Condos Rebound in the Tokyo Area after Four Years

Investment Properties Japan

Real Estate Investment Japan

25 July, 2017 –

The number of new condominiums put up for sale in the greater Tokyo area in the January-June period grew 1.9 percent from the previous year to 14,730 units, marking the first rise in four years, a private think tank said Tuesday. The condominium market in the area, which covers the capital and the three neighboring prefectures of Kanagawa, Saitama and Chiba, may have hit bottom following a slump stemming from high prices, industry sources said.

In recent years, sales of condominiums have been sluggish in the area as a result of rising prices on higher labor costs, which in turn reflect a labor shortage. Developers have responded by reducing supply. In the first half of 2017, the average unit price rose 3.5 percent to ¥58.84 million, up for the fifth consecutive year, according to the Real Estate Economic Institute. The average price was the third-highest on record, led by high prices in Tokyo’s 23 wards.

But the average price turned lower in Kanagawa and Chiba as the rise in labor costs came to a pause. An official at the institute said sales are expected to pick up in the July-December period, with highly popular large-scale condominium complexes set to go on sale in July and August.

New condominium supply in the Kansai region, which covers Osaka, Kyoto, Hyogo, Nara, Shiga and Wakayama prefectures, fell 1.4 percent in the January-June period to 8,815 units, the institute said. The average unit price was down 2.7 percent at ¥37.09 million.

(Source – “The Japan Times“, Pic – Blue Hour Over Tokyo / “Balint Foeldesi“)

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