The average price of a new condominium in central Tokyo rose 18.5 percent in fiscal 2025 from the previous year to a record 137.84 million yen, reflecting soaring material costs and labor shortages, a research institute said Monday.
The prices could further rise in the months ahead, an institute official said, as Middle East tensions disrupt supplies of petroleum products to Japan, affecting construction of condos, and the weaker yen in line with surges of crude oil prices is set to drive up costs to import materials.
While the price topped 100 million yen for the third straight year in Tokyo’s 23 wards, the number of new condominiums listed for sale in the area decreased 6.8 percent to 7,708 units, the Real Estate Economic Institute said.
“The increase in prices reflect the supply of large-scale, high-rise condominiums in popular areas but also rises in construction costs,” the official said, noting that recent restrictions on labor hours have led to lengthy construction periods.
The official said the rate at which a purchase contract is concluded in the same month a condo is put on sale is decreasing in Tokyo’s 23 wards, in a sign consumers are becoming cautious about high prices amid rising interest rates that are driving up housing loan costs.
The average price in the country’s capital and surrounding areas rose 15.3 percent from the previous year to 93.83 million yen.
The number of condos supplied in the area fell 2.6 percent to 21,659 units, the lowest since fiscal 1973.
By prefecture, the price rose 7.0 percent to 63.06 million yen in Saitama, 21.8 percent to 68.28 million yen in Chiba, and 13.6 percent to 74.81 million yen in Kanagawa.
The average price in Tokyo outside the 23 wards increased 12.5 percent to 68.23 million yen.
© KYODO
