The average sales price of a newly constructed apartment in the city of Osaka was ¥39,460,000 ($349,000 USD) in October.
This was a year-on-year drop of 3.3%, with the average sales price per square meter also dropping year-on-year to ¥805,000 ($6,354 USD), down -15.2%.
For the Kansai region as a whole, the October average sales price came in at ¥42,220,000 ($373,000 USD), down 13.9% year-on-year and also down 11.2% versus September, with significantly lower sales prices in Hyogo prefecture and Kobe pulling down October numbers. The average sales price per square meter for Kansai was down 5.6% in October to ¥720,000.
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 increased 3.0% in October to 1,457 units, the first time in three months that new supply increased year-on-year.
The Kansai regions saw 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 October was 57.3%, down 0.7 points year-on-year and down 2.1 points versus September. 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 and October contract rate numbers are 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 October 2021 compared to September 2021 and year-on-year.
Average Sales Price Per Square Meter of an Apartment in Kansai – By City & Prefecture
Here is the breakdown of average sales prices by area for October 2021 compared to September 2021 and year-on-year.
For more information about Osaka
Kansai New Condominium Market Report for January to June 2021
What can you buy in Osaka for $150,000 or less?
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Sources:
REEI, October 2021 Kansai New Condominium Market Trends Report (PDF in Japanese)
REEI, October 2020 Kansai New Condominium Market Trends Report (PDF in Japanese)
REEI, September 2021 Kansai New Condominium Market Trends Report (PDF in Japanese)
Lead image: November 24, 2012: Osaka Castle at the moat and tower during the autumn foliage season via iStock 1007811316 Credit:Sean Pavone