Japan’s New Condo Price Hits Record High in 2025

Tokyo, Feb. 25 (Jiji Press)–The average price of new condominiums put up for sale in Japan hit a record high for the ninth consecutive year in 2025, driven by soaring construction costs, Real Estate Economic Institute Co. said Wednesday. The average condo price climbed 7.8 pct from the previous year to 65.56 million yen per unit, led largely by growth in the Tokyo metropolitan area, which accounts for nearly 40 pct of the total units. In the metropolitan area, which comprises Tokyo and the neighboring prefectures of Kanagawa, Saitama and Chiba, the average price jumped 17.4 pct to 91.82 million yen. The average price slipped 0.5 pct to 53.28 million yen in the Kinki western region. All properties nationwide have been affected by higher construction costs, an official at the institute said. The average condo price rose 17.0 pct to 60.22 million yen in the northern city of Sapporo, where many high-priced units were put up for sale. In contrast, the average price dropped 2.1 pct to 57.66 million yen in the northeastern city of Sendai, 11.4 pct to 39.41 million yen in the central city of Nagoya, 2.3 pct to 52.48 million yen in the western city of Hiroshima and 5.2 pct to 53.05 million yen in the southwestern city of Fukuoka. The growing share of small units, driven by rising construction costs, contributed to the declines. Although prices per square meter remained high, the increase in the supply of 30-50 square-meter compact units amid a decrease in the number of households, along with the rise in the supply of studio-type “one-room” condos for investment, pushed down the average price in those cities. Nationwide, the number of units put up for sale increased 0.8 pct to 59,940 units, marking the first rise in four years. Although the number fell 4.5 pct in the Tokyo metropolitan area, it grew 11.8 pct in the Kinki region. END [Copyright The Jiji Press, Ltd.]