The number of newly built condominiums in the Tokyo metropolitan area sank 17% in fiscal 2024 compared to the previous year, with smaller property developers struggling to secure profits amid rising construction costs and difficulty acquiring land.
A total of 22,239 new condos went on the market in the region, which consists of Tokyo, Kanagawa, Saitama and Chiba prefectures, the Tokyo-based Real Estate Economic Institute said Monday. The number was the lowest since the institute began collecting data in fiscal 1973, it said.
The average unit price of new condominiums put up for sale in Tokyo’s densely populated 23 wards exceeded ¥100 million ($709,000) for the second straight year in fiscal 2024, Real Estate Economic Institute said Monday.
In the year ended March 31, the average price rose 11.2% from the previous year to ¥116.32 million, hitting a record high for the fourth consecutive year, reflecting increases in land prices and construction costs, including labor expenses.
Tadashi Matsuda, a senior researcher at the publisher of reports on the real estate sector, said that the high popularity of pricey condos, especially in Tokyo’s 23 wards, “shows no signs of waning.”
But he warned that concerns about possible economic stagnation in light of U.S. President Donald Trump’s tariff policy could affect consumer sentiment.
The average unit price of new condos in Tokyo and the neighboring prefectures of Kanagawa, Saitama and Chiba grew 7.5% to ¥81.35 million, also logging a record high for the fourth year in a row.
The average price climbed 20.5% to ¥58.93 million in Saitama, 10.6% to ¥56.04 million in Chiba and 7.2% to ¥65.87 million in Kanagawa.
In the same year, the number of newly supplied condo units fell 17.0% to 22,239, the lowest level since the company started conducting its survey in fiscal 1973, as construction starts continue to decline amid soaring costs.
Source: Nikkei Asia & Japan Times
