New detached house sales in the Tokyo metropolitan area fell by 2.7%

New detached house prices in the Tokyo metropolitan area fell 2.7% month-on-month to ¥59.87 million, according to data released on March 10 by Tokyo KANTEI (Shinagawa Ward, Tokyo). This is the first decline in three months. The main contributing factor was the price drop in suburban areas in addition to the 23 wards of Tokyo.

The survey covered newly built wooden detached houses (including land) with a floor area of ​​more than 50 square meters but less than 100 square meters, located within a 30-minute walk or 20-minute bus ride from the nearest station.

Prices in the 23 wards of Tokyo fell 4.6% month-on-month to ¥85.74 million (approximately RMB 3.7176 million), also the first decline in three months. The presence of high-priced properties in central Tokyo in January had a reverse effect in February, and a decrease in sales in the higher-priced southern and western areas (Shinagawa, Setagaya, etc.) further dragged down prices. The year-on-year increase fell below 10% for the first time in six months.

Prices in other major cities in the Tokyo metropolitan area also declined. Yokohama saw a 0.8% month-on-month decrease to 52.08 million yen (approximately 2.2586 million yuan); Kawasaki a 1.2% decrease to 56.8 million yen (approximately 2.4633 million yuan); Sagamihara a 4.3% decrease to 45.28 million yen (approximately 1.9637 million yuan); Chiba a 0.5% decrease to 41.7 million yen (approximately 1.8084 million yuan); and Saitama a 3.1% decrease to 55.21 million yen (approximately 2.3943 million yuan).

Sellers were forced to adjust prices as homebuyers were unable to afford the rising costs. Yuki Fujitani, a researcher at KANTEI in Tokyo, stated, “Despite the spring sales season and favorable factors such as the extension of housing loan tax breaks, prices have still fallen. This indicates that a large number of people with genuine housing needs are unable to afford the high prices.”

Prices for newly built detached houses in the Tokyo metropolitan area had been on an upward trend, but the attack on Iran has increased uncertainty regarding future price movements due to rising oil prices. Yuki Fujitani of Tokyo’s KANTEI stated, “Rising transportation costs and the prices of petrochemical products are the main factors driving up housing prices,” adding, “The increased cost of living due to rising prices is worrying, and the cooling of housing demand is a cause for concern.”