The average price of new condominiums put up for sale in Japan hit a record high for the ninth consecutive year in 2025, driven by soaring construction costs, Real Estate Economic Institute said Wednesday.
The average condo price climbed 7.8% from the previous year to ?65.56 million per unit, led largely by growth in the Tokyo metropolitan area, which accounts for nearly 40% of the total units.
In the metropolitan area, which comprises Tokyo and the neighboring prefectures of Kanagawa, Saitama and Chiba, the average price jumped 17.4% to ?91.82 million.
The average price slipped 0.5% to ?53.28 million in the Kinki region.
All properties nationwide have been affected by higher construction costs, an official at the institute said.
The average condo price rose 17.0% to ?60.22 million in Sapporo, where many high-priced units were put up for sale.
In contrast, the average price dropped 2.1% to ?57.66 million in Sendai, 11.4% to ?39.41 million in Nagoya, 2.3% to ?52.48 million in Hiroshima and 5.2% to ?53.05 million in Fukuoka.
The growing share of small units, driven by rising construction costs, contributed to the declines.
Although prices per square meter remained high, the increase in the supply of 30 square-meter to 50 square-meter compact units amid a decrease in the number of households, along with the rise in the supply of studio-type ¡°one-room¡± condos for investment, pushed down the average price in those cities.
Nationwide, the number of units put up for sale increased 0.8% to 59,940 units, marking the first rise in four years. Although the number fell 4.5% in the Tokyo metropolitan area, it grew 11.8% in the Kinki region.
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