The average price of a new condominium in central Tokyo surged by 18.5 percent in fiscal 2025 compared to the previous year, reaching a record 137.84 million yen, according to the Real Estate Economic Institute [1]. This marks the third consecutive year that prices have exceeded 100 million yen in Tokyo's 23 wards [1]. The increase is attributed to soaring material costs, labor shortages, and the supply of large-scale, high-rise condominiums in popular areas [1].
Supply constraints are evident, with the number of new condominiums listed for sale in Tokyo's 23 wards decreasing by 6.8 percent to 7,708 units [1]. Across the capital and surrounding areas, the average price rose 15.3 percent to 93.83 million yen, while the number of condos supplied fell 2.6 percent to 21,659 units—the lowest since fiscal 1973 [1]. By prefecture, prices increased 7.0 percent in Saitama (63.06 million yen), 21.8 percent in Chiba (68.28 million yen), and 13.6 percent in Kanagawa (74.81 million yen). In Tokyo outside the 23 wards, the average price rose 12.5 percent to 68.23 million yen [1].
Market dynamics are being further influenced by external factors such as Middle East tensions, which are disrupting supplies of petroleum products to Japan and affecting construction, as well as a weaker yen and surging crude oil prices that are driving up import costs for materials [1]. An institute official indicated that prices could rise further in the coming months due to these pressures [1].
Consumer caution is increasing, as evidenced by a declining rate at which purchase contracts are concluded in the same month a condo is put on sale, reflecting concerns about high prices and rising interest rates that are pushing up housing loan costs [1].
CONCLUSION
Central Tokyo's condominium market is experiencing record-high prices driven by rising construction costs, supply shortages, and external economic pressures. With supply at historic lows and consumer caution growing amid higher interest rates, the market faces significant headwinds, and further price increases are possible in the near term.