Greater Tokyo Area newly built condo prices up 17.9 percent year on year
On September 20th, the Real Estate Economic Research Institute released August 2023's market trends for newly built condominiums in the Greater Tokyo Area (GTA).
The GTA consists of Tokyo, Saitama, Chiba and Kanagawa prefectures.
The number of GTA new condos sold in August reached 1,469 units, marking a 26.4% increase compared to the same month the previous year (YoY), marking a second consecutive monthly YoY increase.
The initial contract rate for the month stood at 68.6%, a notable 6.6-point increase, rising above the 60% threshold for the first time in 2 months.
The Initial Contract Rate refers to the percentage of initially offered condos in a complex that sold during the first month of sales. For example, if 100 out of 200 units were included in the first phase of sales and 50 of those 100 units sold, then the initial contract rate is 50%. Developers aim to achieve a 70% initial contract rate when bringing inventory to market.
The average price per unit was 71.95 million yen, reflecting a significant YoY increase of 17.9%, while the price per square meter rose to 1.149 million yen, a 19.3% YoY increase.
Both average YoY unit price and price per square meter have been on the rise for six consecutive months.
As of the end of August, the inventory for sale amounted to 4,712 units, showing a decrease of 138 units from the previous month.
The research institute estimates that approximately 2,500 units will be released for sale in September.
Download the Real Estate Economic Research Institute’s August 2023 Newly Built Condo Report (Japanese only)