Tokyo-Area Condo Price Hits Record High in 1st Half

TOKYO (Jiji Press) — The average unit price of newly supplied condominiums in the greater Tokyo area in January-June reached the highest level for the six-month period due to rising material and labor costs and higher land prices, Real Estate Economic Institute Co. said Thursday.

The average price of new condos put up for sale in Tokyo and its three neighboring prefectures of Kanagawa, Saitama and Chiba surged 36.3% from a year earlier to ¥88.73 million.

Condo demand remained strong mainly among dual-earner households with high incomes. Condo prices “are expected to keep rising moderately” in the second half of 2023, the institute said.

The average price of new condos in the Japanese capital’s densely populated 23 wards jumped 60.2% to ¥129.62 million, exceeding ¥100 million for the first time, as condos with an average price tag of over ¥200 million were released in Minato Ward.

The previous high in the 23 Tokyo wards was ¥97.38 million marked in 1991, toward the end of Japan’s bubble economy.

The average price was up 7.6% at ¥57.48 million in Kanagawa and 0.8% at ¥47.66 million in Chiba. On the other hand, the average price fell 14.7% to ¥50.19 million in Saitama where large apartment complexes were released last year.

In the first six months of this year, the number of new condos released in the greater Tokyo area dropped 17.4% to 10,502 units, hitting the lowest level since 2020, when sales activity was halted due to the COVID-19 pandemic. Condo developers limited supply to assess demand.