The Tokyo condominium market experienced a record low growth last year, as the number of new units coming on the market decreased significantly. According to the Real Estate Economic Institute, the Tokyo region saw only 23,003 new condominiums introduced, marking a 14% decline from the previous year. This data, released on Thursday, highlights a concerning trend for potential buyers in the area, including central Tokyo.
The Real Estate Economic Institute, which closely monitors industry trends and developments in the Tokyo region, revealed that this minimal increase in new condominiums is the smallest volume recorded to date. The scarcity of new units has had a noticeable impact on the market, particularly in the resale sector. One key example is the Mita Garden Hills development in central Tokyo, where units are in high demand and have seen significant price hikes.
The rising prices at Mita Garden Hills are directly linked to the limited availability of new condominiums. With fewer options available, prospective buyers are turning to the resale market, driving up competition and consequently, prices. The Mita Garden Hills development is a sought-after location, further compounding the demand and contributing to the price surge.
This shortage of new units is not just an isolated issue but reflects a broader trend across the Tokyo region. The Real Estate Economic Institute's data serves as an important tool for understanding these dynamics and highlights the challenges facing both buyers and developers in the area. The institute's findings underscore the pressing need for increased development to meet the growing demand for condominiums in Tokyo.
Leave a Reply