New apartment price across Japan reaches record high in 2018

According to the Real Estate Economic Institute, a total of 80,256 brand-new apartments were released for sale across Japan in 2018, up 3.7% from 2017, and the first time since 2014 to see supply exceed 80,000 units. Greater Tokyo saw a 3.4% increase in supply, while the Kinki, Chubu and Tokai regions saw increases of over 7%. Another 80,000 new apartments are expected to be supplied for sale in 2019. This is still below the recent peak of 105,282 units supplied in 2013.

37,132 new apartments were released for sale across greater Tokyo, while the Kinki region, which includes Osaka, saw 20,958 new apartments.

The average price nationwide was 47,590,000 Yen, up 0.4% from 2017, and the highest price in the history of reporting. The average price per square meter was 713,000 Yen, up 2.4% from the previous year. 

Data for January 2019:

A total of 1,900 brand-new apartments were released for sale across greater Tokyo in January, down 74.5% from December and down 1.8% from January 2018. The drop in supply is attributed to developers focusing on selling existing inventory before releasing more apartments. 

The contract rate for the month was 67.5%, up 18.1 points from the previous month and up 2.3 points from last year. Chiba Prefecture saw a contract rate of 78.6%, while Tokyo’s 23 wards recorded a 58.7% rate. 

The average price of a new apartment was 56,530,000 Yen, up 6.8% from last year. The average price per square meter was 813,000 Yen, up 3.3% from last year. 

Existing inventory was 9,040 units as at the end of January, down 512 from the end of December but up from 6,875 units as at the end of January 2018.

The average new apartment price in Tokyo’s 23 wards was 75,770,000 Yen, up 22.3% from last year, while the average price per square meter increased by 22.0% over 12 months to 1,198,000 Yen. New apartment prices per square meter are now up 41.3% since January 2015.

Source: The Real Estate Economic Institute, February 19, 2019.

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