Tokyo apartment discounts in May
The real estate market continued to stall in May as businesses remained shut and people stayed home. Transactions in Tokyo are still down considerably from last year although there has been some improvement from April, and activity is already starting to resume in early June. Discounts still remain limited in many cases as sellers hold firm.
Tokyo Apartment Sales in May
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of May 2020:
2020 Office supply in Tokyo reaches 2nd highest level in history
According to a report published by Mori Building on May 25, a total of 1.87 million square meters (approx. 20 million sq.ft) of new office space is expected to be supplied in Tokyo’s 23 wards in 2020. This is the second-highest level seen since the company began collecting data in 1987. Despite the large supply, most of the new office space is already leased.
Number of registered short-term accommodations drop for first time
The number of registered ‘minpaku’ short-term accommodation providers has dropped for the first time since the new system was introduced in June 2018. According to the Japan Tourism Agency there were a total of 21,176 registered properties across Japan as of May 11, down from 21,385 just one month earlier.
Nationwide average apartment price drops for first time since 2012
According to the Real Estate Transaction Promotion Center, the average sale price of an existing apartment sold across Japan in April was 25,400,000 Yen, down 9.03% from last year. The average sale price per square meter was 385,200 Yen, down 8.76% from 2019. This is the first time since September 2012 to see a year-on-year drop in prices.
New apartment sales in Tokyo reach 47-year low
According to the Real Estate Economic Institute, the number of new apartments released for sale across greater Tokyo in April reached the lowest level seen since the Institute began collecting data in 1973. As developers shuttered salesrooms following the declaration of the state of emergency in mid-April, new home sales have stalled. Just 686 apartments were released for sale, down 68.0% from the previous month and down 51.7% from last year. A new record low is expected in May with the Institute forecasting a supply of 500 apartments.
Apartment transactions record biggest drop in 30+ years
As expected, transactions of second-hand apartments for the month of April have plummeted as buying activity sours during the coronavirus pandemic and state of emergency. A total of 1,629 apartments were reported to have sold across greater Tokyo in April, down 55.3% from the previous month and down 52.6% from last year. This is the biggest decline seen since REINS began recording data in May 1990.