Apartment transactions record biggest drop in 30+ years

As expected, transactions of second-hand apartments for the month of April have plummeted as buying activity sours during the coronavirus pandemic and state of emergency. A total of 1,629 apartments were reported to have sold across greater Tokyo in April, down 55.3% from the previous month and down 52.6% from last year. This is the biggest decline seen since REINS began recording data in May 1990.

Tokyo is not special in this regard, with other international cities seeing similar falls.

In Tokyo’s metropolitan area, 812 apartments were sold, down 57.9% from the previous month and down 55.3% from last year. The average sale price was 41,290,000 Yen, down 4.5% from March and down 3.4% from last year. The average price per square meter was 701,800 Yen, down 1.2% from March and down 0.9% from last year. 

New listings dropped 20.5%. This is the 8th month in a row to see a year-on-year drop in new listings. Unsold inventory was down for the 5th month in a row with a 4.9% drop in April.

In central Tokyo’s three wards of Chiyoda, Chuo and Minato, there were just 98 reported transactions in April. This is a 53.8% drop from March and a 54.8% drop from last year. The average sale price was 66,430,000 Yen, down 2.0% from the previous month but up 1.6% from last year. The average price per square meter was 1,155,200 Yen, down 2.1% from March and down 2.5% from last year. The average apartment size was 57.51 sqm (619 sq.ft) and the average building age was 19.06 years.

New listings in central Tokyo dropped 26.9%. This is the 7th month in a row to see a decline, and the 4th month in a row with a double-digit drop. The average price of a new listing was 1,374,800 Yen/sqm, up 1.8% from last year, while the average apartment size was just 54.86 sqm (590 sq.ft). Remaining inventory dropped for the 5th month in a row.

Data: REINS, May 15, 2020.

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