The average sales price of a newly constructed apartment in Japan’s Kansai region hit ¥53,560,000 ($492,400) last month, the highest per unit sales price recorded since May 1992, when the average sales price reached ¥53,580,000 (after having fallen from a bubble era high of ¥82,400,000 reached in October 1991).
This was the key takeaway from the Real State Economic Institute (REEI)’s April new condominium market trends report for the Kansai region. 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.
Here are the other main highlights from the April data:
- The main driver of the big jump in unit sales prices was that almost 40% of units sold last April were compact city-center units with a small footprint; and usually purchased for investment purposes.
- The average sales price for a newly built condominium sold in the city of Osaka jumped 152.0% in April, to ¥61,740,000 ($568,000).
- The average sales price per square meter for the Kansai region also jumped substantially, up 22.0%, to ¥775,000 per sqm.
- The contract rate for April was 62.0%, which was a 15.9 point year-on-year drop and 12.8 points down versus 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. The April contract rate was the lowest since since January (when it was 61.2%).
Average Sales Price of an Apartment in Kansai – 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 |
|
Osaka City | 61,740,000 | 42,320,000 | 45.9% | 24,500,000 | 152.0% |
Osaka Prefecture | 48,050,000 | 53,190,000 | -9.7% | 44,530,000 | 7.9% |
Kobe | 54,290,000 | 20,040,000 | 170.9% | 67,270,000 | -19.3% |
Hyogo Prefecture | 51,550,000 | 51,160,000 | 0.8% | 39,930,000 | 29.1% |
Kyoto City | 58,090,000 | 58,440,000 | -0.6% | 63,350,000 | -8.3% |
Kyoto Prefecture | 59,070,000 | 40,320,000 | 46.5% | N/A | N/A |
Nara Prefecture | 45,780,000 | 32,020,000 | 43.0% | 40,670,000 | 12.6% |
Shiga Prefecture | 37,880,000 | 39,110,000 | -3.1% | 36,690,000 | 3.2% |
Wakayama Prefecture | 36,100,000 | 39,300,000 | -8.1% | 37,600,000 | -4.0% |
Kansai Region | 53,560,000 | 42,260,000 | 26.7% | 34,340,000 | 56.0% |
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 — % Change | Apr 2020 – Average Sales Price Per SQM in JPY |
Apr 2021 v. Apr 2020 — % Change
|
|
Osaka City | 926,000 | 872,000 | 6.2% | 731,000 | 26.7% |
Osaka Prefecture | 714,000 | 660,000 | 40.3% | 604,000 | 18.2% |
Kobe | 776,000 | 702,000 | 1.7% | 855,000 | -9.2% |
Hyogo Prefecture | 711,000 | 633,000 | 22.6% | 566,000 | 25.6% |
Kyoto City | 854,000 | 734,000 | -3.1% | 863,000 | -1.0% |
Kyoto Prefecture | 762,000 | 557,000 | 53.3% | N/A | N/A |
Nara Prefecture | 601,000 | 637,000 | 19.6% | 531,000 | 13.2% |
Shiga Prefecture | 577,000 | 610,000 | -1.5% | 498,000 | 15.9% |
Wakayama Prefecture | 505,000 | 481,000 | 20.0% | 495,000 | 2.0% |
Kansai Region | 775,000 | 757,000 | -30.9% | 634,000 | 22.2% |
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“.
Seminars on Buying Property in Japan
Please see our seminar page for a current list of seminars on: how to buy a home in Japan, investing in Japanese real estate for beginners, how to apply for permanent residency in Japan, how to sell property in Japan, and much more.
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
Sources:
REEI, April 2021 Kansai New Condominium Market Trends Report (PDF in Japanese)
REEI, April 2020 Kansai New Condominium Market Trends Report (PDF in Japanese)
Lead photo: Abeno district, Osaka via iStock-635865112