While the residential rental market in Tokyo remains sound overall, it has seen slight corrections since the pandemic. In contrast, prices of for-sale condominiums have continued growing over the past decade, and the average price for a new condominium in Greater Tokyo has reached a new high of JPY62.6 million – surpassing even the peak of the bubble era.

The for-sale condominium market in Tokyo has remained strong over the past few years. According to data from the Real Estate Economic Institute (REEI), 2021 contract rates1 in Tokyo prefecture were the highest they have been since 2015, despite the record high prices. These high prices are mainly attributed to increasing land prices and construction costs. For-sale condominium prices should be expected to remain high on the back of strong demand-pull and supply-push factors.

PRICES AND DEMAND-PULL

Condominium prices in Tokyo have seen notable increments due to strong demand. According to REEI, prices of new condominiums in Greater Tokyo hit all-time highs in 2021 after rising by 2.9% year-onyear (YoY), and prices in the 23W are also approaching record highs, currently standing at JPY82.9 million after increasing 7.5% YoY. Moreover, according to Real Estate Information Network Systems (REINS), the second-hand condominium market has also seen prices rise in tandem. In 2021, the average price of a second-hand condominium in Greater Tokyo was JPY551,700 per sq m – a 3.2% increment from the previous year.