Economy Tokyo rent and condo prices soaring

Average prices for new apartments in Japan's capital hit a record high in 2023, according to figures released Thursday by the Tokyo-based Real Estate Economic Institute, pushed up by the rising cost of land and construction. Prices of such properties in Tokyo's 23 wards, or districts, averaged 114.83 million JPY (USD 777,630), up 39.4% from a year earlier and topping 100 million JPY for the first time. The average price has rocketed 60.8% over the past five years.

In Tokyo's broader metropolitan area, which includes the three bordering prefectures of Kanagawa, Saitama and Chiba, average prices reached 81.01 million yen, up 28.8% from the previous year. Price hikes in Tokyo stood out particularly, with Kanagawa and Saitama rising just 11.2% and 13.1%, respectively. However, the number of units sold last year in the capital region fell 9.1% from 2022 to 26,886 -- the lowest since 1992. The percentage of contracts signed within one month of Tokyo apartments being marketed was 71%, exceeding the 70% level -- typically seen as a benchmark for robust sales -- for the first time in two years. Meanwhile, the equivalent percentages in Kanagawa and Saitama came in at 68.5% and 61%, respectively, shrinking from the previous year.

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Many luxurious properties in central Tokyo have been in high demand, catering to wealthy individuals such as executives and managers at major companies. Mitsui Fudosan Residential's 40-story condominium, Park Tower Nishi-Shinjuku, launched in April last year, sold out in 2023 despite the average unit price being around 140 million yen. The development's proximity to a key business district was a major attraction. Mitsui Fudosan Residential is also developing Mita Garden Hills, a project with around 1,000 units that cost more than 100 million yen, in Tokyo's Minato ward. "In recent years, there have been many large-scale projects within the 23 wards and central Tokyo," said a Mitsui Fudosan Residential representative.

Another interesting fact:

The number of affluent households with financial assets (excluding liabilities from real estate purchases) of 100 million yen or more climbed to 1.48 million in 2021, up 70% from 2005, according to Nomura Research Institute.

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Paywall alert:

Mita Garden Hills:

お知らせ｜三田ガーデンヒルズ｜【三井不動産レジデンシャル】新築マンション・分譲マンション・新築一戸建てなら三井のすまい

An increase of 40% in a year sounds like there's a lot of property being bought for investment because of the relatively low cost of property in Tokyo compared with other major capital cities.

A new apartment remarkable rise more than average price 100 million yen in Tokyo's 23 wards.
Who is the purchase?
[super J channel] (January 27, 2024)
■Is apartment remarkable rise ... anyone new the purchase?

The average prices per one of the sold new apartment exceeded 100 million yen with 114.83 million yen for the first time last year in Tokyo's 23 wards a year.

Outside of Tokyo's 23 wards and Kanagawa, Chiba, Saitama became the from 40000000 yen to 60000000 yen level.

The person of the town is ... for surpassing 100 million of the price of apartment.

Person (20 generations) resident in Saitama
"Too high ... I cannot but live in Saitama"

The couple who lives in the apartment of Chiba in twenties
Though "I think that you cannot buy it, I pay it to there and do not want to live in Tokyo"

Person (50 generations) resident in Aichi
When "it is not a very special person, you may not buy it"

On the other hand, such a voice is ..., too.

Person (70 generations) resident in Tokyo, Hiroo
"A neighboring room was how much 100 million and sold. I am popular highly if it becomes higher. I can enter the high-quality welfare institution in it if popular highly" and

What kind of apartment is an apartment of surpassing one house 100 million in Tokyo's 23 wards?

The year after next completion planned 58-story-above-the-ground apartment that construction advances from Tsukishima Station of Tokyo, Chuo-ku to at a place of a 5-minute walk. I start 145 sale on this month 9 for the first, and it is already said that most are engaged.

It is 170 million yen in an apartment of 2LDK. The skylounge where the 30th floor can spend the facilities for common use while enjoying a view of the Tokyo downtown area. A telework lounge for exclusive use of the remote work. The party room to be able to enjoy with a family and a friend is fully equipped with.

