The total number of brand-new condos supplied for sale across Japan in 2019 reached the lowest level since 1976. Supply dropped by 12.0% from the previous year to 70,660 units. The greater Tokyo region saw a 15.9% drop, while the Kinki region (which includes Osaka) saw a 13.9% drop. In 1994, annual supply peaked at 188,343 units.
The average apartment price increased by 0.6% to 47,870,000 Yen, while the average price per square meter increased by 1.8% to 726,000 Yen.
High land values, material prices and a shortage of labour have been a major contributing force to the current high apartment prices. As high prices continue to push consumers away from new construction and into the second-hand market, developers are limiting new supply in order to meet a shrinking market for new housing.
In 2020, 70,000 new condos are expected to be released for sale.
Source: The Real Estate Economic Institute, February 22, 2020.
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