Photo/Illutration High-rise condominiums line the streets of the Kachidoki area in Tokyo. (Hiroshi Nakano)

In the first half of fiscal 2024, the number of new condominiums listed in Tokyo and three neighboring prefectures fell to a record low--8,238 units, a 29.7 percent drop from the same period last year.

This is the lowest number of new apartments listed in the April-to-September period since record-keeping began in 1973, driven by soaring land prices and labor shortages.

The amount of available apartments is even lower than in the first half of fiscal 2020, when the market was disrupted by the COVID-19 pandemic.

Data released by the Real Estate Economic Institute Co. on Oct. 21 shows that the average price of new condos in Tokyo’s 23 wards reached 110.51 million yen ($732,000), exceeding 100 million yen for the second consecutive year.

In Tokyo’s 23 wards, 3,242 new apartments were put on the market, down 42.9 percent from the same period last year, while the Tokyo suburbs outside the 23 wards saw a 24.8 percent decline to 714 units.

Saitama and Chiba prefectures also posted declines of around 30 percent, but Kanagawa Prefecture saw a 4.2 percent increase.

According to the institute, competition with hotels and other developments over land has driven prices up, making it harder to secure land for condominium projects.

As a result, the amount of new condo construction in Tokyo declined from last year to this spring.

Even when building does begin, labor shortages in the construction industry have extended the time needed to complete projects. With no foreseeable completion date, the properties have been unable to be put on the market, the institute said.

Rising material and labor costs have continued to push housing prices higher.

The average price of new condominiums listed in the Tokyo metropolitan area in the first half of the fiscal year increased by 1.5 percent from the same period last year to 79.53 million yen, setting a record high for the second year in a row.

Related News