Sumitomo Realty & Development Toshinori Oda
"I have "Chuo-ku high-rise" sales point, and this Tsukishima is about 1.9 kilos in distance in a straight line to about 1.6 kilos, the Tokyo Station south exit to Ginza. The environment that can right enjoy a living of the downtown area"

What kind of person will buy it as expected?

Sumitomo Realty & Development Toshinori Oda
"Replacement by purchase visitor a company manager", "a power couple"

A doctor or a lawyer more than 20 million yen serve as asset operation, and household yearly income purchases it, and it is said that there is the case which a foreigner buys in an investment purpose under the influence of weak yen.

■Soaring apartment ... desire

Will the purchase of the expensive apartment have the desire for a person to be serious?

SUUMO Chief Editor Yoichi Ikemoto
It "is a center of the big city that rises suddenly (a price). This upward trend becomes gentle so as to go if I go to the suburbs or the district. Suburban core Station is more convenient than Omiya, Tachikawa, Funabashi, Machida, an oak go at the small Tokyo station when they say by a station name"

It is said that you should choose the place that is convenient for life without being particular about the Tokyo downtown area. It is ... that is more advantageous.

SUUMO Chief Editor Yoichi Ikemoto

On the other hand, huge composition city "Shiodome Sio-Site" built in the Shiodome district of the Minato, Tokyo Shimbashi Station east side becomes the ghost town.
It is a man "it is already a ghost town ghost town ..." for 30 generations of the Shiodome duty that talks so. "The depopulation" of commercial complex "Caretta Shiodome" of Tokyo, Shiodome advances. While after visiting the field, 64 store ぶんの space is to the floor map; 29 stores and half in the blanks. There was hardly the shop without the visitor in the situation to pour without all shops forming a line at the lunchtime.

The above man in 30s tells you, "companies introducing a telework increase by a corona evil, and there is not being full as the former business area in present Shiodome".


◆"Caretta Shiodome" ghost town in becoming it the tenant to half

According to realtor Lifull Co.'s market survey of listings, renting apartments targeted at families in Japan's capital now costs over 190,000 JPY (approx. USD 1,260) on average per month, while the average rent at single-oriented apartments in central Tokyo's 23 wards grew by 5.6% from the same month of the previous year to 94,694 JPY (about USD 630) in December 2023, with a surge in prices of new condominiums in central Tokyo having a knock-on effect.

Some factors behind rising prices for apartments in older buildings reportedly include a declining supply of new apartment buildings, making some buyers target old buildings, and the weaker yen, which has motivated buyers overseas to invest in Japanese properties. This sharp rise in property prices has been felt in the rental market. "Increased demand for rentals and higher sale prices have pushed up more rents," Lifull explained.

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According to Litfull, here's what you can do if you receive a notice about a rent increase from your landlord: according to the Act on Land and Building Leases, owners have the right to increase rent mid-contract if they have valid reasons, such as property tax hikes, economic circumstances (like rising costs of goods), or if they find that the rent is lower compared to similar properties in the area. Typically, these increases align with contract renewals. However, it's important to note that rent is a mutual agreement between the owner and the renter. You don't necessarily have to accept whatever the landlord demands. Lifull, a real estate company, advises the owner to provide a valid reason for the price increase. Before agreeing, carefully assess the basis for the increase and approach negotiations calmly and thoughtfully



In 2023, the average price of new condominiums offered for sale in Japan reached a record high of JPY 59.11 million, marking the seventh consecutive year of increases. This surge was driven by escalating costs for construction materials and labour and several ultraluxury properties in central Tokyo. The Real Estate Economic Institute anticipates that condominium prices will continue to rise due to ongoing cost pressures

