Average Tokyo Condo Price Tops ¥100 Million

Yomiuri Shimbun file photo
The cityscape of Tokyo

TOKYO (Jiji Press) — The average unit price of new condominiums put up for sale in central Tokyo came to ¥105.72 million in April-September, exceeding the 100 million yen line for the first time on a fiscal first-half basis, a private think tank said Wednesday.

The figure for the densely populated 23 special wards in the Japanese capital was up 36.1% from a year before, Real Estate Economic Institute Co. said. The previous record high was ¥95.55 million, set in April-September 1991, when Japan was still in the asset inflation-driven bubble economy.

The result for the first half of fiscal 2023 reflected jumps in construction materials and land prices, and in labor costs.

In addition, large-scale ultraexpensive condos targeting wealthy people were launched in Minato and Shinjuku wards. In Minato Ward, the Mita Garden Hills and the World Tower Residence condominiums, in which the cheapest units are priced above ¥100 million, went on sale.

The average condo price in the whole of Tokyo and three neighboring prefectures — Kanagawa, Saitama and Chiba — soared 23.7% to a record ¥78.36 million, backed by the popularity of high-priced condos near train stations among double-income couples. The previous record high was ¥67.02 million, logged in the first half of fiscal 2021.

The average price climbed 5.4% in Kanagawa and 7.7% in Chiba, but fell 12.1% in Saitama, where many expensive condos were put up for sale a year before.

The think tank also said that the number of new condos released in the greater Tokyo area in the first half of fiscal 2023 fell 4.6% to 11,712 units, down for the second straight year.

Condominium developers are curbing supply while assessing buyer demand at a time when the tough business environment is forcing them to pass on higher costs to prices.

“[Prices] are expected to continue rising moderately as a trend” due to higher materials costs, an official of the research institute said.

More releases of ultraexpensive condo units are expected in central Tokyo, possibly pushing average prices further up, the official added.