In Tokyo's 23 central districts, the average price of a new apartment has risen to 136.13 million yen (approximately $885,000).
Illustrative image - Photo: Bloomberg
According to the latest data released on January 26th by the Japan Institute of Real Estate Economics , prices for newly built apartments in central Tokyo have reached a record high over the past year, due to the continued rise in construction material and labor costs.
In Tokyo's 23 central wards, the average price of a new apartment has risen to 136.13 million yen (approximately $885,000). This marks the third consecutive year that the average price in the area has exceeded 100 million yen, representing a 21.8% increase compared to the previous year.
The upward trend in prices was not limited to the city center; it spread throughout the entire Tokyo metropolitan area, with an average increase of 17.4%, reaching 91.82 million yen, surpassing the 90 million yen mark for the first time in history. Specifically, Saitama Prefecture saw the strongest increase (15.8%), reaching 64.20 million yen.
In contrast to rising prices, the number of new apartments launched onto the market declined for the fourth consecutive year. In 2025, only 21,962 apartments were offered for sale in the metropolitan area, a 4.5% decrease from the previous year. This is a record low since data began being recorded in 1973.
However, experts predict a slight recovery in supply this year. Approximately 23,000 housing units are expected to be launched onto the market (a 4.7% increase), primarily concentrated in areas bordering Tokyo's 23 central wards.
Against the backdrop of soaring house prices, there are growing concerns that speculative buying by foreign investors is one of the main reasons driving prices up.
To control the situation, the Japanese government is considering implementing preventative measures, including requiring homebuyers to clearly declare their nationality when making transactions.