New apartment supply in February hits 45-year low

The number of brand-new apartments released for sale across greater Tokyo reached the lowest level seen for the month of February since 1975. 

According to the Real Estate Economic Institute, February’s figures were not the direct result of the recent worldwide outbreak of the novel coronavirus. However, should economic conditions and consumer outlook worsen as a result of the unprecedented global slowdown, it is likely that Japan’s developers will continue to limit the supply of new apartments in the coming months.

A total of 1,488 new apartments were released for sale in the month, down 35.7% from February 2019. The average apartment price was 65,360,000 Yen, up 3.9% from last year and the second month in a row to see an increase. The average price per square meter was 974,000 Yen, up 6.9% from last year.

The same-month contract ratio across greater Tokyo was 59.3%, down 6.2 points from last year and below the 70% line said to indicate healthy market conditions. 

Within Tokyo’s 23 wards, the average apartment price was 80,850,000 Yen, up 2.6% from last year. The average price per square meter was 1,245,000, up 5.2% from last year. The contract ratio was 53.8%. For apartments priced over 100 million Yen the contract ratio was 44.8%.

Sources:
The Real Estate Economic Institute, March 17, 2020.
NHK, March 17, 2020.
The Nikkei Shimbun, March 17, 2020.

 624 total views,  99 views today