Exciting high-end apartment market in Japan

Segment luxury apartment (mansion) in Japan is attracting customers, especially in central areas such as Tokyo and Osaka. Demand in this segment has even surpassed pre-COVID-19 levels.

According to Nikkei, the number of high-end condominiums sold across Japan in 2021 is 77,552 units, up 29.5 percent year-on-year, surpassing pre-COVID-19 levels.

Out of the total number of units sold in Japan, the Tokyo area is the area with a high number of successful apartment transactions with over 40% and an increase of 23.5% over the previous year.

Outside of Tokyo, high-end condominiums sold in urban areas in other places such as Hokkaido and Osaka all outperformed the previous year’s results.

The number of high-end condominiums sold throughout Japan in 2021 is 77,552 units.

Statistics of the Institute of Economic Research Real estate published in the Sankei newspaper showed that the increased demand also pushed up the price of high-end apartments. The average price for these apartments is 51.15 million Yen (about 10.2 billion VND), the highest ever.

In which, housing in the Tokyo area has the highest price, the average price per unit increased by 16.3% over the same period last year to 74.18 million Yen, especially high-end apartments in the central area. the average price is up to 96.85 million Yen/unit.

The reason for the high demand and price for the high-end apartment segment can be said to be the impact of both supply and demand factors.

The Mainichi newspaper quoted Mr. Yosuke Ohata – senior analyst at Mizuho Securities as saying, on the supply side, land prices in the central area have been higher due to increasingly limited land funds. Besides, the price of construction materials and labor prices have also continuously increased recently.

Regarding demand, this expert said that real estate in the city center with convenience and safety is always the first choice for homebuyers. Moreover, the demand to buy a home is also boosted with the trend of remote working as well as the loosening monetary policy of the Government, which keeps mortgage interest rates low.

Prices have increased but demand has not decreased. Experts believe that the high-end apartment market in Japan will continue to be active in the near future.

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