New apartment supply forecast to rise by 4.4% in 2016
The supply of brand new apartments to be released for sale in the greater Tokyo area in 2016 is forecast to reach around 43,000 units, up 4.4% from 2015.
Japan’s consumption tax rate will be raised to 10% from its current level of 8% in April 2017. This is expected to lead to a rush in last-minute demand from buyers seeking to lock in the purchase price at the lower tax rates. The deadline to lock in a new apartment under the lower tax rate will be for contracts signed up until September 30, 2016.
According to the Real Estate Economic Institute, the construction scandal concerning falsified data about building foundations has had less of an effect that originally anticipated, and is not expected to impact on forecasts for 2016.Read more