How much does an apartment cost in Tokyo – November 2021 Update

The average sales price of a newly constructed apartment in the greater Tokyo region was ¥67,500,000 ($596,000 USD) in October. This was a year-on-year increase of 10.1% and up 2.5% compared to September.

The average sales price per square meter was ¥1,057,000 ($9,327 USD), up 10.9% year-on-year and the fourth consecutive month of year-on-year increases.

The greater Tokyo region consists of the Tokyo 23 Wards, the Tokyo western suburbs, and the prefectures of Kanagawa, Saitama, and Chiba.

Sales prices in the Tokyo 23 Wards fell 1.8% year-on-year in October, coming in at ¥84,550,000. This was a reversal from September when average sales prices jumped 24.3% year-on-year to ¥86,070,000.

Following the first COVID state-of-emergency, developers started pulling back on new supply starting in April and May last year. Through the rest of 2020, tight supply, along with ongoing historically low mortgage rates, continued to push prices up. Steady upward growth in average sales prices has been a conspicuous feature of the greater Tokyo new condo market.

Developers released a flood of inventory in the first half of 2021, up 77.3% year-on-year for the Tokyo capital region as a whole. Despite this, supply still lags demand. The average sales price on the capital region only fell 3.9% in the first six months of the year against the 77.3% increase in supply. Here is the breakdown by prefecture for the first half of 2021:

What we saw in October was a year-on-year decrease of 38.8% in new supply, with 2,055 newly constructed apartments coming onto the market. This was the second consecutive month of year-on-year decrease in supply. As noted above, the average sales price in the capital rose by over 10% despite the pullback in new inventory.

For the greater Tokyo region as a whole, the contract rate for October was 71.4%, up 1.0 point year-on-year and up 3.7 points versus September. 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.

Tokyo has seen a strong buyers market through most of 2021. The contract rates for March, April, May, June, July and August were 73.6%, 73.6%, 69.3%, 72.5%, 68.3%, and 73.0%, respectively. For the first six months of the year, the contract rate for the Tokyo capital region averaged 72.5%.

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

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

Source: Real Estate Economic Research Institute (不動産経済研究所)

Average Sales Price Per Square Meter of an Apartment in Tokyo – By City & Prefecture

Here is the breakdown of average sales prices per square meter by area for October 2021 compared to September 2021 and year-on-year.

Source: Real Estate Economic Research Institute (不動産経済研究所)


Sources:

REEI, October 2021 Tokyo New Condominium Market Trends Report (PDF in Japanese)

REEI, September 2021 Tokyo New Condominium Market Trends Report (PDF in Japanese)

REEI, October 2020 Tokyo New Condominium Market Trends Report (PDF in Japanese)

Lead photo: Autumn in Ginza, Tokyo via iStock 627327516


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