The Real Estate Information Network for East Japan (REINS; pronounced “rains”) reported on October 18th that the transaction volume of existing condominiums in the Greater Tokyo Area (GTA) declined in the third quarter of 2024 (July to September), marking the first decrease in five quarters.
Greater Tokyo Existing Condominium Q3 2024 Report
The number of sales contracts for existing condos in the GTA was 8,539 contracts, down 2.9% year-on-year (YoY), marking the first decline in five quarters.
Further broken down by prefecture:
Prefecture | No. of Condo Contracts | YoY % Change |
Tokyo | 4,514 | 6.5% down |
Kanagawa | 1,997 | 3.1% down |
Chiba | 1,078 | 9.7% up |
Saitama | 950 | 2.9% up |
The number of newly listed for sale existing condos in the GTA stood at 46,428, a 4.9% drop from the same period last year.
Despite the decrease in transactions, prices for existing condos continued to rise. The average GTA transaction price per square meter reached ¥767,400; a 5.6% increase YoY, continuing a 17-quarter streak of price growth.
All regions saw prices increase compared to the previous year, with Tokyo’s 23 wards recording a sharp rise to ¥1,173,700 per square meter, up 11.4%.
The overall average GTA existing condo sale price rose 5.5% to ¥48.75 million, maintaining 48 straight quarters of price growth since Q4 2012.
Put together, the price increases seem to be existing condo supply shrinking in the face of continued buyer demand.
When the supply shrinks though, exactly how robust buyer demand becomes more difficult to measure.
Greater Tokyo Existing Single-Family Homes Q3 2024 Report
Sales of existing single-family homes (SFH) rose for the third consecutive quarter, with 3,478 contracts, a 12.5% increase YoY.
The average transaction price for detached houses climbed 2.2% YoY to ¥39.28 million, marking 17 consecutive quarters of YoY price growth.
The GTA SFH price increases could be seen as spillover of condo buyers looking also at SFH more given the shrinking of existing condo supply.
Further Reading:
Real Estate Information Network for East Japan 2024 Q3 Existing Condo & SFH Transaction Report (Japanese only; presents more historical data than what is outlined above)
Source:
R.E. Port News (Japanese only)
