Prices for New Tokyo Condos Hit New Record in 2025

Prices for new condominiums in Tokyo reached new heights last year.

The average price for a new condo for sale in Tokyo and the surrounding areas rose 17 percent last year to ¥91.8 million ($597,810), Bloomberg reported, citing new data from the country’s Real Estate Economic Institute. Prices dipped slightly in 2024 after five consecutive years of growth.

The average prices for new condos in central Tokyo rose about 22 percent last year to ¥136 million ($885,502), according to the report. The number of new condos listed for more than ¥100 million ($651,137) surged 55 percent. The most expensive unit for sale last year was a ¥2.5 billion ($16.3 million) residence at the Brillia Tower Nogizaka complex.

Increasing construction costs, constraints on supply and more expensive luxury apartments hitting the market have combined to raise the average new condo sale price. Home values across the city have been on an upward trend as the yen’s weakened value increases the costs of imported raw materials and a labor shortage drives up construction expenses. The supply of new units in the Tokyo metro area declined 4.5 percent last year to the lowest point in more than half a century, according to the Real Estate Economic Institute report.

Unlike office developers, which have increasingly looked to Tokyo’s outer wards as rents climb higher, residential builders are doubling down on areas in the heart of the city.

“Developers are focusing on central locations where they can sell luxury condos and justify the pricing,” Zoe Ward, chief executive officer of brokerage Japan Property Central, told Bloomberg. “A lot of their inputs will be construction costs and land pricing.”

The Bank of Japan has raised interest rates, which hasn’t helped in lowering home prices. Affordability for locals and speculation by overseas buyers have become bigger concerns for officials, prompting new Prime Minister Sanae Takaichi to ask government ministries to implement new ways to monitor foreign investments, such as asking international buyers to declare their nationality when purchasing property.

— Chris Malone Méndez