In the Tokyo metropolitan area, which includes Tokyo and the neighboring prefectures of Kanagawa, Saitama and Chiba, the average price stood at JPY 81.01 million, up about 30%. In Tokyo's 23 wards, the average price soared about 40% to JPY 114.83 million, topping JPY 100 million for the first time. In the Kinki region, which covers Osaka, Kyoto, Hyogo, Nara, Shiga and Wakayama prefectures, the average price climbed 0.7% to JPY 46.66 million. Among major cities, Nagoya saw its average condominium unit price rise 14.5% to JPY 41.08 million, reflecting a decline in the supply of condominiums for single-person households. Meanwhile, the average unit price fell 0.8% to JPY 49.8 million in Sapporo, 0.7% to JPY 46.29 million in Sendai, 8.5% to JPY 40.76 million in Hiroshima and 5.5% to JPY 39.96 million in Fukuoka.

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In Tokyo's 23 wards, the supply of condominiums experienced growth due to the introduction of several large condominium projects. However, in many other regions, the supply declined. The research firm anticipates a 9.1% rebound in nationwide condominium supply, reaching 71,000 units in 2024. This increase is partly attributed to the release of additional large condominiums in Osaka. Interestingly, while condominium prices in central Tokyo continue to rise, there is an expectation of increased supply in suburban areas.

According to a recent survey by real estate consultancy Tokyo Kantei, the average price for new homes in Tokyo climbed 2.4% in February, reaching a record 78.59 million yen ($534,000). This rise is triggered by the demand for properties with convenient access to central Tokyo. The survey covered newly built detached houses in the city's 23 wards, on plots between 50 and 100 square meters, within a 30-minute walk or a 20-minute bus ride to the nearest train station.

Prices stabilized after peaking in August 2024—the highest since data collection began in 2014—but are trending upward again. Across Tokyo prefecture, average new home prices rose 1.5% from January, hitting a record 68.65 million yen.

Much of the increase came from areas like Shinagawa and Setagaya wards with convenient access to the downtown. "With condominium prices surging, relatively affluent households that might have chosen that option a few years ago are instead looking at houses in easily commutable areas," said a researcher at Tokyo Kantei. With costs rising for materials and labor, homebuilders are looking to limit supply to locations where they can pass on extra expenses to buyers. Throughout Tokyo, the supply of detached homes was down 24% in February compared with a year earlier. House prices were slower to rise in prefectures surrounding Tokyo. The average value in Kanagawa stood at 49.54 million yen, up 0.2% from the previous month. Saitama prefecture's average home price totaled 44.16 million yen in February, up 0.8% from January. House prices in Chiba prefecture dipped 0.1% to 44.85 million yen.

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Paywall alert:

Apartment rents are climbing in major Japanese cities like Tokyo and Osaka as more families move back into central areas, putting pressure on household budgets and reducing their ability to save for a future home. Between 2020 and 2024, average rent as a share of disposable income rose by 1 to 5 percentage points, now ranging between 18% and 34%. In Tokyo's 23 central wards, the figure has topped 30%. With condominium prices continuing to soar, an increasing number of households are turning to rentals, driving rents even higher.

One married couple in their 50s from Kanagawa Prefecture illustrates the challenge. They relocated there five years ago but now wish to return to central Tokyo. With a child, they want at least 70 square metres of living space. Yet in desirable locations, monthly rent exceeds 300,000 yen (about $2,000). Even with an annual income of over 10 million yen, they feel unable to manage such a high rent, given the costs of their child's education.

Real estate information services provider At Home calculated the ratio of average listed rents for family-style apartments -- those between 50 sq. meters and 70 sq. meters -- to the disposable income of working families with at least two people, using data from the Ministry of Internal Affairs and Communications. The company ran the numbers for Tokyo's 23 central wards, Osaka, Nagoya, Sapporo and Fukuoka. Compared with 2020, rent's share rose in all cities. During the COVID-19 pandemic that year, remote work drove demand for housing in suburban areas, softening rents in many urban centers. But as the pandemic has eased and people return to the office, city center rents are surging. Although wages have also risen, rents are climbing faster. In particular, rents for family-style apartments in Tokyo's 23 wards surpassed 210,000 yen per month, accounting for about 34% of income.

