New apartment prices in Tokyo up 10.3%

According to the Real Estate Economic Institute, 3,337 brand new apartments were released for sale in greater Tokyo in November, up 6.8% from the previous month but down 33.3% from last year. This is the 10th month in a row to see a year-on-year decline. It is also lower than the Institute’s forecast of 4,000 apartments. This is the lowest level for November since 2008 and is thought to be due to developers postponing sales in major projects until the new year.

2,617 apartments were sold, making the contract rate 78.4%, up 15.1 points from the previous month but down 1.2 points from last year.

The average new apartment price was 52,240,000 Yen, up 14.6% from the previous month and up 5.2% from last year. The average price per square meter was 737,000 Yen, up 15.5% from the previous month and up 6.2% from last year.

660 apartments in high-rise buildings (over 20-storeys) were offered for sale, up 89.7% from the previous month but down 36.7% from last year. The contract rate was 85.5%, up 24 points from the previous month and up 3.8 points from last year.

The Institute is expecting 7,000 apartments to be released for sale in December.

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

  • The Parkhouse Shinagawa Ebaramachi, Tokyo: 47 apartments sold; average price of 46,890,000 Yen.
  • Brillia Gakugei Daigaku, Meguro-ku, Tokyo: 29 apartments sold; average price of 73,340,000 Yen.
  • Grand Maison Sengawa, Chofu City: 80 apartments sold; average price of 45,250,000 Yen.

[Left] The Parkhouse Shinagawa Ebaramachi; [Center] Brillia Gakugei Daigaku; [Right] Grand Maison Sengawa.
*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

1,638 apartments were released for sale in Tokyo’s 23-ku, up 18.6% from the previous month but down 36.6% from last year. 1,309 apartments were sold, making the contract rate 79.9%.

The average new apartment price was 63,880,000 Yen, up 19.7% from the previous month and up 11.0% from last year. The average price per square meter was 942,000 Yen, up 21.2% from the previous month and up 10.3% from last year.

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

Studio 7 (100% contract rate)
1-Bedroom 89 (82.2% contract rate)
2-Bedroom 274 (81.5% contract rate)
3-Bedroom 901 (79.3% contract rate)
4-Bedroom 32 (71.1% contract rate)

Average sale price by area:

Tokyo 23-ku 63,880,000 Yen (+11.0% from November 2013)
Western Tokyo 46,260,000 Yen (+13.2%)
Kanagawa Prefecture 40,920,000 yen (-9.2%)
Saitama Prefecture 38,570,000 Yen (+12.3%)
Chiba Prefecture 40,140,000 Yen (+1.7%)

 

Average sale price per sqm:

Tokyo 23-ku 942,000 Yen (+10.3% from November 2013)
Western Tokyo 617,000 Yen (+12.0%)
Kanagawa Prefecture 568,000 Yen (-1.0%)
Saitama Prefecture 540,000 Yen (+13.0%)
Chiba Prefecture 502,000 Yen (-4.0%)

 

Sources:
The Real Estate Economic Institute, December 15, 2014.
The Nikkei Shimbun, December 15, 2014.

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