Wondering why it’s so tough to find a large-ish apartment in Tokyo? They’re not being built. At least not in any discernible quantity.
According to Tokyo Kantei, just 1.1% of the new condominiums supplied in the greater Tokyo area in 2022 were over 100 m2 (1,076 sq.ft) in size. This is the lowest level seen since 2017. The report doesn’t get into the specifics for apartments in the 150 or 200 m2 range, and that might be due to the sheer scarcity of supply and lack of public data in this upper end of the market.
What about the resale market? It’s slim pickings there, as well. The share of 100 m2+ apartments listed for resale in 2022 hit the lowest level since 2014, with a 2.9% share. This is down from a 3.4% share in 2021 and a 4.1% share in 2020. It’s the lowest share in the past six years. 87% of listings were under 80 m2 in size. With such limited number of new apartments being supplied in this size range, it is difficult to imagine any jump in the supply on the resale market down the track.
Our buyers typically request apartments between 150 ~ 300 m2 in size but are often unaware of just how minuscule the availability truly is. In a city where the typical apartment size is around 70 sqm for three bedrooms, anything over 100 m2 is considered luxurious. It is also a sector that is largely ignored by developers.
In recent years, however, some developers have caught on to the demand for larger, luxurious residences, and have built some truly high-end apartments. The supply is still very limited, and has been met with enough demand to make many of these projects sell out.
Source: Tokyo Kantei, January 31, 2023.
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