Bloomberg News

Tokyo Condo Supply Posts Biggest Decline in Two Years

July 14, 2011

(Adds revision to annual forecast in third paragraph and prices in fourth.)

July 14 (Bloomberg) -- The number of condominiums offered for sale in Tokyo and surrounding areas in June had the biggest decline in more than two years following the country’s magnitude-9 earthquake and tsunami.

The number of new condominiums put on the market last month unexpectedly fell 33 percent from a year earlier, the Real Estate Economic Research Institute said in a report released in Tokyo today. Last time when the monthly data had a bigger decline was in March 2009 when it dropped 46 percent.

The institute lowered its annual forecast for apartments put up for sale to 45,000 units from 50,000 as some developers may delay sales of apartments due to a slump in the market.

The average price for apartments in the Tokyo region, which includes the surrounding prefectures of Saitama, Chiba and Kanagawa, fell 4.5 percent to 45.1 million yen ($567,000), today’s report showed.

The Topix Real Estate Index, measuring 44 property-related stocks, fell after the data was released and closed 0.7 percent lower as of the 3 p.m. close on the Tokyo Stock Exchange.

--Editors: Linus Chua, Malcolm Scott

To contact the reporter on this story: Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net; Kathleen Chu in Tokyo at kchu2@bloomberg.net

To contact the editor responsible for this story: Linus Chua in Singapore at lchua@bloomberg.net


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