Apartment transactions in January reach all-time high

The second state of emergency issued on January 7 wasn’t enough to slow buying activity this time around, with REINS reporting that 3,480 second-hand apartments were sold across greater Tokyo in January, up 37.3% from the previous month and up 29.9% from January 2020. This is the highest number of transactions seen for the month of January since REINS began reporting data in May 1990.

The average sale price was 37,720,000 Yen, up 0.9% from the previous month and up 2.7% from last year. This is the 8th month in a row to record a year-on-year increase.

The average price per square meter was 575,700 Yen, up 0.1% from the previous month and up 2.3% from last year. This is the 9th month in a row to see a year-on-year increase. The average apartment size was 65.52 sqm, 0.28 sqm larger than last year, and the average building age was 22.05 years.

In the Tokyo metropolitan area 1,775 apartments were reported to have sold, up 38.7% from the previous month and up 26.2% from last year. The average sale price was 47,400,000 Yen, down 0.5% from the previous month but up 2.5% from last year. The average price per square meter was 771,000 Yen, down 0.1% from the previous month but up 3.1% from last year. The average apartment size was 61.47 sqm, 0.32 sqm smaller than last year, and the average building age was 21.05 years.

New listings continued to decline, with a year-on-year drop of 22.3% across greater Tokyo. This is the 17th month in a row to see a year-on-year fall in the number of new listings. It was a similar story in the Tokyo metropolitan area with new listings down 22.7% from January 2020.

Remaining inventory also continues to see double-digit drops with greater Tokyo recording a 22.2% year-on-year drop in inventory in January, with the Tokyo metropolitan area seeing a 22.0% drop.

Central Tokyo

In central Tokyo’s 3 wards of Chiyoda, Chuo, and Minato, 200 apartments were reported to have sold, up 29.0% from the previous month and up 19.8% from January 2020. The average sale price was 80,030,000 Yen, up 5.4% from the previous month and up 17.0% from January 2020. The average price per square meter reached 1,320,900 Yen, up 2.4% from the previous month and up 15.1% from January 2020. This is the highest sale price per square meter on record. The average apartment size was 60.59 sqm, 0.98 sqm larger than last year, while the average building age was 18.43 years.

New listings dropped 12.5% from January 2020. This is the 16th month in a row to see a drop in listings. Remaining inventory shrunk for the 14th month in a row with a year-on-year drop of 18.3%. Remaining inventory is now sitting at the lowest level since August 2015.

Source: REINS, February 10, 2021.

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