The average sales price of a new condominium sold in November in greater Tokyo (which includes Chiba, Saitama and Kanagawa prefectures) was 63,280,000 yen ($520,000), breaking through the 60 million mark for the first time since June 1991, according to data recently released by the Real Estate Economic Institute.
This average price represented a remarkable increase of 21.1% compared to the average sales price in November 2014.
The November average price per square meter works out to 871,000 yen ($7,157) per square meter or about $666 per square feet.
In November there were 3,496 condos sold in greater Tokyo, an increase of 4.8% compared to October and a year-on-year increase of 19.7% versus November 2014.
The contract rate (the number of units contracted for sales divided by the number of units released for sale) for greater Tokyo was also strong, at 82.1%, an increase of 3.7% versus October and 13.3% versus November 2014. This was the second highest contract rate since July this year.
The main takeaway from the data is that November was a very strong sales month, as buyers aggressively snapped up newly released condos, driving the average sales price to a 24.5 year high.
In Greater Tokyo in November, the inventory of units offered for sale stood at 4,945 apartments, 74 units less than the October inventory figure of 5,019. The November figure represented an increase of 28.0% over the November 2014 number.
By Major Market
For November, the average sales price and average price per square meter by major market of a new condo sold in the greater Tokyo were as follows:
Tokyo 23 Wards: Average price 82,440,000 yen (up 29.1% YoY), 1,158,000 yen per square meter (up 22.9% YoY)
Tokyo suburbs: Average price 46,040,000 yen (down 0.5% YoY), 611,000 yen per square meter (down 1.0% YoY)
Kanagawa Prefecture: Average price 46,310,000 yen (up 13.2% YoY), 636,000 yen per square meter (up 12.0% YoY)
Saitama Prefecture: Average price 50,840,00 yen (up 31.8% YoY), 696,000 yen per square meter (up 28.9% YoY)
Chiba Prefecture: Average price 45,430,000 yen (up 13.2% YoY), 600,000 yen per square meter (up 19.5% YoY)
Number of new condo units sold in November by major market in greater Tokyo:
Tokyo 23 wards: 1,594
Tokyo suburbs: 550
Kanagawa Prefecture: 639
Saitama Prefecture: 466
Chiba Prefecture: 247
The Real Estate Economic Institute estimates that there will be 7,000 condominium units released for sale in December, significantly fewer than the 9,389 units that went on the market in December 2014.
November was also a strong month for very high-end units, as a number of developments saw impressive prices for the most sought after apartments.
For example, the average price for a condominium in the 44-story Park Court Akasaka Hinokicho The Tower development in Tokyo Mid Town was 262,780,000 yen ($2,155,000).
November was the first month that units in the Park Court Akasaka Hinokicho The Tower development were released for sale. All units released in the building received purchase applications the day they were put on the market, with the most popular apartment receiving 10 applications.
These were the developments that had same-day sellouts in November.
For November’s report, please see Price of New Condos in Tokyo 23 Wards Up 28.8% Despite Tilting Condo Scandal
Photo: CG rendering of the 27th floor view lounge in the Park Court Akasaka Hinokicho The Tower.