Quake shrinks Tokyo condo supply

Kyodo

New condominiums put on sale in Tokyo and three neighboring prefectures fell 0.1 percent to 44,494 units in 2011 as the disasters in March prompted suppliers to delay their release by about six months, a research institute said.

Compared with the previous year, the supply of new condos fell 4.8 percent to 19,405 units in Tokyo’s 23 wards and 29.6 percent in Chiba Prefecture to 3,458, but surged 23.6 percent to 4,262 in the rest of Tokyo, 12.8 percent to 11,495 in Kanagawa Prefecture and 5.1 percent to 5,874 in Saitama Prefecture, the Real Estate Economic Institute said Thursday.

Of all the units put on the market, 89.4 percent were sold in the year, dropping from 90.9 percent in 2010. The average price was ¥45.78 million, down 2.9 percent, or ¥1.38 million, from the previous year, after a rise in 2009.

For 2012, the institute projected that condo builders would offer 53,000 new units for sale in Tokyo and neighboring prefectures, 19.1 percent more than the previous year and possibly the first rise above the 50,000 line since 2007.

“The market is on track for recovery as the impact of the disasters has subsided,” an institute official said.