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Paywall alert:

thomas said:

Apartment rents are climbing in major Japanese cities like Tokyo and Osaka as more families move back into central areas, putting pressure on household budgets and reducing their ability to save for a future home. Between 2020 and 2024, average rent as a share of disposable income rose by 1 to 5 percentage points, now ranging between 18% and 34%. In Tokyo's 23 central wards, the figure has topped 30%. With condominium prices continuing to soar, an increasing number of households are turning to rentals, driving rents even higher.

One married couple in their 50s from Kanagawa Prefecture illustrates the challenge. They relocated there five years ago but now wish to return to central Tokyo. With a child, they want at least 70 square metres of living space. Yet in desirable locations, monthly rent exceeds 300,000 yen (about $2,000). Even with an annual income of over 10 million yen, they feel unable to manage such a high rent, given the costs of their child's education.



Paywall alert:

Tokyo rents soar past 30% of household income, squeezing families

More people choose to rent amid post-COVID surge in home prices

asia.nikkei.com

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It's difficult to feel much sympathy towards this Kanagawa couple. They have a reasonable but not outstanding combined income but want to live with the high rollers in central Tokyo and have plenty of space too. They'll just have to lower their expectations and live in the suburbs like everyone else.

The number of newly built condominiums in Tokyo has dropped to its lowest point in roughly three decades, as soaring land prices, higher construction costs, and speculative investment have pushed developers to concentrate on luxury properties with higher profit margins. At the same time, frustration has been growing among Tokyo residents over rising housing prices and rents, leading to calls for government action to bring vacant properties back into use.

According to figures from Tokyo Kantei, a real estate research firm, 11,226 new condominium units were placed on the market in the capital between January and September. While that slightly exceeds the 10,621 units supplied during the same period last year — a year that saw the lowest annual total in about 30 years — the current level still reflects a sharp decline, comparable to conditions last seen in the early 1990s.

In addition to rising land, material and labor costs, the speculative house buying, including by overseas investors, is leading developers to concentrate resources on luxury properties. "High costs are making it difficult to supply new condominiums at reasonable prices, resulting in development that effectively ignores the mass market," said Tokyo Kantei senior chief researcher Masayuki Takahashi. University of Tokyo professor Yasushi Asami said, "It's crucial to understand the real nature of the demand. If purchases are for investment purposes, it could result in 'ghost apartments' without any actual residents. That would threaten the stability of local communities."

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Office demand in Tokyo's business districts has increased so sharply that commercial projects are now absorbing land that was previously available for housing. Vacancy rates in the city's central wards continue to fall. As space for residential development shrinks, many would-be homebuyers are turning instead to existing properties or rentals, a shift that has driven rents sharply higher. Family-sized apartments, in particular, are in short supply, and average rents across Tokyo's 23 wards have risen by about 80,000 yen over the past three years to nearly 240,000 yen.

Paywall alert:

"they want at least 70 square metres of living space"

This has to be a joke, right? (Okay, I know it's not, but from the perspective of a prefectural capital, 70m2 is probably the smallest you could find.)

Locally, when browsing condos, I set the limit at (min) 90 or 100m2 or above. 70m2 might be okay for a single person.

Our house is ~130m2 (tho I'm not sure whether to inlcude a couple illegal additions I built). And that's for two of us, tho we did have a couple kids here once upon a time.

Here in Southern Maine , prices have gone crazy. A small apartment is 308,000Y a month or more plus utilities. Most homes are now above 1,60000000Y if you can find any for sale. It seems inflation is a beast that can't be beat.

johnnyG said:

"they want at least 70 square metres of living space"

This has to be a joke, right? (Okay, I know it's not, but from the perspective of a prefectural capital, 70m2 is probably the smallest you could find.)

Locally, when browsing condos, I set the limit at (min) 90 or 100m2 or above. 70m2 might be okay for a single person.

