BREAKING NEWS!
On October 21st, the Japan Institute of Real Estate Economics released a report on the trend of the new condominium market in the Tokyo area and Kinki region for the first half of 2024 (April to September).
Among them, the average price of new condominiums in Tokyo's 23 wards hit a record high for the second consecutive year, reaching 110 million yen.
01
Tokyo Area
Rising house prices across the region
According to the report, sales of new condominiums in the first half of 2024 in the Tokyo area (encompassing the Tokyo metropolitan area, Kanagawa Prefecture, Saitama Prefecture, and Chiba Prefecture) totaled 8,238 units, a decline of 29.7% compared to the same period last year.
This phenomenon is mainly attributed to rising construction costs and labor scarcity, forcing several large-scale real estate projects to delay their start-up or extend their construction period.
From a price perspective, the average selling price of newly built apartments in Tokyo in the first half of 2024 was 79.53 million yen, while the unit price per square meter was 1.209 million yen.
Both indicators rose for the second consecutive year, reflecting the popularity of high-priced apartments in the city center.
By district, the average price of new condominiums in Tokyo's 23 wards rose 4.5% year-on-year to 110.51 million yen, a record high for the second consecutive year.
Meanwhile, the average price of new condominiums in Lower Tokyo, Kanagawa Prefecture, Saitama Prefecture, and Chiba Prefecture was 59.71 million yen (up 8.8%), 63.91 million yen (up 10.7%), 52.75 million yen (up 6.4%), and 55.95 million yen (up 17.3%), respectively.
Overall, the average price of new condominiums in all areas of the Tokyo metropolitan area showed an increase.
02
Kinki Area
Record-high rise in unit prices
The Kinki Circle (encompassing Osaka Prefecture, Hyogo Prefecture, Nara Prefecture, Shiga Prefecture, and Wakayama Prefecture) saw a strong performance in the new condominium market in the first half of 2024, with sales of 6,612 units, up 4.1% year-on-year, the first positive growth in nearly three years.
From a price perspective, the average selling price of newly built condominiums in the Kinki area was ￥53.93 million, or ￥883,000 per square meter per unit, of which the unit price rose by ￥6.97 million from the previous period (an increase of 14.8%), which was the highest level since 1991 for the same period.
This price increase was mainly attributable to the increase in the number of high-end tower projects in the Osaka metropolitan area, which drove up overall unit prices and prices per square meter.
03
Weak Yen
Time to invest in Japanese real estate
Since 2021, the yen exchange rate has continued to weaken. Although the Federal Reserve's interest rate cut and the Bank of Japan's entry into the interest rate hike cycle once prompted the yen to appreciate rapidly in July, it has now entered a pullback.
Recently, with the strengthening of the dollar, the yen against the U.S. dollar exchange rate slipped again, once fell below the 150 mark on October 18, hitting a new low since August.
According to authoritative Japanese media reports, the Bank of Japan is unlikely to take action at this month's policy meeting.
The depreciation of the yen also means that the cost of overseas investors to buy property in Japan is correspondingly lower. As such, it is the perfect time to invest in Japanese real estate.
If you are interested in purchasing a property in Japan, or would like to know more details, please contact Nebula Sea International and we will provide you with customized solutions.
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