The average price of a brand-new apartment released for sale across greater Tokyo in 2022 reached 62.88 million Yen, up 0.4% from 2021 and the highest level on record since 1990 when prices were 62.14 million Yen.

According to the Real Estate Economic Institute, a total of 29,569 new apartments were supplied for sale in 2022, down 12.1% from 2021, and less than a third of the record high supply of 95,635 units recorded in 2000. Supply was largely constrained by rising construction costs.

The first-month contract ratio was 70.4%, down 2.9 points from 2021 but sitting at the 70% line said to indicate healthy market conditions. 

The average sale price per square meter was 951,000 Yen, up 1.6% from 2021 and the 10th year in a row to see an increase. In Tokyo’s 23 wards, the average price was 82,360,000 Yen, down 0.7%, while the average price per square meter increased by 0.5% to 1,288,000 Yen.

Remaining inventory as of the end of December 2022 stood at 5,919 units, down 929 units from the end of 2021.

The most expensive apartment to go on sale was a three-bedroom, two-bathroom apartment in The Parkhouse Gran Sanbancho 26 on the eastern side of the Imperial Palace. The 237.69 sqm (2,558 sq.ft) apartment was priced at 1.158 billion Yen (approx. US$9 million at current exchange rates), which works out to around 4.87 million Yen per square meter. The average price across the building was around 3 million Yen per square meter. Completion of the building is scheduled for September 2024.

Although rising construction costs continued to push up pricing, demand from buyers remained strong throughout the year. The Institute believes there is a good chance that the average price across greater Tokyo rises further in 2023 due to the high cost of construction and an expected increase in the supply in the 23 wards. 

Source: The Real Estate Economic Institute, January 26, 2023.

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