Monthly Report on Real Estate Circulation in the Kinki Region – September 2024
- 美怡 趙
- Sep 25, 2024
- 6 min read
The Kinki Region (近畿圏, Kinki-ken) refers to a geographical area in Japan, typically comprising the following seven prefectures:
Osaka, Kyoto, Hyogo, Shiga, Nara, Wakayama, and Mie.
The term "Kinki" originates from ancient Japan, meaning "the region near Kyoto," as Kyoto was once the political and cultural center of the country. As a result, this area has a rich historical background. Today, the Kinki region is a vital hub for Japan’s economy, culture, and tourism. Notably, the cities of Osaka, Kyoto, and Kobe form the core of this region.
This report is a monthly summary released by the Kinki Real Estate Information Network (近畿レインズ), a public interest incorporated association. It extracts and summarizes changes in the real estate circulation market in the Kinki region as of August 2024. By analyzing transaction volumes, new listings, and prices of second-hand apartments, second-hand detached houses, and land, the report provides insights into the latest market trends and supply-demand conditions both across the entire Kinki region and within its individual areas.
Number of Transactions for Second-Hand Apartments in the Kinki Region (Building Area: Below 350㎡) – August 2024
Transaction Volume
In August 2024, the number of second-hand apartment transactions in the Kinki region reached 1,190 units, marking an 18.9% year-on-year increase. This is the third consecutive month where transaction numbers have surpassed the previous year. Although transaction volumes decreased year-on-year in May 2024, they have consistently risen since, showing a 10.8% increase compared to August 2019, prior to the pandemic.
New Listings
In August 2024, the number of newly listed second-hand apartments in the Kinki region reached 5,248 units, representing a 12.3% year-on-year increase. This marks the 20th consecutive month of exceeding the previous year’s figures. While the growth rate of new listings has slowed since February 2024, the increase in August saw an expansion once again.
Price Per Square Meter of Second-Hand Apartments in the Kinki Region (Building Area: Below 350㎡) – August 2024
Transaction Price
The average transaction price per square meter for second-hand apartments in the Kinki region was 454,900 yen, marking a 5.9% year-on-year increase. This is the 14th consecutive month where the price has exceeded the previous year. Although the growth rate previously reached double digits, it has slowed since July 2024.
New Listing Price
The average price per square meter for newly listed second-hand apartments was 455,000 yen, showing a 1.3% year-on-year increase, marking the third consecutive month of growth. While the price of new listings has risen, the increase is slightly lower than that of the transaction price.
Market Trends for Second-Hand Apartments by Region (Building Area: Below 350㎡) – August 2024
Transaction Volume
Among the 12 main areas in the Kinki region, 8 regions saw an increase in transaction volumes compared to the same period last year, up from 6 regions in the previous month. Notable growth in transactions was observed in Osaka City, the Northern Osaka area, Kobe City, and the Hanshin area. These regions, being core markets for second-hand apartments, have seen increasingly active trading activity.
Price Per Square Meter
Out of the 12 main areas, 7 regions experienced a year-on-year increase in the price per square meter. Significant price growth was observed in Osaka City, other parts of Hyogo Prefecture, and Shiga Prefecture. In particular, Osaka City has seen its price per square meter rise for 14 consecutive months, reflecting strong demand for high-value properties.
Number of Transactions for Second-Hand Detached Houses in the Kinki Region (Land Area: 50-350㎡) – August 2024
Transaction Volume
In August 2024, the number of transactions for second-hand detached houses in the Kinki region reached 872 units, marking a 21.6% year-on-year increase and the third consecutive month of year-on-year growth. Compared to August 2019, the transaction volume grew by 36.9%, significantly exceeding pre-pandemic levels.
New Listings
In August 2024, the number of newly listed second-hand detached houses in the Kinki region was 3,907 units, reflecting a 23.9% year-on-year increase. This marks the fourth consecutive month where new listings have surpassed the previous year’s figures.
Prices of Second-Hand Detached Houses in the Kinki Region (Land Area: 50-350㎡) – August 2024
Transaction Price
The average transaction price for second-hand detached houses in the Kinki region was 23.92 million yen, reflecting a 6.9% year-on-year increase. This marks the second consecutive month of year-on-year price growth.
New Listing Price
The average new listing price was 26.67 million yen, showing a 2.6% year-on-year decline, marking the fifth consecutive month of decline. Despite rising transaction prices, the continued drop in new listing prices indicates sustained pressure on sellers in the market.
