The condominium resale market in Japan is experiencing a remarkable surge, particularly in central Tokyo and Osaka. According to a recent analysis by Nikkei, the average price of pre-owned condominiums up to a year old in central Tokyo's 23 wards has escalated by 50% since 2019. This dramatic increase in property values is driving a wave of investors, including many from China and other countries, who are eager to capitalize on rising prices.
In the first ten months of 2024 alone, listings for condominiums being resold within a year of construction reached 1,548 units. This figure represents a staggering 3.7-fold increase compared to the same period in 2014. The trend indicates that the full-year total for 2024 is anticipated to surpass triple the number seen a decade ago, reflecting a robust demand for real estate in Japan's urban centers.
The data, sourced from Tokyo-based property database operator One of a Kind, showcases a significant uptick in the number of condominiums available for resale. Investors have increasingly targeted these properties, lured by the potential for substantial profits amidst a buoyant market. The rise in listings is largely attributed to this influx of investor interest, which has transformed the landscape of property sales in metropolitan areas.
The phenomenon is not limited to Tokyo alone; Osaka is also witnessing similar trends. The resale of recently constructed condominiums reflects broader economic changes and shifts in consumer behavior as individuals seek investment opportunities in real estate. The combination of low interest rates and a competitive housing market has further fueled this growth.
Market analysts suggest that the current trajectory indicates an ongoing boom in the condominium sector, with prices continuing to climb and investor activity remaining strong. As foreign investors seek to enter the Japanese market, local buyers may face increasing competition for desirable properties.
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