Kansai buyers scooped up new apartments last month, as average sale prices fall year-on-year

The average sales price of a newly constructed apartment in the Kansai region, which includes Osaka, Kyoto, and Kobe, averaged ¥42,260,000 ($389,700 USD) in March, an increase compared to the average sales price in February (of ¥39,540,000), but a drop of 13.9% year-on-year.

This price movement occurred amidst a strong increase in the supply of new properties being released for sale and a high contract rate of 74.8%, indicating strong buyer interest in units that came onto the market. The contract rate is the number of units contracted for sale divided by the number of units offered for sale.

These were the key takeaways from the the Real State Economic Institute (REEI)’s March new condominium market trends report for the Kansai region.

The strong contract rate in the Kansai region has been a conspicuous feature of the market. In February, the contract rate was 78.5%, so the April rate of 74.8% was a decrease of 3.7 points, but represented a 5.6 point jump from the March 2020 figure of 69.2%.

The REEI’s report covers the city and prefecture of Osaka, and the prefectures of Hyogo (where Kobe is located), Kyoto, Nara, Shiga, and Wakayama.

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

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

Mar 2021 – Average Sales Price in JPY Feb 2021 – Average Sales Price in JPY Mar 2021 v. Feb 2021 — MoM % Change Mar 2020 – Average Sales Price in JPY
Mar 2021 v. Mar 2020 — YoY % Change
Osaka City 42,320,000 37,930,000 11.6% 49,710,000 -14.9%
Osaka Prefecture 53,190,000 47,450,000 12.1% 45,720,000 16.3%
Kobe 20,040,000 34,490,000 -41.9% 47,450,000 -57.8%
Hyogo Prefecture 51,160,000 46,940,000 9.0% 63,710,000 -19.7%
Kyoto City 58,440,000 28,760,000 103.2% 50,190,000 16.4%
Kyoto Prefecture 40,320,000 41,460,000 -2.7% N/A N/A
Nara Prefecture 32,020,000 49,710,000 -35.6% 43,590,000 -24.1%
Shiga Prefecture 39,110,000 40,370,000 -3.1% 42,200,000 -7.3%
Wakayama Prefecture 39,300,000 35,310,000 11.3% 38,850,000 1.2%
Kansai Region 42,260,000 39,540,000 6.9% 49,050,000 -13.8%

Average sales prices by square meter

Mar 2021 – Average Sales Price Per SQM in JPY
Feb 2021 – Average Sales Price Per SQM in JPY Mar 2021 v. Feb 2021 — % Change Mar 2020 – Average Sales Price Per SQM in JPY
Mar 2021 v. Mar 2020 — % Change
Osaka City 840,000 872,000 -3.7% 926,000 -9.3%
Osaka Prefecture 687,000 660,000 4.1% 627,000 9.6%
Kobe 796,000 702,000 13.4% 659,000 20.8%
Hyogo Prefecture 712,000 633,000 12.5% 801,000 -11.1%
Kyoto City 845,000 734,000 15.1% 727,000 16.2%
Kyoto Prefecture 535,000 557,000 -3.9% N/A N/A
Nara Prefecture 432,000 637,000 -32.2% 610,000 N/A
Shiga Prefecture 564,000 610,000 -7.5% 560,000 0.7%
Wakayama Prefecture 517,000 481,000 7.5% 528,000 -2.1%
Kansai Region 757,000 731,000 3.6% 762,000 -0.7%

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REEI, March 2021 Kansai New Condominium Market Trends Report (PDF in Japanese)

REEI, March  2020 Kansai New Condominium Market Trends Report (PDF in Japanese)

Lead image: Kyoto skyline at dusk, iStock 534664633