Condo supply logged second rise in row in ’11

Kyodo

The supply of condominiums on the market rose 2.2 percent to 86,582 units in 2011, posting a second consecutive year of gains, a private research agency said Thursday.

Nevertheless, the total was less than half the peak of 188,343 units logged in 1994 and remained below 100,000 units for the fourth consecutive year, the Real Estate Economic Institute said.

Nationwide supply rose mainly because jumps in Kyushu and the Chugoku region outweighed declines in the Tokyo metropolitan area and greater Osaka, it said.

By square meter, prices fell 2.5 percent to an average of ¥543,000, it added.

This year’s condo supply is expected to expand 15.5 percent to 100,000 units, the institute said.

In 2011, the supply leaped 29.5 percent in Kyushu and 52.7 percent in Chugoku but dropped 6.9 percent in the greater Osaka area and 0.1 percent in Tokyo.

The supply in the Tohoku region plunged 33.1 percent in the wake of the March 2011 earthquake and tsunami.