The Real Estate Economic Research Institute announced on November 20th the market trends for newly constructed condominiums in the Greater Tokyo Area (GTA) for October, 2023.
Looking at Year-on-Year (YoY) figures, the number of GTA units released for sale saw a significant decrease, totaling 1,486 units (a 46.3% decrease compared to the same month last year).
Broken down by prefecture:
Area Name | Units Released | YoY Change |
Tokyo 23 Ward | 479 | 55.6% down |
Tokyo non-23 Ward | 128 | 24.7% down |
Saitama Pref. | 203 | 56.3% down |
Chiba Pref. | 298 | 29.4% down |
Kanagawa Pref. | 378 | 40.2% down |
The initial contract rate fell to 60.9% (a decline of 11.0 points), marking the third consecutive month in the 60% range.
The initial contract rate is the amount of new condos that went to contract in the first month of sales. This doesn’t mean all the condos in a particular building, just the ones that have been released for sale at a particular time, usually spread out in phases over time. An initial contract rate of 70% is considered healthy. Extended periods below the 70% mark could mean buyer demand is softening.
The average price per new condo fell to ¥65.67 million (a 3.2% decrease YoY) reversing eight straight months of increases.
However, the price per square meter continued its upward trend, reaching an average of ¥1.01 million (a 1.5% increase YoY) for an eighth consecutive month.
Roughly 4,000 new GTA condo units are expected to be released for sale in November.
Further Reading:
Real Estate Economic Research Institute New Condo Market Trend Report for October 2023
Source:
R.E. Port News (Japanese only)
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