Demand for condominiums slows in Tokyo as Osaka gains momentum
Increasing supply of smaller and more affordable units pays off for developers in Osaka
Demand for condominiums in Osaka is growing, not just from wealthy people, but from family households, with the increasing supply of affordable rooms, in stark contrast to falling demand for property in central Tokyo.
The number of new condominiums listed for sale in Osaka, excluding single-room units provided as investment property, rose 6.4 per cent to 5,336 units last year, the second consecutive year of increase, according to data by the Haseko Research Institute.
The unit price in the city averaged 45.7 million yen (US$405,000), 31 per cent lower than in the 23 wards of Tokyo where supply dropped 20.1 per cent to 14,764 units, the lowest in a decade, the data showed.
Developers had successfully appealed to customers with affordability by offering more smaller units, she added.
A woman in her 20s has decided to buy a unit in a high-rise condominium near JR Osaka Station where the starting price is 37 million yen, relatively low for the area around one of the largest terminal stations in the central part of the city.
“I thought I wouldn’t lose money even if I decide to sell or rent,” she said.