The average price of new condominiums in the Tokyo area that went on sale in the April-to-September period hit a record high. A research firm cites high construction costs due to rising material prices and wages as a major factor.
The Real Estate Economic Institute says the average asking price in Tokyo and three surrounding prefectures — Kanagawa, Saitama and Chiba — stood at 79.5 million yen, or about 527,000 dollars. That’s up 1.5 percent from a year earlier.
The price is the highest for the six months through September since the survey began in 1973.
The average price of new units in central Tokyo’s 23 wards also logged a record high, at above 110 million yen, or more than 730,000 dollars.
The number of new condos put on the market in the Tokyo area was slightly over 8,200. That’s down almost 30 percent and is a record low for the 6-month period.
Developers are having trouble obtaining land mainly in central Tokyo. And a labor shortage has made it difficult to know when new units will be completed and ready for sale, even after construction begins.
The research firm says condo prices will likely remain high for some time as it does not foresee a decline in construction costs.