New apartment prices in greater Tokyo increase for 6th month in a row

According to the Real Estate Economic Institute, 2,978 brand new apartments were released for sale across greater Tokyo in September, up 41.7% from the previous month but down 13.0% from last year. Back in 2013, as many as 5,970 new apartments were released for sale in the month of September.

The average sale price was 58,240,000 Yen, up 0.5% from the previous month and up 4.4% from last year. The average price per square meter was 846,000 Yen, down 2.9% from the previous month but up 7.6% from last year. This is the sixth month in a row to record a year-on-year increase.

The contract ratio across greater Tokyo was 64.9%, down 3.3 points from the previous month and down 7.1 points from last year. This is below the 70.0% line said to indicate healthy market conditions.

A total of 340 apartments in 20 high-rise buildings (over 20 storeys) were offered for sale, with a contract ratio of 60.6%, down 19.7 points from last year.

Tokyo metropolitan area

In the Tokyo metropolitan area, 1,167 new apartments were offered for sale, up 9.3% from the previous month but down 8.3% from last year. The average sale price was 73,640,000 Yen, up 6.0% from the previous month and up 7.5% from last year. The average price per square meter was 1,102,000 Yen, down 0.5% from the previous month but up 11.8% from last year. This is the 3rd month in a row to see average sale prices above 1,100,000 Yen/sqm.

The contract ratio was 65.9%.

The Institute is expecting 3,500 new apartments to be released for sale in October (2016 = 2,903; 2015 = 3,125; 2014 = 3,125; 2013 = 3,506).

Source: The Real Estate Economic Institute, October 16, 2017.