Existing apartment sales in Japan are exceeding new construction, according to new research from Japan Property Central.

In 2019, there were 38,109 reported sales of existing apartments across greater Tokyo (that figure is likely to be much higher due to a lack of public reporting of transactions).

Over the same period, there were 31,238 brand new apartments offered for sale.

Quality

An improvement in the quality of housing means that many apartments listed for resale now offer the same amenities and appeal as their new counterparts.

Professional flippers are also a strong presence in the market, supplying older apartments that have been renovated.

Source: Japan Property Central

Affordability

The cost of new apartments has risen substantially in recent years, pricing some buyers out of the market.

Existing housing is, all things being equal, naturally priced below that of new construction.

Over the past ten years, the average price of an existing apartment sold across greater Tokyo has been 45 per cent less than the average price of a brand new apartment.

Shibaura Island Cape Tower 46F. Source: Plaza Homes

As the price of new housing has increased, it has dragged up the price of existing homes.

The average price of a brand new apartment in 2019 was up 31.9 per cent from 2009, while the average price of an existing apartment had increased by 38.2 per cent over the same period.

Location

With a dire shortage of residential development sites in prime neighborhoods, buyers seeking convenience and location will often find more availability in the resale market.

Source: Japan Property Central.

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