Tokyo condominium value peaks at an astounding 130 million yen during the first half of the year.
In a significant development for the Japanese real estate market, the average unit price of new condos in Tokyo and its neighboring prefectures (Kanagawa, Saitama, and Chiba) has reached a record high of 89.58 million yen in the first half of 2025. This milestone marks the fourth consecutive year of price growth in the wider Tokyo area, surpassing the previous record set in Tokyo's 23 special wards in 2021.
The Real Estate Economic Institute Co. reported these findings, highlighting the continued growth in the region. The price increase in the wider Tokyo area is significantly higher compared to the 130.64 million yen average in Tokyo's 23 special wards in 2021.
Several key factors have contributed to this price surge. The demand for housing in Tokyo remains high due to its status as a major global city, attracting both domestic and international buyers. However, the supply of new condos has not kept pace with demand, leading to increased prices.
Japan's booming tourism industry, even pre-pandemic, contributed to increased interest and investment in real estate, particularly in central areas like Tokyo. This growth has supported higher property values. Ongoing redevelopment projects in Tokyo, such as those around major transportation hubs or in areas like Shibuya, have raised property values by improving infrastructure and amenities, making these areas more desirable.
Government initiatives to enhance infrastructure, such as the development of new transportation lines or public spaces, have increased the appeal and value of properties in these areas. The average land price in Tokyo Prefecture has been rising, reaching about 1.21 million Japanese yen per square meter in 2024. This increase in land costs directly affects the price of new condos.
Although Japan's inflation rate has eased, the economic environment remains stable, which can support higher property prices. The inflation rate, while not directly causing the price increase, reflects a broader economic stability that supports investment in real estate.
The record high average unit price of new condos in Tokyo and its neighboring prefectures from 2019 to 2025 can be attributed to these key factors. As these trends continue, experts predict that the price growth in the wider Tokyo area will persist in the coming years.
Photographers might find interested subjects in the booming real-estate market, particularly as the average unit price of new condos in Tokyo and its neighboring prefectures reaches record highs, spurring growth in the region. Conversely, investors looking for high-yield opportunities could consider allocating a portion of their finance towards real-estate investing in these areas, with experts predicting that the price growth in the wider Tokyo region will persist in the coming years.
