Prices of single-family homes in Tokyo’s 23 ward fell 2.3% in May

The average expected sales price of small new single-family homes in May, published by Tokyo KANTEI, was 68.69 million yen (about 3.517 million yuan) per unit in Tokyo’s 23 district. It fell 2.3 per cent month-on-month to the lowest level in five months since November 2022. Some point out that the previous high price has caused buyers to disappear, and the tendency of housing developers to adjust prices as sellers has strengthened.

The targets of the survey are newly built houses with a floor area of more than 50 square meters and less than 100 square meters (including land), and within 30 minutes on foot or 20 minutes by bus from the nearest station. In urban areas with limited land area, small units are becoming mainstream in recent years.

The Tokyo area (Tokyo, Kanagawa, Saitama and Chiba prefectures) rose 0.4 percent to 52.79 million yen (about 2.703 million yuan). Among them, the Tokyo metropolitan area, including 23 districts, fell 3.2% to 63.59 million yen (about 3.56 million yuan). Kanagawa Prefecture fell 1.1 percent to 46.62 million yen, Saitama Prefecture rose 5.5 percent to 43.74 million yen, and Chiba Prefecture rose 2.8 percent to 45.26 million yen. In Saitama, the strong price setting stands out due to its relatively low prices compared to Tokyo Douchi.

The Kinki region was basically flat at 38.73 million yen (about 1.92 million yuan). The central area was 39.44 million yen (about 201.8 million yuan), up 1.4 percent.

Tokyo KANTEI data show that in the 23 district, more supply in Setagaya ward, Suginami-ku and Nerima-ku and other peripheral areas, there are cases of price cuts without much change in lot conditions. Analysts say that housing developers have lowered the sale price to ensure sales volume. Takeshi Ide, senior senior researcher at the company, pointed out that “although there may be a small rebound, the downward trend may continue.”