Kansai New Apartment Sales Continue Strong Showing, as Supply Jumps in Feb

Sales prices of newly constructed apartments in the Kansai region, which includes Osaka, Kyoto, and Kobe, averaged ¥39,540,000 ($361,000 USD) in February, a year-on-year increase of 17.3%. The supply of properties released by developers in Kansai also jumped last month by 66.0% year-on-year to 1,718 units. These were the key highlights from the Real State Economic Institute (REEI)’s February new condominium market trends survey for the Kansai region.

February is the second consecutive month in which both the unit sales price and sales price per square meter has increased year-on-year.

Also of note is February’s very strong contract rate (indicating strong buyer interest) of 78.5% for the region as a whole, compared to 75.3% in February 2020 and 61.2% in January. The contract rate is the number of units contracted for sale divided by the number of units offered for sale.

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 February 2021 compared to January 2021 and year-on-year.

Feb 2021 – Average Sales Price in JPY Jan 2021 – Average Sales Price in JPY Feb 2021 v. Jan 2021 — MoM % Change Feb 2020 – Average Sales Price in JPY
Feb 2021 v. Feb 2020 — YoY % Change
Osaka City 37,930,000 47,930,000 -20.9% 26,510,000 43.1%
Osaka Prefecture 47,450,000 40,230,000 17.9% 51,530,000 -7.9%
Kobe 34,490,000 39,270,000 -12.2% 37,520,000 -8.1%
Hyogo Prefecture 46,940,000 51,690,000 -9.2% 35,770,000 31.2%
Kyoto City 28,760,000 66,420,000 -56.7% 43,580,000 -34.0%
Kyoto Prefecture 41,460,000 41,350,000 0.3% N/A N/A
Nara Prefecture 49,710,000 44,260,000 12.3% N/A N/A
Shiga Prefecture 40,370,000 41,800,000 -3.4% 39,340,000 2.6%
Wakayama Prefecture 35,310,000 36,940,000 -4.4% 37,100,000 -4.8%
Kansai Region 39,540,000 46,290,000 -14.6% 33,700,000 17.3%

Average sales prices by square meter

Feb 2021 – Average Sales Price Per SQM in JPY
Jan 2021 – Average Sales Price Per SQM in JPY Feb 2021 v. Jan 2021 — % Change Feb 2020 – Average Sales Price Per SQM in JPY
Feb 2021 v. Feb 2020 — % Change
Osaka City 872,000 700,000 24.6% 750,000 16.3%
Osaka Prefecture 660,000 560,000 17.9% 683,000 -3.4%
Kobe 702,000 545,000 28.8% 592,000 18.6%
Hyogo Prefecture 633,000 815,000 -22.3% 557,000 13.6%
Kyoto City 734,000 883,000 -16.9% 603,000 21.7%
Kyoto Prefecture 557,000 536,000 3.9% N/A N/A
Nara Prefecture 637,000 609,000 4.6% N/A N/A
Shiga Prefecture 610,000 636,000 -4.1% 543,000 12.3%
Wakayama Prefecture 481,000 505,000 -4.8% 471,000 2.1%
Kansai Region 731,000 673,000 8.6% 671,000 8.9%

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Sources:

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

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

Lead photo: iStock-1161555395