According to the Real Estate Economic Institute, 2,110 brand new apartments were released for sale in greater Tokyo in August, down 50.0% from the previous month and down 49.1% from last year. This is the 7th month in a row to see a year-on-year drop in supply.

1,469 apartments were sold, making the contract rate 69.6%. This is down 14.1 points from the previous month and down 11.9 points from last year. This is the first time the contract rate has fallen below 70% in 19 months. A contract rate over 70% usually indicates positive market conditions.

The average new apartment price was 56,850,000 Yen, up 2.8% from the previous month and up 18.5% from last year.

The average price per square meter was 775,000 Yen, up 0.5% from the previous month and up 14.5% from last year.

212 apartments in high-rise buildings (over 20-storeys) were offered for sale, down 86.2% from the previous month and down 78.6% from last year. The contract rate was 50.9%, down 42.6 points from the previous month and down 34.3 points from last year.

Approximately 3,000 apartments are expected to be released for sale in September, about half the number supplied in September 2013.

The following buildings saw same-day sellouts* in August:

  • Pressance Loger Higashi Kanda, Chiyoda-ku, Tokyo: 15 apartments sold; average price of 44,990,000 Yen.
  • Viequ Court Oizumi Gakuen Shiki Garden, Nerima-ku, Tokyo: 13 apartments sold; average price of 54,750,000 Yen.

*Same-day sellouts occur when all of the apartments released for sale in a particular sales campaign receive purchase applications. As many developers release apartments for sale in stages, it does not necessarily mean that all apartments in the building have sold.

Tokyo Metropolitan Area Sales

1,012 apartments were released for sale in Tokyo’s 23-ku, down 53.9% from the previous month and down 49.9% from last year. 736 apartments were sold, making the contract rate 72.7%.

The average new apartment price was 71,820,000 Yen, up 15% from the previous month and up 26.0% from last year. The average price per square meter was 990,000 Yen, up 11.1% from the previous month and up 21.2% from last year.

No. of sales by apartment type in Tokyo’s 23-ku:

  • Studio: 0
  • 1-Bedroom: 36 (81.8% contract rate)
  • 2-Bedroom: 131 (72.0% contract rate)
  • 3-Bedroom: 551 (73.2% contract rate)
  • 4-Bedroom: 16 (51.6% contract rate)

Average total sale price:

  • Tokyo 23-ku: 71,820,000 Yen (+26.0% from August 2013)
  • Western Tokyo: 46,820,000 Yen (+10.3%)
  • Kanagawa Prefecture: 46,100,000 Yen (+14.4%)
  • Saitama Prefecture: 36,600,000 Yen (+0.8%)
  • Chiba Prefecture: 41,520,000 Yen (+14.5%)

Average sale price per sqm:

  • Tokyo 23-ku: 990,000 Yen (+21.2%)
  • Western Tokyo: 630,000 Yen (+7.7%)
  • Kanagawa Prefecture: 623,000 Yen (+11.1%)
  • Saitama Prefecture: 494,000 Yen (-3.5%)
  • Chiba Prefecture: 555,000 Yen (+13.0%)

Sources:
Real Estate Economic Institute, September 16, 2014.
The Asahi Shimbun, September 16, 2014.

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