New apartment contract ratio hits 10 year low in November

According to the Real Estate Economic Institute, a total of 3,461 brand new apartments were released for sale across greater Tokyo in November, up 21.7% from the previous month and up 2.8% from last year. 

The average sale price was 60,170,000 Yen, up 8.4% from last year. The average price per square meter was 897,000 Yen, up 7.4% from last year. 

The contract ratio was 53.9%, a 14.4 point drop from the previous month and a 14.0 point drop from last year. This is the lowest ratio seen since July 2008 when it reached 53.5%. A ratio of 70% is said to indicate a healthy balance between supply and demand for new construction. 

7,000 new apartments are expected to be released for sale in December.

TOKYO METROPOLITAN AREA

1,388 new apartments were released for sale in the Tokyo metropolitan area, down 5.1% from the previous month and down 13.4% from last year. The average sale price was 76,520,000 Yen, up 22.3% from last year. The average price per square meter was 1,237,000 Yen, up 23.3% from last year. This is the highest level seen since January 2017 when the average price reached a record high of 1,320,000 Yen/sqm. 

The contract ratio was 47.2%. 101 apartments priced over 100 million Yen were sold. 

Source: The Real Estate Economic Institute, December 17, 2018.