New apartment supply in 2019 reaches lowest level in 27 years

The Court Jingu-Gaien was home to the expensive apartment in Tokyo in 2019.

In 2019 a total of 31,238 brand-new apartments were released for sale across greater Tokyo, down 15.9% from 2018 and the first time in three years to see an annual drop. Supply has dropped to a third of the level seen in 2000.

Tokyo’s 23 wards saw a 13.9% drop, while Kanagawa saw supply fall by 12.5%. 

According to the Real Estate Economic Institute, the average price across the region was 59,800,000 Yen, up 1.9% from 2018. This is the highest price seen since 1990 when the average was 61,230,000 Yen. The average price per square meter was 879,000 Yen. This is the 7th year in a row to record a year-on-year increase. 

 In Tokyo’s 23 wards, the average price was 72,860,000 Yen, up 2.0% from the previous year. The average price per square meter was 1,123,000 Yen, down 1.2% from the previous year.

The supply of apartments priced over 100 million Yen increased by 3.7% from 2018 to 1,866 units, representing 6% of the total supply. This number is still lower than the peak of 3,079 units seen in 1990 during the asset bubble. The most expensive apartment released for sale was a 267.46 sqm (2,878 sq.ft) apartment in The Court Jingu-Gaien – a 23-story condominium under construction near the new Olympic Stadium. 

The same-month contract ratio for the year averaged 62.6% up 0.5 points from 2018, and the fourth year to remain in the 60% range. 

Unsold inventory at the end of December was 9,095 units, down 457 units from 2018.

The Institute expects 32,000 new apartments to be supplied across greater Tokyo in 2020. 

Source: The Real Estate Economic Institute, January 22, 2020.

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