Central Tokyo Condos Approaching ¥100 Million on AverageEconomy
Buying a newly built condominium in the heart of Tokyo is an inaccessible dream for many. The Real Estate Economic Institute announced that the average price of condominiums in the 23 municipalities of central Tokyo in fiscal 2022 rose year-on-year by 17.2% to ¥99.0 million, bringing it close to the ¥100 million mark and reaching the highest level since 1990. This increase is thought to have been driven by demand from wealthy buyers, amid rising land prices and construction costs.
The average price of newly built condos in the Tokyo metropolitan area (Tokyo, Kanagawa, Saitama, and Chiba Prefectures) also increased by 8.6% from the previous year to ¥69.1 million, a record high for the second consecutive year. In this case, the rise was due to strong demand for housing, particularly by power couples from dual high-income households, and areas outside of Tokyo also saw steady increases: by 4.7% to ¥54.6 million in Kanagawa, by 4.2% to ¥51.4 million in Saitama, and by 3.3% to ¥45.3 million in Chiba. On the other hand, for the first time in three years, the number of condos being sold fell by 12.9% to 28,632. Disruptions to logistics during the COVID-19 pandemic meant that the supply of materials was affected.
The price of a newly built condominium in central Tokyo in March 2023 was ¥217.5 million, 2.7-times higher compared to the same period the previous year, while in the Tokyo metropolitan area it was ¥143.6 million, a 2.2-fold rise, and this was the first time that the prices had surpassed ¥200 million and ¥100 million, respectively. This was influenced by the large number of high-end property sales in central Tokyo in this time period.
(Translated from Japanese. Banner photo © Pixta.)