Our house is ~130m2 (tho I'm not sure whether to inlcude a couple illegal additions I built). And that's for two of us, tho we did have a couple kids here once upon a time.

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I think 70 m2 is reasonable for Tokyo. My apartment in Tokyo was a 2LDK which was about 40-45 m2. For one person it was plenty. But below me in the exact same layout was a couple with two young kids. My rent was Y250,000 which was about $2500 in those days.

Location matters. I asked ChatGPT:

Here are some comparative figures for residential prices per square metre in Tokyo versus Ishikawa Prefecture:

• In Tokyo, the average selling price for apartments is reported at around ¥1,483,122 per m² in central areas. Relocate.me+2E-Housing+2
• In Ishikawa, in cities such as Kanazawa, apartment prices for newer-builds have been estimated around ¥400,000 per m², and houses at approximately ¥238,000 per m² at their peak. propertyresearch.jp+1

These numbers show a very large price gap between Tokyo and Ishikawa, reflecting Tokyo's status as a high-demand urban area and Ishikawa's more regional, affordable market.

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mdchachi said:

I think 70 m2 is reasonable for Tokyo. My apartment in Tokyo was a 2LDK which was about 40-45 m2. For one person it was plenty. But below me in the exact same layout was a couple with two young kids. My rent was Y250,000 which was about $2500 in those days.

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Sorry guys my aged brain was off by $1000. I doublechecked and I was paying Y146000 which was about $1500 at that time. I found the unit but current rents aren't posted. Now I'm curious if the rent has risen much since then, 30 years later. Looks like the building was only about 5 years old when I lived there.

Suumo search results for units over 100m2 here.

Tokyo's metropolitan government has begun implementing plans to make housing more affordable for families struggling with the city's soaring rents. From the next fiscal year, starting in April 2026, it intends to create new housing through a public–private partnership valued at over 20 billion JPY (~130 million USD).

The scheme aims to offer rent levels roughly 20% below current market prices, with around 300 units to be rolled out in phases. Of the total funding, the city will contribute 10 billion JPY, while private investors are expected to provide a little more than that amount. To oversee the housing funds, Tokyo has chosen four lead groups, each headed by Nomura Real Estate Development, Mitsubishi UFJ Trust and Banking, Resona Real Estate Asset Management, and SMBC Trust Bank. Each consortium will bring together financial and property-sector partners to manage the programme.

Each housing fund will invest in both new and existing condominiums and detached houses. Priority will be given to families with children and single-parent households. The public-private partnership is the first funding scheme of its kind to provide affordable housing in a local government in Japan. Rents are climbing in Tokyo. In the city's central 23 wards, rent for condominiums averaged 4,809 yen per square meter in September, up 12% from a year earlier, according to real estate research company Tokyo Kantei. The supply of new condos in Tokyo is also shrinking, with only 11,226 units put on the market during the first three quarters of the year. That is higher than the 10,621 units logged a year earlier, but new offerings remain at lows not seen since the early 1990s.

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Paywall alert:

Everything's "rising", except salaries.

Reports said that the average price of a newly built condominium in central Tokyo in October was about 153 million yen, an increase of more than 18% compared with the same month last year and the second-highest figure ever recorded. Strong demand for high-end developments and the continued rise in land values were described as key factors, and the broader metropolitan average — covering Tokyo and the three neighbouring prefectures — was also said to have risen to just under 99 million yen. According to the Real Estate Economic Institute, prices were expected to keep climbing as more large-scale projects in sought-after districts come onto the market.

However, prices fell 5.6% to 64.01 million yen in Kanagawa Prefecture and 16.5% to 48.78 million yen in Chiba Prefecture.

The number of new condos listed for sale in Tokyo and the neighboring prefectures fell 28.2 percent to 1,316 units, the first decline since June. Within Tokyo's 23 wards, the number dropped 34.4 percent to 535 units. In western Tokyo, outside the capital's 23 wards, the average price for new condominiums rose 3.0 percent to 66.37 million yen. In neighboring Saitama Prefecture, it increased 6.9 percent to 61.56 million yen.

