The residential complex Mita Garden Hills in Tokyo recently saw its first batch of units put on sale, including one priced at a staggering 4.5 billion yen, showcasing the trend of high-priced condominiums in Japan. Over the five-year period between 2019 and 2023, a total of 17,412 new condominiums priced at 100 million yen and up were sold across the country, according to data from real estate assessment firm Tokyo Kantei Co.
The sales figures reveal that the sales of super costly condo units during this period were 1.2 times higher than those in the asset-inflated economy era of 1988-1992, indicating a continued interest in luxury real estate in Japan. Tokyo led the way in terms of sales, with 13,429 units sold during this period, accounting for 2.4 times the number during the previous "bubble" economic boom, while 17 prefectures outside of Tokyo also experienced increased sales of high-priced condominiums. Okayama and Okinawa, in particular, saw significant growth in sales, with 100-million-yen apartments becoming a novelty in these regions.
Tokyo Kantei Co. also releases an annual price-to-income ratio for new apartments, indicating how many times the average annual income equates to the value of condos marketed each year. The latest data from 2023 showed that the apartment-income index exceeded 10 for the first time since measurements began in 2006, with the nationwide average income at 4.51 million yen and the condo-income indicator at 10.09. In Tokyo specifically, the average income and apartment index were 5.92 million yen and 17.78, respectively, underscoring the trend towards expensive real estate transactions in the capital.