Last year, the market for second-hand apartments in the greater Tokyo area saw discounts hit some of the lowest rates on average, while apartments sold in a shorter amount of time.
In the second half of 2021, the average time between listing and sale was just 2.89 months, down from a recent high of 4.18 months seen in the first half of 2020. At the same time, the average discount hit a record low of 4.55%. It had been averaging somewhere between 6 ~ 7% between late 2013 and 2020.
Since the second half of 2020, apartment buyers have been out in force seeking to upgrade their housing to something more comfortable. Inventory and new supply began to dwindle, making competition tight for buyers. Essentially it has been a strong seller’s market. Inventory only began to pick up again in the second half of 2021.
45% of apartments sell within 1 month of listing
Accordingly, in 2021, 45.8% of apartments sold within one month of listing (in 2020 the share was 35.1%). And, the average discount on apartments that sold in the first month was 2.41%. What’s more, 43% of those apartments sold at full ask.
A total of 69.1% of the apartments sold within three months of listing, up from a 55.4% share in 2020.
Source: Tokyo Kantei, July 28, 2022.
