According to the Nikkei Shimbun, the Real Estate Economic Institute announced on July 22nd that the supply of newly built condominium units in the Greater Tokyo Area (GTA) fell by 14% year-on-year to 9,066 units in the first half of 2024.
This marks the third consecutive year of decline and the first time since the COVID-19 pandemic began in 2020 that the supply has dipped below 10,000 units.
The GTA consists of Tokyo, Kanagawa, Saitama and Chiba prefectures.
The reduction in supply is largely due to real estate developers reassessing the profitability of their projects in the face of rising construction costs.
The substantial 32% drop in the number of new condo units supplied in Tokyo's 23 wards, which accounts for about 40% of the total supply, had a significant impact on the overall figures.
Although Kanagawa and Chiba Prefectures experienced increases compared to the same period last year, they were not enough to offset the decline in Tokyo.
The proportion of new condo units supplied in Tokyo's 23 wards fell to 37% of the total, the first time this figure has dropped below 40% in 16 years.
The average price of condominiums in the GTA decreased by 13% to 76.77 million yen.
This decline follows the previous year's sale of large-scale properties in central Tokyo, where all units were priced at 100 million yen or more, creating a high base effect.
In contrast, the average new condo price in Tokyo's 23 wards remained above 100 million yen for the second consecutive year, reaching 108.55 million yen.
Source:
Nikkei Shimbun (Japanese only; paywalled)
