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% |
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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)
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