2010 condo supply up for 1st time in 5 years
The supply of condominiums in Japan in 2010 rose 6.4% from the previous year to 84,701 units, increasing for the first time in five years, backed by an economic recovery and incentives for housing loan borrowers, a research agency said Tuesday. The figure was less than half the peak of 188,343 units in 1994 and remained below 10,000 units for the third consecutive year, the Real Estate Economic Institute said.
While supply expanded 22.4% to 44,535 units in the Tokyo metropolitan region and 9.8% to 21,716 units in the greater Osaka region, other regions suffered a 21.3% decline to 18,450 units.
The Tokai and Chukyo region around Nagoya was the only other area to see growth with supply up 8.9% to 6,094 units.
Condo supplies grew in the three metropolitan regions as major condo developers focused marketing efforts there, while rural regions were affected by the failure of Anabuki Construction of Inc which had been strong in such areas, an institute official said.
This year’s supply is expected to expand 10.4% to 93,500 units, the institute said.
The average price of condos put on sale last year rose 5.8% to 40.22 million yen, topping 40 million yen for the first time in 19 years.
Photo credit: Chris 73 / Wikimedia