New Apartment Prices in Tokyo Metropolitan Area Reach Highest Level in 29 Years

[Asia Economy Reporter Jeong Hyunjin] The price of newly built apartments (mansions) in the Tokyo metropolitan area has reached its highest level in 29 years, Nihon Keizai Shimbun reported on the 23rd.

According to the report, the Japan Real Estate Economic Institute announced the apartment market trend results the previous day, showing that the average price of newly built apartments in the entire Tokyo metropolitan area last year was 59.8 million yen (approximately 637 million KRW), a 1.9% increase compared to the previous year. This is the highest level since 1990 (61.23 million yen), when the Japanese real estate market bubble peaked.

By region, central Tokyo rose by 2%, Saitama Prefecture by 4.8%, and Chiba Prefecture by 2.2%. The institute analyzed that the main reason for the rise in apartment prices in the Tokyo metropolitan area is the increasing demand for conveniently located urban apartments, especially among high-income dual-income households.

However, due to the rise in apartment prices in the Tokyo metropolitan area, sales performance has noticeably slowed. The institute stated that the number of newly built apartments sold in the Tokyo metropolitan area last year was 31,238 units, a 15.9% decrease compared to the previous year, falling below 35,000 units for the first time in 27 years.