Quarterly Report for Premium Condominiums in Tokyo | 3Q FY 2022

Dear Valued Customers:

 Thank you very much for your inquiry and business. We at International Dept. of Mitsui Fudosan Realty would like to share with you the trend in the high-end condominium market of central Tokyo here.

【Chart 1】

 This graph shows an index of changes in average contract price per tsubo (*Notes: 1. Indexation using average contract price per tsubo in 1Q / FY 2006 as 100. 2. Tsubo is a Japanese traditional unit of area equal to approx. 3.31sqm.) and the number of contracts concluded every quarter for premium condo. units in 7 prestigious areas of central Tokyo.

 Major economic events and Nikkei Stock Average are also shown for reference. The bar graph represents the number of contracts concluded each quarter. The red-line shows a movement in the index of average contract price per tsubo, while the gray-line shows one in the Nikkei stock average.

 In the 3rd quarter reviewed here (Oct. 1 thru Dec. 31, 2022 based on Japanese fiscal year), the index of average contract price per tsubo for premium condominium units sold went up sharply by 15.1 point QoQ to reach 192.6, hitting an all-time high since the beginning of data collection for seven quarters in a row. The number of contracts concluded in the same quarter turned upward significantly by 35 QoQ to 165.

【Chart 2】

 The chart above shows average contract price per tsubo. In this quarter, average contract price per tsubo went up in all the areas except for "Ichigaya / Yotsuya Area." Seven out of those eight areas excluding "Aoyama / Shibuya Area" recorded historical highs since the beginning of data collection. In case of "Hiro-o / Ebisu Area," and "Ginza Area," this is the third consecutive time to hit the record high. And in case of "Bancho / Kojimachi Area," and "Meguro / Shinagawa Area," this is the sixth consecutive time to do so.

【Chart 3】

 Now let's look at the chart above for number of contracts concluded. While the number declined in three areas, i.e. "Aoyama / Shibuya Area," “Ichigaya / Yotsuya Area,” and "Setagaya / Ota Area," and remained unchanged in “Hiro-o / Ebisu Area,” it grew in five other areas. Especially in "Shirokane Takanawa / Azabujuban Area," the number leaped by 19 cases QoQ to a record high since the beginning of data collection.

 In summary, there were many areas which set new records in average contract price per tsubo, and the number of contracts turned upward considerably. As far as buyer's objectives are concerned, while the number of properties bought for buyer's own residence is still on a downward trend, the number of properties bought as second-homes and investment is rising. Also inbound demand triggered by relaxation of immigration restrictions is coming back. From now on, it will be prudent to keep closely watching impact from large-scale developments and fluctuations in number of contracts concluded in each area, especially the volume of transactions at large and recently built properties, on top of the economic and financial situations including changes in interest rates.

 We hope this is helpful and are looking forward to another opportunity to serve you. Thank you and best regards,

International Dept. Mitsui Fudosan Realty Co., Ltd.
E-mail : tokyoproperty@mf-realty.jp
Phone : +81-3-6758-4019
Toll free (from Japan): 0120-599-321
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