous month but up 2.0% from last year.

The following buildings saw same-day sellouts* in February:

  • Geo Yotsuya Sanei-cho, Shinjuku: 11 apartments sold; average price of 103,810,000 Yen.
  • Grand Maison Sakurashinmachi Residence, Setagaya: 19 apartments sold; average price of 80,510,000 Yen.
  • Park Homes Kameari Gardens Court, Adachi: 80 apartments sold; average price of 50,270,000 Yen.
  • Cielia Shonan Tsujido, Chigasaki: 24 apartments sold; average price of 49,780,000 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

1,138 new apartments were offered for sale in the Tokyo metropolitan area, up 65.4% from the previous month but down 4.1% from last year. 755 apartments were sold, resulting in a contract ratio of 66.3%.

The average new apartment price was 69,560,000 Yen, down 24.0% from the previous month but up 11.3% from last year. The average price per square meter was 1,066,000 Yen, down 19.4% from the previous month but up 13.5% from last year.

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

  • Studio: 36 (73.5% contract ratio)
  • 1-Bedroom: 95 (70.4%)
  • 2-Bedroom: 148 (69.8%)
  • 3-Bedroom: 258 (58.8%)
  • 4-Bedroom: 31 (68.9%)

 

Average sale price:

  • Tokyo’s 23 wards: 69,560,000 Yen (+11.3% from Feb. 2016)
  • Western Tokyo: 52,800,000 Yen (-19.9%)
  • Kanagawa Prefecture: 48,750,000 Yen (-6.3%)
  • Saitama Prefecture: 39,640,000 Yen (-19.0%)
  • Chiba Prefecture: 38,800,000 Yen (-4.6%)

 

Average sale price per square meter:

  • Tokyo’s 23 wards: 1,066,000 Yen (+13.5%)
  • Western Tokyo: 765,000 Yen (-16.9%)
  • Kanagawa Prefecture: 684,000 Yen (-8.3%)
  • Saitama Prefecture: 578,000 Yen (-13.3%)
  • Chiba Prefecture: 527,000 Yen (-1.1%)

 

The Institute is expecting 3,000 new apartments to be released for sale in March (2016 = 2,693; 2015 = 4,457; 2014 = 4,641; 2013 = 5,139).

Sources:
The Real Estate Economic Institute, March 15, 2017.
NHK, March 15, 2017.