Japan’s high-rise apartment market from 2020 to 2024 onwards
There are currently 103,100 apartments in 258 high-rise buildings planned for completion across Japan from 2020 onwards, however, the coronavirus pandemic and nationwide state of emergency declared in April 2020 may see some construction projects delayed as a result. This is an increase of 8,009 apartments and 27 buildings from the previous report issued by the Real Estate Economic Institute in March 2019.
Tokyo apartment sales drop by over 50% as pandemic hits buyer sentiment
Reported sales of existing apartments across Tokyo’s 23 wards have sunk to record lows this month as the coronavirus panic and state of emergency scares buyers from making big purchases.
New apartment supply drops 35.8% in March
According to the Real Estate Economic Institute, 2,142 brand-new apartments were released for sale across greater Tokyo in March, down 35.8% from last year. This is the lowest level seen for the month of March since 1992.
A total of 1,500 apartments sold within the first month of sales, resulting in a contract ratio of 70.0% - a 2.2 point decrease from last year.
Tokyo office vacancy rate increases for first time in 9 months
In March, the office vacancy rate across Tokyo’s central five business districts increased for the first time in 9 months. The vacancy rate reported by Miki Shoji was 1.50%, up 0.01 points from the previous month, but down 0.28 points from last year.
Tokyo secondhand apartment prices see first drop in 15 months
According to REINS, 3,642 second-hand apartments were reported to have sold across greater Tokyo in March, down 2.9% from the previous month and down 11.5% from last year. The average sale price was 34,890,000 Yen, down 0.03% from last year. The average price per square meter was 540,500 Yen, up 0.2% from last year.
Sales in Harumi Flag on hold
On March 30, Jiji Press reported that off-the-plan sales in Harumi Flag have been temporarily suspended and the sales showroom closed. The large-scale condo complex on a manmade island in Tokyo Bay was initially planned to be used as the Athletes Village for the 2020 Olympics, but the postponement of the games has thrown a wrench into the scheduling of the post-Olympic refurbishment of the apartments.
Kamiyacho Trust Tower reaches completion
The 180-meter, 38-story Kamiyacho Trust Tower building reached completion on March 16. This high-rise mixed-use tower forms part of the 1.6 hectare Tokyo World Gate complex in Tokyo’s Toranomon district.