According to the Real Estate Economic Institute, the supply of new apartments across greater Tokyo in the first half of 2020 (counted from April to September) dropped below 10,000 units for the first time since record-keeping began in 1973. A total of 8,851 new apartments were released for sale, down 26.2% from the first half of 2019.

The temporary closure of developer show rooms during April and May in response to the State of Emergency was one of the leading causes for the drop in supply. Developers continue to impose limitations on the numbers of visitors to show rooms in order to meet health and safety guidelines. Buyer activity has also started to return in recent months.

The average apartment price was 60,850,000 Yen, up 1.3% from 2019. In Tokyo’s 23 wards, the average price increased by 4.4% to 74,210,000 Yen, while the average price per square meter increased by 9.7% to 1,219,000 Yen. The continued high cost of construction and limited supply has kept apartment prices at a high level.

The contract ratio was 70.2%, up 5.6 points from 2019 and just above the 70% line said to indicate healthy market conditions. The average apartment size was 65.37 sqm (703 sq.ft), 1.9% smaller than in 2019. In Tokyo’s 23 wards, the average apartment size was 60.86 sqm, 4.9% smaller than last year.

Source: The Real Estate Economic Institute, October 20, 2020.

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