Central Tokyo average condo price up 96% to record high in July

TOKYO (Kyodo) -- The average price of new condominiums in central Tokyo reached a record high of 265.20 million yen ($1.7 million) in July, a 96% increase from the previous year, according to the Real Estate Economic Institute. The surge in prices is attributed to high construction costs and limited supply, as highlighted by an institute official. This marks the second time the average price has surpassed 200 million yen, following a peak of 217.5 million yen in March 2023.

The rise in prices is further fueled by the popularity of high-end, high-rise condominiums in Minato Ward and other areas. Despite the soaring prices, the official expects the average price to not remain above 200 million yen consistently, but acknowledges a moderate continuous upward trend due to soaring material costs.

The price of new condominiums in the greater metropolitan area, which includes Tokyo and its surrounding prefectures, also rose 63.7% in July, hitting a record 164.93 million yen. Sales of new condominiums in Tokyo and its neighboring prefectures of Chiba, Kanagawa, and Saitama climbed by 6.9% to 2,145 units in July.

In Kanagawa, the average price of new condominiums rose by 11.7% to 72.34 million yen, while in Chiba, it increased by 29.7% to 76.93 million yen. In contrast, the average price fell by 16.0% to 59.37 million yen in neighboring Saitama. Outside Tokyo's 23 wards, the average price of new condominiums in western Tokyo surged 87.9% to 105.59 million yen.