The average price surged 60 percent to ¥129.6 million ($930,000) from January to June 2023, according to the Real Estate Economic Institute, Co., which said it was the highest increase since records began.
“The overall trend of increasing prices will continue, though they won’t become this extreme,” Tadashi Matsuda, a senior researcher at the institute that has reported on sales since 1973, was quoted by local media.
There were almost 10 percent fewer new units on sale in central Tokyo during the same period and analysts explained that the record increase was caused mainly by a number of luxury units sold in early 2023, prompting the biggest increase since the Bubble era that ended in 1992.
In 2021, new condos in the Tokyo metropolitan area, which includes prefectures around the capital, started to achieve prices unseen since the Bubble era.
As well as the high cost of land in central Tokyo, sales of luxury developments suggested that wealthy residents’ lifestyles were changing as rich Asians diversify their investments to hedge their risks and move to Tokyo for the safer environment, convenience, value and better international schools.
The average price for condominiums in Tokyo and neighboring Kanagawa, Saitama, and Chiba prefectures grew 36.3 percent year-on-year to almost ¥89 million yen, the monthly report said.