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thomas said:

Everything's "rising", except salaries.

Reports said that the average price of a newly built condominium in central Tokyo in October was about 153 million yen, an increase of more than 18% compared with the same month last year and the second-highest figure ever recorded. Strong demand for high-end developments and the continued rise in land values were described as key factors, and the broader metropolitan average — covering Tokyo and the three neighbouring prefectures — was also said to have risen to just under 99 million yen. According to the Real Estate Economic Institute, prices were expected to keep climbing as more large-scale projects in sought-after districts come onto the market.

However, prices fell 5.6% to 64.01 million yen in Kanagawa Prefecture and 16.5% to 48.78 million yen in Chiba Prefecture.

Central Tokyo condo price in Oct. tops 153 mil. yen, 2nd highest on record

The average price of a new condominium in central Tokyo in October rose 18.3 percent year-on-year to 153.13 million yen ($972,000), the second-highest level on record, a research institute said Thursday.

english.kyodonews.net

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I wonder why the prices increased in some prefectures around Tokyo but decreased in others. You'd expect increases all round as people are priced out of the city.

On a side note: 7.5% of condo buyers in central Tokyo reside overseas.

Officials familiar with the land ministry survey said that foreign purchasers of newly built condominiums in Tokyo were concentrating primarily on six central wards. Between January and June, properties in Chiyoda, Chūō, Minato, Shinjuku, Bunkyō and Shibuya showed that about 7.5% of buyers listed overseas addresses. The proportion dropped to 3.5% when looking at all 23 wards, and to 1.9% when the broader metropolitan region—including Kanagawa, Saitama and Chiba—was included.

While foreign speculative buying is often mentioned as one of the forces pushing condominium prices higher, ministry staff suggested that the survey pointed to a more localised effect, rather than a citywide trend. This was the ministry's first attempt to examine condominium ownership by drawing directly from registration records, and it intends to continue by reviewing short-term resales to see whether transactions are driven by demand or by rapid turnover. Government figures also indicate that the share of foreign buyers has begun to rise again in central Tokyo.

In 2024, the ratio of foreign buyers in the six central wards was 3.2%, down from an earlier peak of 5.3% in 2018. Other surveys in prefectures with large urban centers found overseas buyers made 2.6% of the purchases in Osaka, 2.3% in Kyoto and 0.4% in Aichi during the same six-month period. Amid concerns over speculative activity, the Real Estate Companies Association of Japan is preparing measures to prohibit resales of condominiums before handover. Developers will be able to cancel contracts and confiscate deposits if unauthorized resales are discovered.

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Almost one in ten units in significant new condominium developments sold in Tokyo during the first half of 2024 changed hands again within a year, a trend that has prompted the industry to look more closely at speculative activity. A new survey by the Ministry of Land, Infrastructure, Transport and Tourism counted 575 such resales of units measuring 40 square metres or more across the capital's 23 wards, a total that accounted for 9.9% of sales and was more than twice the share recorded for the whole of 2023. In previous years, the figure had stayed near two per cent.

The study also indicated that proximity to the city centre played a role. Across all developments, including smaller projects, 9.3% of newly built units were resold within 12 months, but the rate rose to 12.2% in the central wards of Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya.

Also on Tuesday, the Real Estate Companies Association of Japan (RECAJ) officially announced measures to curb speculative deals. These include barring the resale of properties before they are handed over to the initial buyer, as well as requiring that the same applicant name be used on all forms from the sale contract to registration. Limits will also be placed on the number of units that can be registered and sold through lotteries. Eight major players will implement these measures, including Mitsui Fudosan, Mitsubishi Estate and Sumitomo Realty & Development. Each company will decide what areas and properties to apply these rules to, along with the timing of their implementation. Mitsui Fudosan subsidiary Mitsui Fudosan Residential, which began selling condos in its Central Garden Tsukishima The Tower project this month, is banning buyers from reselling units before the official handover slated for March 2029.

