The typical gross sales worth of a newly constructed condominium in Japan reached a report excessive of ¥51,150,000 ($443,000 USD) in 2021 (up 2.9% in comparison with 2020) and the fifth consecutive yr of year-on-year report will increase.
The typical worth per sq. meter reached ¥784,000 ($6,784 USD) per sq. meter, which was additionally the fifth consecutive yr of year-on-year report will increase (up 3.4% YoY in 2021) and an all-time excessive.
Report-setting gross sales costs are being pushed by excessive land acquisition prices and a scarcity of labor within the building business. Japan’s traditionally low rate of interest setting has additionally been a key consideration when persons are penciling out whether or not to purchase or lease.
Additionally, as increasingly more persons are working from dwelling because of the pandemic, shoppers want to purchase their very own condominium in order that they’ll accommodate telecommuting. Many patrons, particularly in Tokyo are double-income households who can afford to bid on higher-end properties close to the town heart. These numerous demand components are propping up excessive gross sales costs.
Though not captured within the information beneath, these traits are additionally propelling the demand for extra spacious single-family properties and for resale residences, that are cheaper than newly constructed condominiums.
The important thing takeaways and information beneath comes from the Real Estate Economic Research Institute’s nationwide new condominium market traits report for 2021.
Models offered 2012 to 2021
Final yr, builders offered 77,552 newly constructed condominium models, a rise of 29.5% year-on-year. Very robust nationwide gross sales numbers have been led by particularly sturdy gross sales within the Tokyo metropolitan region and Kansai region (which incorporates the prefectures of Osaka, Kyoto, and Hyogo).
The variety of models offered final yr surpassed pre-COVID (2019) annual gross sales outcomes by virtually 10% (77,552 models nationwide in 2021 versus 70,660 in 2019).
The variety of condominium models offered in Tokyo metropolitan space (Tokyo, Kanagawa, Saitama, and Chiba), which accounted for greater than 40% of the whole, elevated by 23.5% in comparison with the 2020. Each area within the nation, together with Kansai, Tokai/Chukyo (Nagoya), Hokkaido, Kyushu/Okinawa surpassed 2020 gross sales.
As a result of pandemic, gross sales in 2020 plummeted beneath 60,000 models nationwide, the primary time since 1976 that gross sales dipped beneath the 60,000 mark. The robust ends in 2021 are a powerful indication that the market has recovered from pandemic lows. The chart above exhibits unit gross sales numbers for the previous ten years (2012 to 2021) and means that if provide can sustain with purchaser demand and if rates of interest stay low, there may be nonetheless room for unit gross sales to extend within the coming years, particularly within the Tokyo metro area.
Gross sales worth 2012 to 2021
The chart beneath exhibits the common gross sales worth of a newly constructed condominium offered in Japan and by area, from 2012 to 2021.
Gross sales worth per sq. meter 2012 to 2021
The chart beneath exhibits the common gross sales worth per sq. meter of a newly constructed condominium offered in Japan and by area, from 2012 to 2021.
For additional information by area:
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