Real estate markets in major Japanese cities, particularly Tokyo, continue to show resilience and growth, with the average price of new condominiums remaining high. In Tokyo's 23 central wards, although there was a slight decrease in the average price of new condos in 2024 compared to the previous year, it still exceeded the 100-million-yen mark. This slight decline was attributed to a decrease in the sale of ultra-luxury units.
In other parts of Tokyo, like Kanagawa Prefecture, the average price of new condos saw a significant increase, reaching 64.32 million yen, a 6 percent rise. Similarly, Saitama and Chiba prefectures also experienced notable increases in average condo prices, with Saitama seeing a 13.8 percent rise and Chiba an 18.9 percent increase. These price hikes were mainly fueled by the escalating construction costs in these regions. Notably, Osaka witnessed a substantial surge of 45.7 percent in the average condo price, driven by the sale of ultra-luxury units in redevelopment areas north of JR Osaka Station.
Despite the overall positive trend in prices, the number of new apartments launched in Tokyo and its surrounding areas saw a record low, partly due to construction delays caused by a labor shortage. This slowdown in construction activities led to a decline in the ratio of new homes sold within the first month on the market, potentially signaling market challenges ahead. The Real Estate Economic Institute Co. points out that rising housing prices and the cost of living may dampen demand in suburban areas like Chiba Prefecture and Tokyo outskirts. While the market is expected to see continued price increases due to rising construction costs, concerns are raised about the sustainability of these price hikes for consumers in suburban regions.