New apartment prices in Greater Tokyo drop 20% in January

According to the Real Estate Economic Institute, 1,934 brand new apartments were released for sale across greater Tokyo in January, down 70.2% from the previous month but up 39.7% from January 2017.

The average sale price was 52,930,000 Yen, down 23.4% from last year. The average price per square meter was 787,000 Yen, down 19.3% from last year. In January 2017, new apartment prices saw a steep jump from the year before, with prices rising by 24.1%. If several high-end projects are released onto the market it can pull up average prices for the month.

The contract ratio was 65.2%, up 3.6 points from last year. Remaining inventory was down 3.2% from the end of December.

TOKYO METROPOLITAN AREA

954 new apartments were offered in the Tokyo metropolitan area, down 53.1% from the previous month but up 38.7% from last year. The average sale price was 61,960,000 Yen, down 32.3% from last year. The average price per square meter was 982,000 Yen, down 25.6% from last year.

The contract ratio was 73.4%, above the 70% line said to indicate healthy market conditions. In Western Tokyo it was 50.4%, and 57.5% in Kanagawa Prefecture.

A total of 2,500 apartments are expected to be released for sale in February.

OSAKA REGION

In the Kinki region, the average price of a new apartment was 680,000 Yen/sqm, up 12.6% and the highest level recorded since 1991. The contract ratio was 78.1%, up 3.0 points from last year.

Source: The Real Estate Economic Institute, February 14, 2018.