The streets of the Kachidoki area in Tokyo are adorned with high-rise condominiums, reflecting the real estate landscape in the region. However, in the first half of fiscal 2024, the number of newly listed condominiums in Tokyo and neighboring prefectures took a significant hit, plummeting to just 8,238 units, marking a substantial 29.7 percent decrease from the previous year. This notable decline is attributed to the challenges posed by soaring land prices, labor shortages, and fierce competition with hotels and other developments for land, making it increasingly difficult to secure locations for new condominium projects.
The Real Estate Economic Institute Co. recently released data showcasing the unprecedented low in the number of new apartments listed during the April-to-September period, a trend not seen since record-keeping began in 1973. With only 3,242 new apartments hitting the market in Tokyo's 23 wards, a stark decline of 42.9 percent from the same period last year, and a 24.8 percent drop in the Tokyo suburbs outside the 23 wards where only 714 units were listed, the scarcity of available properties has become a significant concern in the region. Furthermore, neighboring prefectures such as Saitama and Chiba also experienced declines of around 30 percent in new condominium listings, while Kanagawa Prefecture stood out with a 4.2 percent increase in listings, indicating variations in the demand and supply dynamics across different areas.