Central Tokyo Condo Price Tops 100-M Yen For 1st Time

The average price of new condominiums released last year in central Tokyo topped 100 million yen ($677,000) for the first time, driven by luxury properties and soaring construction material prices, a real estate research firm data showed, as reported by Kyodo News.

The trend of increasing prices comes on the back of low-interest housing loans after the Bank of Japan launched large-scale monetary easing in 2013.

The price shot up 39.4% from the previous year to 114.83 million yen per unit in the capital's 23 wards, the Real Estate Economic Institute said.

The average price of new condos in the capital and the three surrounding prefectures of Chiba, Kanagawa, and Saitama also climbed sharply, rising 28.8% to 81.01 million yen for the fifth straight year of increase, Mainichi Japan also reported.

"There was an explosive rise of dwelling units exceeding 100 million yen in 2023," an official of the research firm said.

The trend of increasing prices comes on the back of low-interest housing loans after the Bank of Japan launched large-scale monetary easing in 2013, while the supply of condominiums has fallen as suitable land to build condominiums decreases.

One notable trend last year was purchases by buyers from double-income households with high earnings, according to the institute.

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