The average unit price of new condominiums put up for sale in Tokyo's 23 special wards in fiscal 2025 hit a record high of ?137.84 million, reflecting rising construction costs and supply shortages, Real Estate Economic Institute said Monday.
The figure rose 18.5% from the previous year and exceeded ?100 million for the third straight year.
The average price of new condos in the Tokyo metropolitan area, which comprises the whole of Tokyo and the neighboring prefectures of Kanagawa, Saitama and Chiba, climbed 15.3% to ?93.83 million, also a record high. More large-scale properties were provided in areas easily accessible from central Tokyo, pushing up the average price.
The average price rose 13.6% to ?74.81 million in Kanagawa, 7.0% to ?63.06 million in Saitama and 21.8% to ?68.28 million in Chiba.
Condo prices may climb even further as tensions in the Middle East are making it difficult to procure oil-derived products, leading to price increase for and shortages of housing equipment and materials. Toto has been forced to suspend new orders for prefabricated bathrooms.
"It's difficult to predict future prices, but all factors point to an increase," said Tadashi Matsuda, a senior researcher at the think tank.
The number of new condo units supplied in the greater Tokyo area in the fiscal year that ended in March fell 2.6% to 21,659, reflecting the lack of available land. This was the lowest figure since data became available in fiscal 1973.
In March alone, the average new condo price in the Tokyo metropolitan area dropped 0.7% from a year earlier to ?104.13 million, still staying above ?100 million for the second month in a row. The average price in the 23 Tokyo wards inched up 0.6% to ?150.23 million.
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