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- Rising land prices and construction costs are driving up condo sales prices.
- If the current environment persists, condo prices are likely to inch up, or at least stay flattish, over the next few years.
- While high land prices and rising construction costs are driving this upward trend, a reduction in borrowing costs has also accelerated price increases
Prices continue to rise amidst weakening contract rates
GRAPH 1 | Greater Tokyo Condo Supply, Developer Inventory And The Average Contract Rate, 2009 to 2018
Tokyo condos continue to see steady increases in capital values, despite declines in contract rates. The polarisation of markets is likely to deepen.
Savills Research & Consultancy