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May new condo offerings in Tokyo area down 19.4%

June 23, 2009
By Ken Worsley


The Real Estate Economic Institute released its report on May condo sales in the Tokyo area on June 16, but it’s been a bit busy to get a post up. At any rate, the number of new condo units put on sale in May stood at 3,538, down 19.4% from a year ago. New condo offerings have now declined for 21 consecutive months.

Also in May, 2,502 condos were actually sold in the Tokyo area (which includes Chiba, Kanagawa and Saitama in this report). The average sale price was about 45.5 million yen (638,000 yen per square meter), down 2.77 million yen, or 5.7%, from a year ago.

The report also makes it clear that inventories are still high. Though they declined by 458 units against the previous month to 8,333, this figure is still high enough to persuade builders to hold new units off the market.

The institute is also already revising its 2009 sales projections downward. Back in January it had predicted that new condo sales in the Tokyo area would rise 7.5% to about 47,000 units in 2009. The institute now thinks that sales may fall below the 40,000 mark.

Filed Under Economic Reports, Real Estate 

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Comments

2 Responses to “May new condo offerings in Tokyo area down 19.4%”

  1. Chiang Mai Home on July 31st, 2009 11:48 am

    Thank for this report.

  2. Vincent on September 16th, 2009 1:13 am

    I am considering buying a condo in Tokyo but worried about the future of Japan’s economy and its impact to housing prices. A loan may take about 30 years to pay off but after 30 years and with 30 years of population decline, what will be the outlook in value for the same condo that is bought today?

    Of course it depends on location so lets say a condo that is popular now and 2 minutes away from a busy station…

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