Average Sales Price of a New Apartment in Tokyo Falls for the First Time in 3 Months

The average sales price of a newly constructed apartment in greater Tokyo fell year-on-year for the first time in three months to ¥69,340,000 ($627,000 USD), dragged down by an 11.4% drop in the average sales prices of condominiums sold in the Tokyo 23 Wards. May sales results were a sharp reversal from April, when average sales prices in greater Tokyo jumped 24.9%.

A huge jump in supply was one of the main reasons for lower sales prices in the Tokyo 23 Wards. Developers released 2,578 newly constructed apartments for sale in May, a year-on-year increase of 556% and an increase of 23.4% compared to April. A plurality of new supply (about 47%) was to the Tokyo 23 Wards.

Despite the large increase in supply, total inventory of newly constructed apartments stood at 6,789 units as of the end of May, down 228 units compared to April. Supply has not fully recovered from the extremely low levels seen last June, when suppliers started severely cut back the release of new inventory due to the pandemic and first state-of-emergency.

In all other regions surveyed in greater Tokyo, average sales prices rose year-on-year, but because almost half of all apartments sold in greater Tokyo were located in the Tokyo 23 Wards, lower sales prices in the 23 Wards pulled down the overall average.

Last month’s sales numbers were released by the Real Estate Economic Institute’s (REEI) in its Greater Tokyo New Condominium market report for May. Greater Tokyo consists of the Tokyo 23 Wards, Tokyo western suburban cities, and the prefectures of Chiba, Saitama, and Kanagawa.

Here are the key takeaways from the May data:

  • As in April, the Tokyo western suburbs had the highest year-on-year increase in price, +26.9%, with an average sales price of ¥52,780,000 ($477,000), but this was a drop of 9.2% compared to last month.
  • Average sales prices, unsurprisingly, were highest in the Tokyo 23 Wards, coming in at ¥69,340,000 ($626,400), a year-on-year decrease of 11.4%.
  • The first month’s contract rate for greater Tokyo was 69.3% (down 3 points year-on-year and down 4.3 points compared to April). The contract rate is the number of units contracted for sale divided by the number of units offered for sale. A contract rate above 70% is said to indicate strong buyer interest relative to supply.

Average Sales Price of an Apartment in Greater Tokyo – By City & Prefecture

Here is the breakdown of average sales prices by area for May 2021 compared to April 2021 and year-on-year.

May 2021 – Average Sales Price in JPY Apr 2021 – Average Sales Price in JPY May 2021 v. Apr 2021
MoM % Change
May 2020 – Average Sales Price in JPY May 2021 v. May 2020
YoY % Change
Tokyo 23 Wards 69,340,000 101,800,000 -31.9% 78,250,000 -11.4%
Tokyo Western Suburbs 52,780,000 58,150,000 -9.2% 41,590,000 26.9%
Kanagawa 53,850,000 51,450,000 4.7% 50,640,000 6.3%
Saitama 46,820,000 52,250,000 -10.4% 36,110,000 29.7%
Chiba 43,990,000 45,580,000 -3.5% 38,800,000 13.4%
Greater Tokyo 59,080,000 77,640,000 -23.9% 64,850,000 -8.9%

Average sales prices by square meter

May 2021 – Average Sales Price
Per SQM in JPY
Apr 2021 – Average Sales Price
Per SQM in JPY
May 2021 v. Apr 2021
MoM % Change
May 2020 – Average Sales Price
Per SQM in JPY
May 2021 v. May 2020
YoY % Change
Tokyo 23 Wards 1,213,000 1,490,700 -37.5% 1,414,000 -14.2%
Tokyo Western Suburbs 813,000 817,000 48.5% 635,000 28.0%
Kanagawa 795,000 751,000 8.3% 725,000 9.7%
Saitama 675,000 770,000 -12.3% 662,000 2.0%
Chiba 601,000 616,000 -2.4% 558,000 7.7%
Greater Tokyo 932,000 1,125,000 -17.2% 1,084,000 -14.0%

 


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  • Real Estate Economic Institute, Greater Tokyo New Condominium Market Report for May 2021 (PDF in Japanese)
  • Real Estate Economic Institute, Greater Tokyo New Condominium Market Report for May 2020 (PDF in Japanese)
  • Real Estate Economic Institute, Greater Tokyo New Condominium Market Report for April 2021 (PDF in Japanese)

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