New apartment price in Tokyo hits second highest level on record

The average price of a brand-new apartment in greater Tokyo (Tokyo, Kanagawa, Saitama and Chiba Prefectures) in the first half of 2022 has reached the second highest level on record.

The average price between January and June was 65,110,000 Yen, slightly below the record of 66,710,000 Yen seen in the first half of 2020. 

Property prices have been growing due to rising construction costs, further exacerbated by supply chain disruptions, but demand is being fueled by double-income households with higher purchasing power and low interest rates.

The average price increased by 1.5% from the first half of 2021. The supply dropped by 4.2% to 12,716 units. This is less than a third of the record high of 46,816 units supplied in the first half of 2000.

In Tokyo’s 23 wards, the price increased by 0.6% to 80,910,000 Yen, with an average price per square meter of 1,270,000 Yen. Saitama Prefecture saw the average increase by 19.4% to 58,870,000 Yen due to the release of large-scale high-rise towers that typically command higher prices. 

Remaining inventory at the end of June 2022 was 5,072 units, down from 6,395 units at the end of June 2021.

Source: The Real Estate Economic Institute, July 20, 2022.

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