Overview

• The average price of new apartments in Tokyo surged 29% to a record high of ¥81 million ($548,000) in 2023, marking the third consecutive year of record prices.
• The price increase was driven by low supply, rising building costs, and an influx of foreign investors due to the yen's slide to a multi-decade low.
• Analysts predict that condo values will continue to rise in 2024 despite a slowing economy and the Bank of Japan's potential abandonment of its negative interest-rate policy.
• The average price of new apartments in Tokyo exceeded 100 million yen annually for the first time ever in 2023, with the average price reaching a record 114.8 million yen ($778,041).
• The surge in apartment prices is also being fueled by foreign buyers looking to shift funds out of China due to a real estate crisis and geopolitical concerns.