Japan’s condo market sees demand uptick, both new and second-hand sales

Sales started on a luxury project not far from Shibuya station, with the most expensive one at JPY600 million 

According to Japan Property Central, Tokyo’s luxury condominium market has been surging amid the ongoing pandemic.  

This surge started with the 13 apartments released for sale by a luxury project not far from Shibuya Station in October. 

The most expensive apartment was listed at around JPY600 million (USD5.3 million), an estimated JPY3.6 million per square metre (USD2,950/square feet). The sales office has already gotten more than 1,200 inquiries.  

Back in January, another developer launched a new project for sale in Chiyoda Ward where the average apartment price was over JPY200 million (USD1.76 million). In the first six months, half of the apartments had sold out.  

Moreover, second-hand sales over JPY100 million have been reaching new highs, on top of the uptick in demand for new apartments.  

Based on data by REINS, apartments priced over JPY100 million represented 5.9 percent of total transactions in the Tokyo metropolitan area in Q3 2021. This is an increase from the 4.2 percent share in 2020 and a 2.1 percent share for the same period in 2016.  

Over the past two decades, the condominium market across Japan has seen major changes.  

More: New data reveals highs and lows in Japan’s land prices

In the greater Tokyo area, the annual supply of new condominiums across all price ranges is still sitting at about a third of the peak supply seen in 2000, while the average price has increased by around JPY20 million to JPY60,830,000.  

In Tokyo’s 23 wards, the average price of a new apartment is JPY77,120,000.