Condo supply in greater Tokyo area declines 7.1 pct in the first half of 2015

The number of new condominiums put up for sale in the first half of 2015 in Tokyo and three other neighboring prefectures declined 7.1 percent from a year earlier, hitting the lowest level in six years, local media reported Tuesday.

The figure for Tokyo and Chiba, Kanagawa and Saitama prefectures, which was down to 18,018 units, reflected weakened demand amid rising prices, a research and consulting firm said.

The average unit cost rose to 52.56 million yen (about 425,900 dollars) in the reporting period, up 4.9 percent on yearly basis. "Developers held off as more people gave up purchases due to rising condominium prices," an official from the Real Estate Economic Institute said.

By area, supply dropped 3.3 percent in Tokyo's 23 wards while surging 42.5 percent in the remainder of Tokyo. The three surrounding prefectures all saw double-digit drops in supply.

In Osaka and five nearby prefectures in western Japan, the January-June supply of new condos climbed 16.0 percent to 10,102 units, with 72.3 percent of them sold. Endi