The average sales price of a newly constructed apartment in the greater Tokyo region was ¥65,840,000 ($578,000 USD) in September. This was a year-on-year increase of 13.3%. The average sales price per square meter was ¥989,000 ($8,674 USD), up 12.8% year-on-year and the third 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 shot up 24.3% year-on-year in September to ¥86,070,000 ($755,000 USD) but down 20.4% compared to August.
In the aftermath of 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.
The supply of new condominiums in the greater Tokyo region increased by 19.1% in September compared to August coming in at 2,311 units, but was still 6.7% lower than the number of new properties released in August 2020.
Total inventory of new condominiums in greater Tokyo reached 5,614 units in September, representing nine consecutive months of month-on-month declines in inventory.
For the greater Tokyo region as a whole, the contract rate for September was 67.7%, down 5.7 points year-on-year and down 5.3 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.
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 September 2021 compared to August 2021 and year-on-year.
Other recent reports
- September 2021 Kansai area new apartment report (Osaka, Kobe, Kyoto and the prefectures of Osaka, Hyogo, Kyoto, Nara, Shiga, and Wakayama)
- Tokyo new condominium market trends report for January to June 2021
- Kansai new condominium market trends report for January to June 2021
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Lead photo: Rainbow Bridge and SkyTree, Tokyo via iStock 578833874
REEI, September 2021 Tokyo New Condominium Market Trends Report (PDF in Japanese)
REEI, September 2020 Tokyo New Condominium Market Trends Report (PDF in Japanese)
REEI, August 2021 Tokyo New Condominium Market Trends Report (PDF in Japanese)