Tokyo apartment transactions drop 38% in May

The number of second-hand apartments reported to have sold across greater Tokyo in May dropped 38.5% from last year to 1,692 units. With the state of emergency continuing into May, the temporary closure of real estate brokerages and general restraint from consumers saw a slowdown in activity. The drop is less severe than it was in April, which recorded a 52.6% year-on-year drop in transactions.

In Tokyo’s metropolitan area, transactions were down 37.6% from last year to 882 units. The average sale price was 41,640,000 Yen, up 1.1% from last year. The average price per square meter was 705,700 Yen, up 2.5% from last year. New listings for the month were down 11.0% from last year. This is the 9th month in a row to see a drop in listings. Remaining inventory dropped for the 6th month in a row with a 4.0% drop in May.

For other prefectures within greater Tokyo, apartment prices are not faring as well. In Chiba, the average sale price dropped for the third month in a row to 18,290,000 Yen – a 10.0% drop from last year, while the price per square meter saw a 8.4% decline to 253,800 Yen. Kanagawa saw a 40.2% drop in transactions, while sale prices decreased for the third month in a row. Saitama saw the sale price drop 5.1% to 20,980,000 Yen – the second month in a row to see a decline. The average price per square meter dropped 3.6% to 313,200 Yen. Chiba, Kanagawa and Saitama have all seen remaining inventory increase. 

In central Tokyo’s 3 wards of Chiyoda, Chuo and Minato, apartment transactions dropped 35.0% from last year to 104 sales. The average sale price was 62,080,000 Yen, up 6.5% from last year. The average price per square meter was 1,104,100 Yen, up 1.2% from last year. New listings are down 16.0% from last year. This is the 8th month in a row to see a decline. Remaining inventory dropped for the 6th month in a row with a 8.7% year-on-year drop in May.

Transactions in Yokohama City dropped 47.7% in May to 172 units. The average sale price dropped 6.9% to 28,160,000 Yen, while the average price per square meter was down 4.8% to 420,400 Yen. Remaining inventory in Yokohama has seen a year-on-year increase for the past 35 consecutive months and is up 26.3% from June 2017. Neighboring Kawasaki City saw a 7.6% drop in both total sale price and price per square meter. 

Source: REINS, June 10, 2020.

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