New apartment sales drop 82.2% in May

The number of new apartments released for sale across greater Tokyo in May dropped 82.2% from last year to just 393 units. This is the lowest volume since the Real Estate Economic Institute began reporting data in 1973. Showrooms remained closed for most of the month due to the nationwide state of emergency. The contract ratio was 72.3%, up 12.3 points from last year but down 6.6 points from April.

The average sale price was 64,850,000 Yen, up 6.4% from last year. The average price per square meter was 1,084,000 Yen, up 21.3% from last year. The average sale price in Tokyo’s 23 wards was 78,250,000 Yen, down 1.2% from last year, while the average price per square meter was 1,414,000 yen, up 16.9% from last year. The remaining prefectures of Kanagawa, Saitama and Chiba all saw a year-on-year drop in sale prices.

Almost 60% of the apartments released for sale were located within Tokyo’s 23 wards. For apartments priced over 100 million Yen the contract ratio was 88.6%. 

The Institute is forecasting 1,000 new apartments to be released for sale in greater Tokyo in June. This would be less than half of the 2,259 units released for sale in June 2019.

In the Kinki region, which includes Osaka, and Kyoto, 214 new apartments were released for sale, down 84.6% from last year and the lowest number seen since 1991. The contract ratio was 50.0%, down 17.7 points from last year and down 27.9 points from April. This is the lowest contract rate since March 1992 when it reached 35.8%. The average sale price was 42,860,000 Yen, up 3.2% from last year. The average price per square meter was 616,000 Yen, down 4.2% from last year. Over 60% of showrooms had been closed until the state of emergency was lifted.

Source: The Real Estate Economic Institute, June 18, 2020.

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