Japan’s average new condominium price reached a record high in 2024 for the eighth consecutive year, driven by rising construction costs and supply shortages according to a report released on February 26th by The Real Estate Economic Institute.
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The report, linked at the bottom of this article, revealed that the 2024 nationwide average new condo price climbed 2.9% from the previous year to ¥60.82 million.
All percentages below refer to 2024’s change from 2023.
The Greater Osaka (Kansai) region saw the sharpest increase, with prices surging 14.8% to ¥53.57 million.
Major regional cities also experienced significant gains, with Fukuoka City leading the way at a 40.1% year-on-year rise.
In contrast, the Greater Tokyo Area (GTA, which consists of Tokyo, Kanagawa, Chiba and Saitama prefectures) saw a 3.5% decline to ¥78.2 million, reflecting a decrease in high-end condo releases in the capital.
New condo supply dropped 8.6% nationwide to 59,467 units, falling below even 2020 levels during the COVID-19 pandemic.
The decline was particularly steep in the GTA, where supply fell 14% to 23,003 units. Labor shortages and stricter overtime regulations delayed construction, pushing some projects into 2025.
Looking ahead, nationwide supply is expected to increase by 4% in 2025, reaching 62,000 units, fueled by large-scale developments in Greater Tokyo and Osaka.
However, rising construction costs and challenges in securing land in central Tokyo are prompting more developers to shift their focus to regional markets.
“The supply shortage in regional cities is driving more developers to expand outside major metropolitan areas, and this trend is expected to continue,” the Real Estate Economic Institute stated.
Source & Further Reading:
2024 Japan Nationwide New Condo Average Price Report (Japanese only)
