On October 18th, the Real Estate Economic Institute announced the market trend for new condominiums for sale in the Greater Tokyo Area (GTA) for September 2021.
The GTA consists of Tokyo, Saitama, Chiba and Kanagawa prefectures.
The number of units sold in September declined to 2,311 (down 6.7% Year-on-Year).
By region, 975 units were sold in Tokyo's 23 wards (down 3.1% YoY), 261 units in the Tokyo’s non-23 wards (up 49.1% YoY), 493 units in Kanagawa Prefecture (up 4.0% YoY), 277 units in Saitama Prefecture (up 5.7% YoY), and 305 units in Chiba Prefecture (down 45.5% YoY).
The contract rate, a metric displayed as a percentage that indicates how many units were sold in the first month from when sales commenced in a brand new building, was 67.7% (down 5.7 points YoY), falling below the crucial 70% level once again after August’s turn into negative YoY territory.
This 70% level is commonly seen to be a dividing line between favorable and unfavorable buyer-demand conditions. A contract rate under 70% indicates softening demand and likewise, above indicates greater demand.
The average price per unit was 65.84 million yen (up 13.3% YoY), and the average price per square meter was 989,000 yen (up 12.8% YoY), continuing double-digit increases.
The number of units that sold out immediately once sales commenced was 383 units in 5 buildings, including the first phase of Park Tower Kachidoki South (Chuo Ward, Tokyo, 233 units).
The number of brand new units still for sale at the end of September was 5,614, down 275 units from the end of August.
The number of units for sale in October is estimated to be around 3,500 according to the research institute.
On the same day, key indicators for the first half of FY2021 (April-September 2021) were also announced. The number of units sold in the GTA overall was 12,809 (up 44.7% year-on-year), and the contract rate was 70.6% (up 0.4 points year-on-year), exceeding 70%.
The average price was 67,020,000 yen (up 10.1% YoY), and the average price per square meter was 1,021,000 yen (up 9.7% YoY).
Further Reading
Real Estate Economic Institute September GTA Brand New Condo Report (Japanese only; October, 2021)
