New apartment price in greater Tokyo hits 30-year high in 2020
The number of brand-new apartments released for sale across greater Tokyo in 2020 hit the lowest level in 28 years after the coronavirus pandemic saw showrooms shuttered and developers delay sales. A total of 27,228 apartments went on the market, down 12.8% from 2019. Sales are expected to recover in 2021 with 32,000 units forecast to be supplied.
Tokyo apartment sale prices increase for 8th year in a row
In 2020 the average sale price of an existing apartment across greater Tokyo saw a year-on-year increase for the 8th consecutive year. According to REINS, the average sale price was 551,700 Yen/sqm, up 3.2% from 2019. Sale prices have increased by 44.5% over the past 8 years.
Tokyo apartment prices from 1992 to 2020
I want to share an interesting chart below showing the change in existing (not brand new) apartment prices from 1992 to 2020.
Central Tokyo apartment sale prices reach new record high in December
According to REINS, 2,533 secondhand apartments were reported to have sold across greater Tokyo in December, down 9.9% from 2019. The average sale price was 37,390,000 Yen, down 0.5% from the previous month but up 5.3% from the previous year. The average price per square meter was 575,300 Yen, up 1.1% from the previous month and up 4.8% from the previous year. This is the 8th month in a row to record a year-on-year increase.
Tokyo apartment discounts in November
The median discount on an existing apartment sold in Tokyo’s 23 wards was just 1.04% in November. This is a 0.7 point drop from November 2019. 43% of transactions sold at their full asking price, up from a 31% share in 2019.
A forecast of new apartment prices between 2020 and 2025
on November 26, the Japan Real Estate Institute (JREI) issued their most recent medium-term forecast for new apartment prices in Tokyo’s 23 wards. In 2020, the average price is forecast to be 1,071,000 Yen per square meter (approx. US$956/sq.ft). This is a slightly higher revision from their earlier forecast issued last year.
Tokyo apartment discounts in October
October was an outstanding month for existing apartment sales, with transactions in the Tokyo metropolitan area up 10.7% from September and up 33.5% from October 2019. Across greater Tokyo, transactions hit the highest level since data-keeping began in 1990.
What about discounts?