The typical gross sales value of a newly constructed condominium within the better Tokyo area was ¥74,180,000 ($604,000 USD) in February. This was a year-on-year improve of 16.3% and up 20.5% in comparison with January.
The typical gross sales value per sq. meter was ¥1,095,000 ($8,908 USD), up 15.5% year-on-year and the second consecutive month of year-on-year will increase.
The massive image story for the February report is that though costs have continued to rise, the contract fee suggests that buyers are in a shopping for temper. The contract fee is the variety of items contracted on the market divided by the variety of items supplied on the market. The February contract fee for better Tokyo was 73.3%. This was the primary time in two months that the speed exceeded the 70% mark, which is taken into account the dividing line between a vendor’s and purchaser’s market.
The REERI report covers the better Tokyo area. This consists of the Tokyo 23 Wards, the Tokyo western suburbs, and the prefectures of Kanagawa, Saitama, and Chiba.
One other notable datapoint from the February numbers was the energy of the Tokyo 23 Ward market. In February, the common gross sales value within the Tokyo 23 Wards was ¥96,850,000 ($788,000 USD), up 30.3% year-on-year and in addition up 29.4% in comparison with January. To place this value level into perspective, the 2021 average sales price of a newly constructed condominium offered within the Tokyo 23 Wards was ¥82,930,000 ($729,000 USD), which was the primary time in 30 years that the value had exceeded the 80 million yen mark.
Begin of the spring gross sales season
February represents the beginning of the spring gross sales seasons for condominium builders, so final month’s robust gross sales efficiency is a hopeful signal that the rest of the 12 months will proceed to see robust shopper demand.
On the demand facet, many potential consumers are individuals seeking to purchase their very own houses with the intention to reap the benefits of Japan’s record-low mortgage charges and the growing acceptance of working-from-home. Nevertheless, as land costs and labor prices are persevering with to rise, the value of recent developments will proceed to rise. Because the Financial institution of Japan has said that it plans to proceed financial easing, the prospect of fee will increase in Japan stay low.
What does the provision facet appear to be? Final month, builders launched new stock at a cautious tempo (provide of recent items in better Tokyo elevated in February by 2% year-on-year, for a complete of two,287 items). The forecast variety of new items for March is about 3,500 items, which might be a 12.8% year-on-year improve. It stays to be seen whether or not shopper demand will proceed to carry.
In February, high-end condominiums in central Tokyo and Kachidoki (within the Tokyo Bay Space) and suburban properties close to main practice hubs had been well-liked with consumers.
Persevering with the development from final 12 months, properties in Chiba had been additionally very talked-about. Final month, builders launched 301 new items on the market in Chiba, with a ensuing contract fee of 83.1%. This was an enormous soar of 25.4 factors in comparison with final February and the very best contract fee of any of the sub-regions in better Tokyo. The typical gross sales value in Chiba was additionally up, hitting ¥57,340,000 ($467,000 USD), a year-on-year improve of 26.4%).
Common Gross sales Worth of an Condo in Tokyo – By Metropolis & Prefecture
Right here is the breakdown of common gross sales costs by space for February 2022 in comparison with January 2022 and year-on-year.
Common Gross sales Worth Per Sq. Meter of an Condo in Tokyo – By Metropolis & Prefecture
Right here is the breakdown of common gross sales costs per sq. meter by space for February 2022 in comparison with January 2022 and year-on-year.
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REEI, February 2022 Tokyo New Condominium Market Tendencies Report (PDF in Japanese)
REEI, January 2022 Tokyo New Condominium Market Tendencies Report (PDF in Japanese)
REEI, February 2021 Tokyo New Condominium Market Tendencies Report (PDF in Japanese)
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