Average Sale Price of a New Apartment in Greater Tokyo Leaps 24.9% in April

The average sales price of a newly constructed apartment sold in greater Tokyo in April jumped 24.9% year-on-year to hit ¥77,640,000 ($712,500 USD). This occurred amidst a hefty number of apartments being brought online by developers last month, with 2,089 new units being offered for sale, a jump of 204.5% year-on-year.

These two data points underscore a theme that will likely continue to play out this year: homebuyers in greater Tokyo are in a buying mood and supply seems unlikely to keep up with demand.

Last month’s sales numbers were released by the Real Estate Economic Institute’s (REEI) in its Greater Tokyo New Condominium market report for April. 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 April data:

  • The Tokyo western suburbs had the highest year-on-year increase in price, +47.2%, with an average sales price of ¥56,770,000 ($521,000).
  • Average sales prices, unsurprisingly, were highest in the Tokyo 23 Wards, coming in at ¥101,800,000 ($934,000), a year-on-year increase of 43.0%.
  • The first month’s contract rate for greater Tokyo was 73.6% (down 5 points year-on-year but maintaining the same level as for March). 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.
  • Sales of units in super tall skyscrapers (20-stories and higher) were strong, with 440 units contracted for sale in 15 different buildings, a year-on-year increase of 182.1%; representing a contract rate of 76.4%.

Over half of new supply released for sale in April was in the Tokyo 23 Wards. The distribution in greater Tokyo was as follows:

  • Tokyo 23 Wards — 1,068 units (51.1%)
  • Tokyo western suburbs — 280 units (13.4%)
  • Kanagawa — 424 units (20.3%)
  • Saitama — 137 units (6.6%)
  • Chiba — 8.6%

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

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

Apr 2021 – Average Sales Price in JPY Mar 2021 – Average Sales Price in JPY Apr 2021 v. Mar 2021
MoM % Change
Apr 2020 – Average Sales Price in JPY Apr 2021 v. Apr 2020
YoY % Change
Tokyo 23 Wards 101,800,000 80,670,000 26.2% 71,170,000 43.0%
Tokyo Western Suburbs 58,150,000 56,770,000 2.4% 39,510,000 47.2%
Kanagawa 51,450,000 55,770,000 -7.7% 47,780,000 7.7%
Saitama 52,250,000 49,120,000 6.4% 54,040,000 -3.3%
Chiba 45,580,000 45,550,000 0.1% 43,630,000 4.5%
Greater Tokyo 77,640,000 63,300,000 22.7% 62,160,000 24.9%

Average sales prices by square meter

Apr 2021 – Average Sales Price
Per SQM in JPY
Mar 2021 – Average Sales Price
Per SQM in JPY
Apr 2021 v. Mar 2021
MoM % Change
Apr 2020 – Average Sales Price
Per SQM in JPY
Apr 2021 v. Apr 2020
YoY % Change
Tokyo 23 Wards 1,490,700 1,252,000 19.1% 1,156,000 29.0%
Tokyo Western Suburbs 817,000 842,000 -3.0% 676,000 20.9%
Kanagawa 751,000 815,000 -7.9% 869,000 -13.6%
Saitama 770,000 694,000 11.0% 798,000 -3.5%
Chiba 616,000 629,000 -2.1% 575,000 7.1%
Greater Tokyo 1,125,000 935,000 20.3% 1,020,000 10.3%

FAQs About Buying Property in Japan

Can a foreigner buy property in Japan?

Yes. You can buy property in Japan regardless of your nationality or country of origin. There are also no residency requirements for buying real estate in Japan. Securing financing as a resident foreigner is more complicated. For info on financing, please see “Basic Requirements for Getting a Mortgage as a Foreigner in Japan“.

How do I get a property loan as a foreigner in Japan?

Please see this article for information on: Getting a property loan as a foreigner in Japan

What is the process for buying a property in Japan?

Please see our step-by-step guide: Guide to Buying Property in Japan

See how much you can borrow and your monthly payments in yen: Yen Mortgage Loan Calculator

For information about purchase and brokerage fees: Breakdown of real estate purchase fees and taxes in Japan

Need to know: Earthquake building codes and technology in Japan

Bilingual Real Estate Agent in Tokyo Answers Your FAQs on Buying and Managing an Investment Property

How much is my property worth?

Real Estate Japan is pleased to offer free, no obligation appraisals for owners of property in Japan. Please click here and fill out the form: How much is my property worth?

7 situations when you should consider selling your investment property in Japan

What are the main factors affecting home sale prices in Japan in 2019?

2021 homebuyer incentives in Japan

Homeowners in Japan can expect lower property taxes in 2021

2021 mortgage loan tax deduction rules for homeowners in Japan

Seminars on Buying Property in Japan

Please see our seminar page for a current list of seminars on: how to buy a home in Japaninvesting in Japanese real estate for beginnershow to apply for permanent residency in Japanhow to sell property in Japan, and much more.


Source:

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

Lead photo: Tokyo skyline, iStock 955896086