The average sales price of a newly constructed apartment in the city of Osaka was ¥40,820,000 ($359,000 USD) in September. This was a year-on-year drop of 29.7% but the average sales price per square meter was about flat year-on-year at ¥886,000 (+0.3% YoY).
For the Kansai region as a whole, the September average sales price hit ¥47,570,000 ($418,000 USD), up 1.4% year-on-year and up 7.8% versus August, led by strong price growth in Hyogo prefecture. The average sales price per square meter for Kansai was up 11.9% in September to ¥886,000.
Data for the Kansai region covers Osaka prefecture, the city of Osaka, Hyogo prefecture, the city of Kobe, Kyoto prefecture, the city of Kyoto, and Nara, Shiga, and Wakayama prefectures.
The supply of new condominiums for the Kansai region decreased by 1.5% in September coming in at 1,210 units, for two consecutive months of decreases.
This comes after a huge jump in supply in the first seven months of 2021 when developers released new inventory to the market in a bid to keep up with pent up buyer demand. In July, for example, new inventory grew 111.7% month-on-month, for seven consecutive months of growth. Following the outbreak of the pandemic last March, developers had severely pulled back on supply in 2020.
For the Kansai region as a whole, the contract rate for September was 59.4%, down 9.8 points year-on-year and down 5.6 points versus August. 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.
The September contract rate number is significant because of the strong (buyers market) data leading up to last month. The contract rates for April, May, June, July and August were 62.0%, 78.3%, 73.2%, 73.4%, and 65.0%, respectively. For the first six months of the year, the contract rate for Kansai averaged 73.0%.
Average Sales Price of an Apartment in Kansai – By City & Prefecture
Here is the breakdown of average sales prices by area for September 2021 compared to August 2021 and year-on-year.
For more information about Osaka
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Lead photo: Dotonbori, Osaka via iStock
REEI, September 2021 Kansai New Condominium Market Trends Report (PDF in Japanese)
REEI, September 2020 Kansai New Condominium Market Trends Report (PDF in Japanese)
REEI, August 2021 Kansai New Condominium Market Trends Report (PDF in Japanese)