Tokyo’s new apartment supply in March up 26.6%

According to the Real Estate Economic Institute, 3,408 new apartments were released for sale across greater Tokyo in March, up 47.5% from the previous month and up 26.6% from last year.

2,255 apartments were sold, resulting in a contract ratio of 66.2%, down 2.2 points from the previous month and down 1.4 points from last year. 187 apartments in high-rise buildings (over 20 stories) were released for sale, down 41.0% from last year. The contract ratio was 62.6%, down 1.8 points from last year.

Unsold inventory as at the end of March was 6,749 apartments, up 155 units from the previous month and up 710 units from March 2016.

The average price of a new apartment across greater Tokyo was 55,880,000 Yen, down 3.5% from the previous month and down 0.9% from last year. The average price per square meter was 790,000 Yen, down 7.3% from the previous month and down 1.5% from last year.

The average size of a new apartment sold during March was 70.75 sqm (761 sq ft).

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

  • Park City Chuo Minato The Residence, Chuo: 5 apartments sold; average price of 74,600,000 Yen.
  • Brillia Takanawa The House, Minato: 7 apartments sold; average price of 146,140,000 Yen.
  • The Palms Yutenji Master Place, Setagaya: 20 apartments sold; average price of 82,660,000 Yen.
  • Grand Maison Moto-Sumiyoshi, Kawasaki City: 18 apartments sold; average price of 63,040,000 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

1,369 new apartments were released for sale in the Tokyo metropolitan area, up 20.3% from the previous month and up 10.8% from last year. 1,008 apartments were sold, resulting in a contract ratio of 73.6%.

The average new apartment price was 66,280,000 Yen, down 4.7% from the previous month and down 3.0% from last year. The average price per square meter was 968,000 Yen, down 9.2% from the previous month and down 4.5% from last year.

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

Studio: 11 (57.8% contract ratio)
1-Bedroom: 54 (73.0%)
2-Bedroom: 125 (67.2%)
3-Bedroom: 727 (74.3%)
4-Bedroom: 86 (80.4%)

 

Average sale price:

Tokyo’s 23 wards: 66,280,000 Yen (-3.0% from Mar. 2016)
Western Tokyo: 51,210,000 Yen (+8.3%)
Kanagawa Prefecture: 52,940,000 Yen (+0.5%)
Saitama Prefecture: 45,590,000 Yen (+4.1%)
Chiba Prefecture: 39,020,000 Yen (+4.0%)

 

Average sale price per square meter:

Tokyo’s 23 wards 968,000 Yen (-4.5% from Mar. 2016)
Western Tokyo: 703,000 Yen (+11.4%)
Kanagawa Prefecture: 736,000 Yen (-1.5%)
Saitama Prefecture: 629,000 Yen (+3.8%)
Chiba Prefecture: 545,000 Yen (+7.9%)

 

The Institute is expecting 2,500 new apartments to be released for sale in April (2016 = 1,978; 2015 = 2,286; 2014 = 2,473; 2013 = 4,093).

Supply in 2016 hits 24 year low

In 2016, the total number of new apartments released for sale across greater Tokyo was 36,450 units, down 4.4% from 2015 and the lowest supply seen since 1992.

Source: The Real Estate Economic Institute, April 17, 2017.