News Archive : Japan Real Estate

Friday, November 18, 2005

Condos In Tokyo, Osaka Markets Hit Year-To-Date Highs In October

Wednesday, November 16, 2005
Condos In Tokyo, Osaka Markets Hit Year-To-Date Highs In October

TOKYO (Nikkei)--The number of new condominium units released for sale in the Tokyo and Osaka metropolitan areas reached the highest level so far this year in October, according to figures released Tuesday by the Real Estate Economic Institute Co.

While the supply of condos rose sharply in the Tokyo areas of Saitama and Kanagawa prefectures, the contract rate topped 80% for the sixth consecutive month, showing that demand is also strong. In the Osaka region, the number of newly released condos in October exceeded 4,000 units for the first time in six months.

The supply in the Tokyo metropolitan area in October jumped 8.9% on the year to 8,865 units. And the number of available units doubled to 1,328 in Saitama Prefecture and surged 40% to 2,487 in Kanagawa Prefecture.

In Tokyo's 23 wards, the supply fell 26.9% to just 2,909 units as land prices spiked and developers shifted projects to the suburbs, where land is more readily available.

Contracts are maintaining a torrid pace, surpassing the 70% boom-or-bust line. The average sales price, however, declined 1.9% from last year to 41.05 million yen as a result of the increase in suburban condos.

The Osaka area saw 4,103 units sold in October, up 24.3%. The contract rate stood at 75.2%, and the average sales price reached 32.15 million yen. Land prices have also started to climb in the Osaka region.

For the full year, the number of condos put on the market are expected to reach 86,500 units in the greater Tokyo area and 31,000 units in metropolitan Osaka.

(The Nihon Keizai Shimbun Wednesday morning edition)