New apartment prices in Sendai now higher than the the peak of the bubble in 1991

According to advertising firm DG Communications, the average price of a brand new apartment in greater Sendai in 2013 was 35,599,000 Yen, up 7.3% from 2012. This is now 0.7% higher than the peak of 35,339,000 Yen seen in 1991 during Japan’s asset price bubble.

The average price per square meter was 468,200 Yen, up 9.0% from the previous year.

New apartment prices Sendai 1991 2013

The total supply of new apartments in 2013 was 1,265 units. The main driver behind the increase in price was the increase in construction costs as well as a number of luxury apartment sales. Supply has fallen by about 40% since 2008, and demand from residents relocating away from coastal areas has remained strong.

The average contract ratio for the first month of sales was 75.9%, up 3.7 points.

The average apartment size was 76.11 sqm (819 sqft), down 1.23 sqm from the previous year. 61.7% of apartments were 3-bedrooms, while 29.0% were 4-bedrooms.

The most expensive area was Aoba-ku in Sendai City which had an average new apartment price of 40,432,000 Yen, up 8.2% from 2012. Miyagino-ku saw the greatest increase as new apartment prices rose 24.8% to 34,045,000 Yen.

Source: Kahoku Shimbun, February 4, 2014.

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