The average unit price of new condominiums put up for sale in Tokyo and three neighboring prefectures hit a record high for the third consecutive year in fiscal 2023, which ended last month, the Real Estate Economic Institute said Thursday.
The average condo price climbed 9.5% from the previous year to ¥75.66 million due to successive launches of high-priced condos and rising construction costs, the real estate research firm said.
In central Tokyo's 23 wards, the average condo price rose 5.7% to ¥104.64 million, topping ¥100 million for the first time on a fiscal year basis. Ultraluxury condos for the wealthy sold well, such as Mita Garden Hills in Minato Ward, which were priced at a maximum of ¥4.5 billion.
Tadashi Matsuda, a researcher at the institute, said condo prices are expected to remain on a moderate upward trend in fiscal 2024.
"High-priced condos remain popular and there is no reason for prices to decline," Matsuda said. There has been a limited impact from the Bank of Japan's decision last month to end its negative interest rate policy, he said.
In the three neighboring prefectures, the average price went up 12.6% to ¥61.45 million in Kanagawa and 11.9% to ¥50.67 million in Chiba, while Saitama saw its price fall 4.8% to ¥48.9 million.
The number of newly supplied condos has been on a downward trend in the Tokyo area, decreasing 6.4% to 26,798 units in fiscal 2023, its lowest level since fiscal 1975.
In March alone, the average unit price of new condos in the Tokyo area fell 46.9% from a year before to ¥76.23 million after a large number of condos was put on sale in the capital in the same month of 2023.