The average price of a brand-new apartment across greater Tokyo in April reached 77,640,000 Yen, a 24.9% increase from last year and the second-highest price seen since the asset bubble era of the late 1980s ~ early 1990s.
The average was pulled up by the release of several projects in Tokyo where average apartment prices exceeded 200 million Yen, and some large-scale high-rise residences.
According to the Real Estate Economic Institute compiling the data, demand from buyers has remained strong since the second half of 2020, supporting high property prices.
The average price per square meter was 1,125,000 Yen, up 10.3% from last year. A total of 2,089 new apartments were released for sale, up 204.5% from last year. This comes as no surprise since sales offices and model rooms were closed in April and May of 2020 during the first pandemic-related state of emergency. Despite the Tokyo region being in a third state of emergency this year, the real estate industry has not taken the same restricted approach it did 12 months ago.
The contract ratio for the month was 73.6%, above the 70% line said to indicate healthy market conditions. Unsold inventory was 7,017 units, down from 7,795 seen in April 2020.
In Tokyo’s 23 wards a total of 1,068 new apartments were released for sale. The average apartment price was 101,800,000 Yen, up 43.0% from last year. The average price per square meter was 1,497,000 Yen, up 29.5% from last year.
High-end sales have been performing well in Tokyo with a contract ratio of 87.2% for apartments priced over 100 million Yen. For the 300 million Yen + price range the contract ratio was 94.1%.
A total of 2,500 new apartments are expected to be released across greater Tokyo in May (2020 = 393 units; 2019 = 2,206 units; 2018 = 2,462 units; 2017 = 2,603 units).
Source: The Real Estate Economic Institute, May 20, 2021.
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