The average price of a new condominium in central Tokyo rose 11.2 percent in fiscal 2024 from the previous year to a record 116.32 million yen, topping 100 million yen for the second straight year amid soaring material and labor costs, a research institute said Monday.
The number of new condominiums listed for sale in Tokyo's 23 wards, meanwhile, plunged 25.5 percent to 8,272 units, affected by overtime restrictions placed on construction sites since April last year.
Amid soaring prices, sellers are continuing to target wealthy buyers by offering properties in convenient locations, such as near major railway stations.
The average price in the country's capital and surrounding areas rose 7.5 percent from the previous year to 81.35 million yen, shattering the previous high for the fourth straight year.
The number of condos supplied in the area fell 17.0 percent to 22,239 units for the third consecutive year of decline.
By prefecture, the price rose 20.5 percent to 58.93 million yen in Saitama, 10.6 percent to 56.04 million yen in Chiba, and 7.2 percent to 65.87 million yen in Kanagawa.
Average prices rose across all six regions, including Tokyo's 23 wards and surrounding prefectures, according to the data.
"It becomes increasingly difficult to sell properties in the suburbs as public awareness to sustain daily living has heightened amid rising prices," an institute official said, adding condo prices will likely remain high for a while due to rising costs.
The average price in Tokyo outside the 23 wards increased 13.2 percent to 60.67 million yen.
© KYODO
22 Comments
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TokyoLiving
If you want a house in central Tokyo, one of the best neighborhoods in the world, you have to pay the price..
marc laden
I think Trump tariff is the reason behind this price increase ... According to AP and MSNBC because of Trump tariff all the cost of living and price of apartments sky rocketed ... I believe every thing they says and I am sure the tokyo price increase also because of Trump .... I feel satisfied this morning ..
Jay
Well, congrats to those people on their ¥100 million shoebox in the sky. Yep, they've definitely ‘made it’ by mortgaging their souls for 60 square meters and a view of their neighbor’s laundry.
But hey, at least they're only a 3-hour train ride from nature.
sakurasuki
While people salary in Japan stuck in the same number, that's really some achievement.
HappySmiles
These are fiscal 2024 prices. Trump’s tariffs were imposed in fiscal 2025.
Many of these new central Tokyo apartments are investment properties, purchased with the intention of generating rental income, often from expats. 70-90 sqm is common.
I used to live in one. Modern furnishings. Twenty-first floor. Lovely views. Always kept my curtains open. Convenient to everything. Large parks here and there. Nature trails: about an hour away.
factchecker
Great news
Yrral
Lots of Japanese condos are not like Americans,some have swimming pools in their high rise ,24/7 security,private parking spots, ATM machine, grocery stores and some have Starbucks in them
Jay
Fair enough - but turning livable space into investment vehicles doesn’t make it any less dystopian. Whether it’s 50 sqm or 90, the over-urbanization of Tokyo has turned it into overpriced pressure cookers where people pay premium prices to live stacked on top of each other like TETRIS blocks.
Homes being scooped up not to live in, but to milk rent from expats and inflate portfolios? Cool. But should housing really be a speculative asset class? I think it should be a foundation for stable, dignified living. When shelter becomes just another hustle, everyone loses in the long run.
Blacklabel
Nope, never a tower mansion.
a house, with a yard and far away neighbors.
diobrando
High cost in everyhing, not eco friendly....much better a house.
HappySmiles
In complete agreement.
Would a 200-unit apartment complex be less eco-friendly than 200 separate homes?
HopeSpringsEternal
Condo prices great for Govt. tax revenues, but upon selling your condo and buying something, say food, energy, metals, diversified commodity index...You can now buy Approx. 5x LESS than 5yrs ago, Congrats!!!!
HopeSpringsEternal
Japan's become incredibly poor as Yen now buys 5X LESS real assets than 5 years ago, so if your Condo doubled in value in last 5 years, can buy only 2.5X Less, so you're "lucky", however, the Govt is VERY $Happy!!!
WoodyLee
Who would wont to pay this much for living in a tower filled with SMOG and filthy air?
NZ
its a market economy and market price.
as there is high demand-there is a high price too.
Tokyo or Sydney.all same thing.
Mr Kipling
This is a little misleading, if there were a bunch of Ferraris and Bentleys bought last year the average price of cars sold would have gone up. But your 8 year old Honda would not be worth more. Just as the sale of luxury new condos in Setagaya doesn't have a great effect on the value of a skybox in Akabane. Please compare like with like. What is the change in value for an 80m2 used condo in Setagaya from 2023 and 2024?
SDCA
what scares me more is how much is the average management fee (管理費), maintenance fee (積立金), parking fee? Money you will not get back with equity. This on top of your mortgage which at 35 years with no down payment should be roughly 300,000 yen per month with an interest rate just below 1.0.
Assuming the monthly fees for the 116.32 million yen manshon will be:
Management: 35,000 yen
Maintenance: 30,000 yen
Parking: 30,000 yen
This adds up to a total of close to 400,000 yen per month. Going by the philosophy of your mortgage not exceeding 30% of your income, the household income should equate to about 16 million yen annually. How many households earn this much?
https://www.statista.com/statistics/1329982/japan-average-monthly-gross-income-working-household-tokyo-prefecture/
藤原
Living in Japan for over 19 years. I have never been interested in Tokyo or the Kanto region. I would never live in an overly priced high rise to a building that amounts to a luxury plattenbau in Japan.
SDCA
A great example of paying a whole lot for nothing:
https://www.m-standard.co.jp/buildings/2015/buy/17656/
To live here in a 13 year old manshon with nothing really special going for it other than accessibility to the train station says monthly mortgage plus fees will total 416,532 yen with a very generous variable interest at 0.475% and a 35 year mortgage. Funny thing is, most people who are young enough to do a 35 year mortgage do not earn enough to afford this 60㎡ 2LDK manshon nor do they qualify for a 0.475% interest.
descendent
It's not misleading at all. Akabane is part of Tokyo, and this is reflecting average prices increases of new builds across ALL of Tokyo. You can certainly choose to narrow your area to a single ward or a single neighbourhood even, but then it starts getting less useful to assess broader economic trends.
Seigi
Chinese buyers are the saviors of Tokyo fudosan.
grc
You can see how skewed the Tokyo (and by extension the nationwide) CPI is when an 11.1% rise in real estate and a 92% rise in rice prices still leave the overall index around 4%. Still, we may being seeing the peak in condo prices as the Nikkei comes crashing back to reality.