Japan 2023 average new condo price hits record high for 7 yrs in row

TOKYO (Kyodo) — The average unit price of new condominiums across Japan hit a record for the seventh straight year in 2023 due to continued rises in construction material and labor costs, climbing 15.4 percent to 59.11 million yen ($392,500), a research institute said Wednesday.

In addition to rising prices in areas away from major cities, increased supplies of condominiums priced at 100 million yen or more in central Tokyo areas have contributed to pushing up the average, the Real Estate Economic Institute said.

Across the country, the number of condos sold dropped 10.8 percent to 65,075 units, declining for the second consecutive year, due to the increasing difficulty of acquiring land suitable for condominiums in urban areas, it said.

In Tokyo and the three neighboring prefectures of Kanagawa, Chiba and Saitama, the average unit price of new condominiums surged 28.8 percent last year to 81.01 million yen, while new condo supply dropped 9.1 percent, it said.

In 2024, nationwide unit sales are expected to grow 9.1 percent, with those in Japan’s three largest metropolitan areas centering on the cities of Tokyo, Osaka and Nagoya all expected to rise, it said.