The average sales price of a newly built apartment in the Tokyo area was ¥65,840,000 ($578,000 USD) in September. This was a year-over-year increase of 13.3%. Average selling price per square foot was ¥989,000 ($8,674 USD), a 12.8% year-over-year increase and the third consecutive month of year-over-year increases.

The greater Tokyo region consists of the Tokyo 23 Wards, the western suburbs of Tokyo, and Kanagawa, Saitama, and Chiba prefectures.

Selling prices in the Tokyo 23 Wards rose 24.3% year-on-year in September to ¥86,070,000 ($755,000 USD), but down 20.4% compared to August.

In the wake of the initial COVID emergency, developers began pulling back on new offerings from April and May last year. Throughout the rest of 2020, tight supply, coupled with continued historically low mortgage rates, continued to push prices up. Steady upward growth in average selling prices is a notable feature of the larger Tokyo new apartment market.

Supply of new condominiums in the greater Tokyo area rose 19.1% in September compared to August to reach 2,311 units, but was still 6.7% lower than the number of new homes released in August 2020.

The total inventory of new condominiums in greater Tokyo reached 5,614 units in September, representing nine straight months of month-on-month declines in inventory.

For the 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 from August. The contract rate is the number of units for sale divided by the number of units for sale. A contract rate of more than 70% would indicate strong buyer interest towards the offer.

Tokyo has had a strong buyer’s market for most of 2021. 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 Tokyo’s capital averaged 72.5%.

Average sale price of an apartment in Tokyo – by city and prefecture

Here is the breakdown of average sales prices by area for September 2021 compared to August 2021 and on an annualized basis.

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Main photo: Rainbow Bridge and SkyTree, Tokyo via iStock 578833874


sources:

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)

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