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Real estate market trends

[Tokyo Metropolitan Investment Apartment Market Trends: 2022 Overview and H1 2023 Insights ]

On August 8, 2023, the Real Estate Economics Institute announced the “Tokyo Metropolitan Investment Apartment Market Trends: 2022 Overview and H1 2023 Insights. ”

According to the “2022 Overview ”, there were 131 investment projects and 5,961 units sold in 2022. While the number of projects increased by 0.8% year-on-year, the number of units decreased by 1.1％.

■Average selling price: JPY 32.84 million(+4.9%  year-on-year)
■Price per square meter: JPY 1.214 million(+3.8%  year-on-year)
■Both have increased for the first time in two years.

In terms of unit supply, Ota-ku , Tokyo takes the lead with 675 units, followed by Koto-ku (617), Minami-ku, Yokohama (566), Sumida-ku (430), and Itabashi-ku (411). Collectively, these top five areas constitute 45.3% (2,699 units) of the total supply.

According to the "H1 2023 Insights ", there were 56 investment projects and 2,820 units sold in the first half of 2023. While the number of projects decreased by 33.3% year-on-year, the number of units decreased by 23.3%.

■Average selling price: JPY 31.82 million(-1.7% year-on-year)
■Price per square meter: JPY 1.213 million(±0%  year-on-year)

The supply of investment apartments in the Tokyo metropolitan area increased from the late 1990s to the mid-2000s due to ultra-low interest rates in Japan. In 2007, the annual supply exceeded 9,000 units for the first time. However, the supply has decreased significantly since 2008 due to soaring land prices and the impact of the bankruptcy of Lehman Brothers. Even now, only around 6,000 units are being supplied annually.

Especially within Tokyo's 23 wards , fierce competition to acquire land continues, so the supply in the suburbs is expected to increase for the time being.