REINS, which collects sales data reported to their database used by agents across Japan, has published some interesting charts showing movements in the existing apartment market in greater Tokyo between July 2010 and June 2021. This may be useful to readers new to researching the real estate market in Tokyo.
The chart below shows the average sale price per square meter of an existing apartment. The market bottomed out in 2012, as anyone in the industry can attest to. Since then, the average price has climbed by over 50%. This is just an average, there are properties that have outperformed or underperformed depending on the location, and type of property.
Remaining inventory has also been on a downwards trend. This trend started before the coronavirus pandemic but was accelerated as transactions hit record highs. Despite prices and transactions at high levels, fewer and fewer owners are choosing to list their properties. Some suggest this may be due to not wanting to go through the process of open houses and moving in the midst of a pandemic. Even selling would mean having to go through the same trouble of finding a new home to purchase – not an easy task with less inventory available.
It’s a similar story for detached houses, but perhaps with an even more noticeable drop in inventory.
- Greater Tokyo: Tokyo, Kanagawa, Chiba, Saitama Prefectures.
- Existing apartment: An apartment that is not brand-new. Typically offered on the resale market. For US-language readers, apartments in this context refers to condominiums.
Source: REINS, July 19, 2021.
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