Nationwide supply of new apartments drops to 44-year low

The supply of brand new apartments released for sale across Japan in 2020 hit the lowest level since 1976. According to the Real Estate Economic Institute, a total of 59,907 apartments were released for sale, down 15.2% from 2019.

In 1976 the supply was 49,955 units. A record high of 188,343 units was seen in 1994.

Greater Tokyo saw supply drop 12.8% to 27,228 units, while the Kinki region saw supply drop 15.8% to 15,195 units. In Tokyo’s 23 wards, supply dropped 20.6% from 2019 to 10,911 units.

The average price of a brand new apartment nationwide was 49,710,000 Yen, up 3.8% from 2019. The average price per square meter was 758,000 Yen, up 4.4% from 2019. This is the 8th year in a row to see a year-on-year increase in the price per square meter, and the 4th year in a row to reach a new record high.

The average price across greater Tokyo increased by 1.7% from 2019 to 60,830,000 Yen. This is only the second time that the average price has exceeded 60 million Yen. The first was in 1990 when the average reached 61,230,000 Yen. The average price per square meter had increased by 5.2% from 2019 to 925,000 Yen. The Institute is expecting prices to remain high due to high construction costs and strong competition for development sites in popular areas.

Supply in 2021 is forecast to reach 69,000 units, up 15.2% from 2020.

Source: The Real Estate Economic Institute, February 24, 2021.

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