Apartment transactions drop in August as inventory remains low

Reported transactions of second-hand apartments across greater Tokyo dropped again in August, according to REINS. That may be a side effect of the low inventory levels and limited apartments being listed for sale each month.

In the Tokyo metropolitan area, a total of 1,275 apartments were reported to have sold, down 19.1% from last year. Kanagawa Prefecture saw an 11.9% drop, while Saitama saw transactions down 7.4%, and Chiba saw a 5.4% drop. The average sale price in Tokyo was 810,100 Yen, up 11.9% from last year.

Central Tokyo’s three wards of Chiyoda, Chuo, and Minato bucked the trend with transactions remaining at the same level from last year. The Shinjuku, Shibuya, Suginami, and Nakano group saw transactions up 0.5% from last year. Meanwhile, Shinagawa, Ota, Meguro, and Setagaya saw them drop 33.3%.

The average apartment sale price in the central 3 wards reached the second-highest level in history (a previous record was set this June), increasing by 8.9% from last year to 1,369,400 Yen/sqm. The average apartment size shrank by 9.6% to 55.26 sqm (595 sq.ft). New listings are down 6.2% from last year while remaining inventory was down 14.3%. This is the 21st month in a row to see a year-on-year drop in inventory levels. 

It was a similar story for detached house sales across greater Tokyo in August. In the Tokyo metropolitan area, transactions were down 2.4% from last year. In Chiba Prefecture they were down 19.4%. All districts saw double-digit drops in the number of new listings for the month. In Tokyo, there was an 18% drop from last year. Remaining inventory is also down by 30.7% across the greater Tokyo area. In Tokyo, inventory levels are down 28.7% from last year.

Source: REINS, September 10, 2021.

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