Market Trends for Second-Hand Detached Houses by Region (Land Area: 50-350㎡) – August 2024
Transaction Volume
Among the 12 main areas, 9 regions saw an increase in transaction volumes compared to the same period last year, 5 more regions than the previous month. Significant growth in transactions was observed in Eastern Osaka, Kobe City, the Hanshin area, and Kyoto City. Notably, Kyoto City has experienced year-on-year transaction growth for 8 consecutive months.
Transaction Price
In terms of prices, 9 regions recorded year-on-year increases. Substantial price growth was seen in Osaka City, Northern Osaka, Southern Osaka, the Hanshin area, and Kyoto City. Northern Osaka has seen continuous price increases for 7 consecutive months, while the Hanshin area and Nara Prefecture have recorded 5 consecutive months of price growth.
Number of Land Transactions in the Kinki Region (Land Area: 50-350㎡) – August 2024
Transaction Volume
The number of land transactions in the Kinki region was 570 units, reflecting a 25.3% year-on-year increase, marking the third consecutive month of year-on-year growth.
New Listings
The number of newly listed land properties was 2,782 units, showing a 12.9% year-on-year increase and the fourth consecutive month of growth. Despite an increase in land supply, the supply-demand relationship remains tight, with strong demand on the buyer side.
Price Per Square Meter of Land in the Kinki Region (Land Area: 50-350㎡) – August 2024
Transaction Price
The transaction price per square meter for land in the Kinki region was 154,300 yen, reflecting a 3.1% year-on-year increase, marking the first year-on-year rise in three months. It also increased by 7.8% compared to the previous month. As land transactions become more active, the transaction price has begun to recover, indicating strong market demand.
New Listing Price
The price per square meter for newly listed land was 154,200 yen, showing a 1.2% year-on-year increase, marking the second consecutive month of growth. Although the price for new listings continues to rise, the growth rate is slightly lower than the transaction price, suggesting that market supply is gradually stabilizing.
Market Trends for Land by Region (Land Area: 50-350㎡) – August 2024
Transaction Volume
Among the 12 main areas in the Kinki region, 11 regions saw a year-on-year increase in transaction volumes, with the exception of Shiga Prefecture. Northern Osaka has experienced five consecutive months of transaction growth, and several regions have recorded double- or even triple-digit growth, highlighting the rapid expansion of land transactions.
Price Per Square Meter
In 9 out of the 12 regions, the price per square meter saw a year-on-year increase. Significant double-digit growth was observed in Osaka City, Kobe City, other parts of Hyogo Prefecture, other areas of Kyoto Prefecture, and Wakayama Prefecture, indicating strong demand for land in these regions.
Supply and Demand Conditions in the Second-Hand Housing Market in the Kinki Region – August 2024
Analyzing the market’s supply and demand conditions based on the demand side of completed transactions and the supply side of newly listed properties, we look at the ratio of new listings to transactions and the price deviation rate:
Supply and Demand in the Second-Hand Apartment Market
In August 2024, the ratio of newly listed second-hand apartments to transactions was 3.96, with a price deviation rate of 6.6%. Although both transaction volumes and new listings saw significant growth, the growth rate of transactions slightly outpaced that of new listings, leading to a mild tightening in the ratio. The price deviation rate remained stable, indicating a relatively balanced supply and demand relationship in terms of pricing.
Supply and Demand in the Second-Hand Detached House Market
In August 2024, the ratio of newly listed second-hand detached houses to transactions was 4.05, with a price deviation rate of -12.2%. While both transaction and new listing volumes grew strongly, the transaction growth rate was slightly lower than that of new listings, resulting in a somewhat looser supply-demand ratio. In terms of pricing, as transaction prices continued to rise and new listing prices fell, the supply-demand relationship showed signs of tightening.
Concept Explanation
Price Deviation Rate (価格乖離率) refers to the degree of difference between the transaction price and the newly listed price, commonly used to assess the supply and demand conditions in the real estate market.
The formula for calculating the price deviation rate is as follows:
Price Deviation Rate = (Transaction Price − Newly Listed Price) / Newly Listed Price × 100%
In other words, the price deviation rate reflects the extent to which the transaction price deviates from the newly listed price:
Positive Price Deviation Rate: Indicates that the transaction price is higher than the newly listed price, suggesting strong market demand where buyers are willing to pay more than the seller’s initial asking price. This usually reflects a supply-constrained market.
Negative Price Deviation Rate: Indicates that the transaction price is lower than the newly listed price, suggesting weak market demand where buyers can close deals at prices below the seller’s initial asking price. This typically indicates a market with excess supply.
Reference: Public Interest Incorporated Association, Kinki Real Estate Information Network (近畿レインズ).
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