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Paywall alert:

Not only new, but second-hand condos, too, are skyrocketing in price: Prices for pre-owned condominiums are climbing sharply, particularly across the greater Tokyo area, as the cost of newly built units continues to rise. In the capital region, the average price of a used condominium increased 6.3% from a year earlier to ¥52 million ($330,000) in 2025. The rise marked the 13th consecutive annual increase.

Unlike newly built apartment blocks, existing units are not directly exposed to surging construction costs. Yet their prices keep moving upward alongside the new-build market. How the two segments influence each other remains unclear.

A total of 35,000 pre-owned condominiums were sold in the Tokyo metro area in 2015 for an average price of 28.92 million yen, according to Real Estate Information Network for East Japan, which operates the Real Estate Information Network System (REINS). The number of contracts rose to 49,000 in 2025, with the average price swelling 1.8-fold to 52 million yen. During the same period, the average value of new apartments increased 1.7 times--a relatively moderate hike compared with that for pre-owned apartments--from 51.83 million yen to 90.55 million yen, according to statistics compiled by the research firm Tokyo Kantei Co. By price range, pre-owned properties purchased in 2025 carried a price tag of more than 100 million yen in 10 percent of all cases, with most of them located within the capital. Used apartments priced at upward of 100 million yen accounted for only 2 percent in 2019 in greater Tokyo before the COVID-19 pandemic.

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Looking at prices by prefecture, the picture is uneven. In Tokyo, the average price rose 10.1% year over year to ¥67.66 million. Prices moved in the opposite direction in neighbouring prefectures. Kanagawa fell 1.7% to ¥38.32 million, Saitama declined 2.2% to ¥29.10 million, and Chiba slipped 1.6% to ¥28.65 million. Those three prefectures had generally recorded price increases through 2024. In 2025, however, each posted a year-on-year drop.

Tokyo's surge was strong enough to lift the regional average despite the declines elsewhere. Across the capital region, prices rose overall, even though three of the four prefectures recorded annual falls.

They need to figure out how to move more business/industry outside of Tokyo so that everybody doesn't feel like they have to concentrate there.

thomas said:

Not only new, but second-hand condos, too, are skyrocketing in price: Prices for pre-owned condominiums are climbing sharply, particularly across the greater Tokyo area, as the cost of newly built units continues to rise. In the capital region, the average price of a used condominium increased 6.3% from a year earlier to ¥52 million ($330,000) in 2025. The rise marked the 13th consecutive annual increase.

Unlike newly built apartment blocks, existing units are not directly exposed to surging construction costs. Yet their prices keep moving upward alongside the new-build market. How the two segments influence each other remains unclear.



Looking at prices by prefecture, the picture is uneven. In Tokyo, the average price rose 10.1% year over year to ¥67.66 million. Prices moved in the opposite direction in neighbouring prefectures. Kanagawa fell 1.7% to ¥38.32 million, Saitama declined 2.2% to ¥29.10 million, and Chiba slipped 1.6% to ¥28.65 million. Those three prefectures had generally recorded price increases through 2024. In 2025, however, each posted a year-on-year drop.

Tokyo's surge was strong enough to lift the regional average despite the declines elsewhere. Across the capital region, prices rose overall, even though three of the four prefectures recorded annual falls.

Secondhand condos soar in price in greater Tokyo | The Asahi Shimbun: Breaking News, Japan News and Analysis

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I'm not sure what 'remains unclear' about the relationship between the two sectors.
If new apartments become much more expensive, more people will consider buying fairly new second-hand apartments in good condition, pushing up demand for such apartments and therefore prices. Such behaviour explains why there's a thriving market for second-hand luxury goods in Japan.

As the article says, there appear to be far fewer apartment blocks built these days. When I first came to Japan, the trains were full of adverts for apartment blocks. Now they are quite rare.