Average Condo Price in Japan Hits Record High in 2022

The figure grew 0.1 percent from the previous year due to surging costs of construction materials chiefly reflecting the yen's weakening as well as an upward trend spurred by the popularity of properties located near train stations, the Real Estate Economic Institute said.

For 2023, the institute projected that the trend could accelerate amid high-end condo projects in Tokyo and surrounding areas.

In Tokyo and the three neighboring prefectures of Kanagawa, Chiba and Saitama, the average unit price of new condominiums was up 0.4 percent last year to 62.88 million yen (470,000 dollars), while new condo supply slipped 12.1 percent.

However, analysts said that current low interest rates on housing loans, which have supported demand, are likely to be affected by a potential policy shift at the Bank of Japan after a new governor takes over in April.

If floating mortgage rates rise, it could make people reluctant to purchase, said an official at a major real estate developer.

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