According to the Real Estate Economic Institute, 4,222 brand new apartments were released for sale in greater Tokyo in July, up 20.5% from the previous month but down 20.4% from last year. This is the 6th month in a row to see a year-on-year decline in supply. Developers are taking caution to limit supply amidst a drop in demand following the increase in consumption tax and a steep rise in construction costs. According to Nomura Securities, the average cost of construction in May 2014 was 187,000 Yen/sqm - the highest level seen since 1993.
3,532 apartments were sold, making the contract rate 83.6%. This is 7.1 points higher than the previous month and 2.1 points higher than last year.
The average new apartment price was 55,320,000 Yen, up 14.5% from the previous month and up 7.9% from last year. This is the first time that prices have exceeded 55 million Yen since November 1992.
The average price per square meter was 771,000 Yen, up 12.9% from the previous month and up 6.1% from last year.
1,533 apartments in 18 high-rise buildings (over 20-storeys) were offered for sale, up 241% from the previous month but down 1.8% from last year. The contract rate was 93.5%.
Approximately 2,500 new apartments are expected to be released for sale in August. The institute has revised its estimated downwards and now expects between 46,000 ~ 48,000 apartments to be supplied in 2014.