The average price of new buildings in downtown is 1.18 billion KRW
Highest since statistics began in 1973
The price of newly built apartments (condos) in Tokyo, Japan, surged by 60% in the first half of this year. The average price of new apartments in central Tokyo in the first half of the year reached a record high of 130 million yen.
On the 21st, Japanese media such as TBS reported, citing data from the private market research firm Real Estate Economic Institute, that the average price of newly built apartments in central Tokyo in the first half of this year was 129.62 million yen (930 million dollars, 1.182 billion won). This represents a 60% increase in just the first half of the year and is the highest since the survey began in 1973. Experts predict that the upward trend may continue.
The average price of new mansions in Tokyo exceeded 100 million yen for three consecutive months from March to May. Tower mansions in Minato-gu, where many embassies are located, and Shinjuku-gu, home to major companies, as well as luxury mansions in Chiyoda-gu, where the Imperial Palace is located, drove up prices.
A representative from the Real Estate Economic Institute analyzed, "A small number of high-priced transactions in central Tokyo at the beginning of the year triggered a sharp price increase," adding, "Overall, the trend is a gradual rise."
Japan's real estate prices have suffered the worst slump since the real estate bubble burst over 30 years ago, but recently they have been on a strong upward trend thanks to rising labor and raw material costs.
There is also a reason why demand is increasing while supply is decreasing. Although wealthy Asians have started to show interest in Japanese real estate, the number of new housing units for sale in Tokyo in the first half of this year decreased by 9% compared to the same period last year.
Bloomberg reported that real estate buyers seeking to benefit from low interest rates and a weak yen are focusing on luxury housing developments, changing the market situation to be more demand-driven.
However, looking at the entire metropolitan area, the average price was 56.09 million yen, with a rise of only 3.5%. In some cases, house prices rose slightly or even fell. Kanagawa Prefecture recorded an average of 57.48 million yen, up 7.6%, but Chiba Prefecture saw a 0.8% increase to an average of 47.66 million yen. Saitama Prefecture recorded an average of 50.19 million yen, down 14.7%.
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