The average unit price of new condominiums across Japan hit a record high of 51.21 million yen ($382,000) in 2022, topping the previous record for the six straight year due to soaring costs of construction materials, a report by a research institute showed Tuesday.
The price, up 0.1 percent from the previous year, also reflects an upward trend fueled by the popularity of properties located near train stations, the Real Estate Economic Institute said.
The trend could accelerate in 2023 amid high-end condo projects in Tokyo and surrounding areas as well as a growing number of dual-income households, an official of the institute said.
But analysts say that current low interest rates on housing loans, which have supported demand, are likely to be affected by a potential policy shift at the Bank of Japan after a new governor takes over in April.
If floating mortgage rates rise, it could make people reluctant to purchase, said an official at a major real estate developer.
In Tokyo and the three neighboring prefectures of Kanagawa, Chiba and Saitama, the average unit price of new condominiums rose 0.4 percent last year to 62.88 million yen, while new condo supply dropped 12.1 percent.
Across the country, the number of condos listed for sale fell 5.9 percent to 72,967 units. The institute expects supply to rise 2.8 percent in 2023.