In the residential market, sales prices continue to increase while supply volume declined due to construction costs remaining high and intensified competition for the land acquisition, and there continued to be a trend of polarization in salability based on the levels of the convenience of the regions and the properties themselves.
Condominium supply in the Tokyo region increased by 3.4% year-on-year to 37,132 units in the calendar year 2018. The contract number for the first month on newly marketed condominium units in 2018 decreased by 6.0 percentage points year-on-year to 62.1%.
In the office market, many deals were executed in connection with office expansion such as relocations for more space, opening of branch offices and the expansion of floor space within buildings, and declining vacancy rates and increasing rent revenue continued nationwide.
The office building vacancy rate in the five wards of central Tokyo declined by 1.02 percentage points as of March 31, 2019, improving to 1.78%. Average rent levels in the five wards of central Tokyo as of March 31, 2019 increased by 1,435 yen per tsubo to 21,134 yen compared to March 31, 2018.
In the real estate investment market, the total asset size of J-REITs was steadily expanded thanks to the increase of property acquisition accompanied by new listings and public offerings, and the appraisal of J-REITs as stable and secure investments not susceptible to the impact of international affairs was enhanced because of the favorable domestic real estate market conditions.
Expected yields on A-class office buildings in the Marunouchi/ Otemachi area remained at the same level year-on-year of 3.5% as of March 31, 2019.
* The content of this page is based on information included in the Financial Report 2019.