The average price of a new condominium in central Tokyo surged 96% in July from a year earlier, reaching a record 265.20 million yen (approximately $1.7 million), according to data released by a research institute on Thursday (August 14).
The sharp increase is primarily driven by escalating construction costs and land prices, alongside persistently high housing demand in the capital region. Central Tokyo, comprising the wards of Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Taito, is considered the hottest segment of Japan's real estate market, with numerous high-end projects launched over the past month.
Experts suggest the upward price trend may continue in the short term due to limited supply and strong purchasing power from high-income buyers, including foreign investors. However, the rapid pace of increases also poses challenges for middle-income residents' access to housing.
The figures come as the Japanese government closely monitors real estate market developments, following several consecutive years of rising home prices nationwide, especially in major urban centers like Tokyo and Osaka.
