ASIA: The average unit price of new condominiums in Japan reached a record high of 51.21 million yen ($382,000) in 2022, breaking the previous record for the sixth consecutive year due to rising construction material costs, according to a report released Tuesday by a research institute.
According to an institute official, the trend could accelerate in 2023 due to high-end condo projects in Tokyo and surrounding areas, as well as a growing number of dual-income households.
However, analysts believe that the current low-interest rates on mortgages, which have supported demand, will be impacted by a potential policy shift at the Bank of Japan after a new governor takes over in April.
According to the Real Estate Economic Institute, the price is up 0.1 percent from the previous year and reflects an upward trend fueled by the popularity of properties near train stations.
If floating mortgage rates rise, people may be hesitant to buy, according to an official at a major real estate developer.
The average unit price of new condominiums in Tokyo and the three neighboring prefectures of Kanagawa, Chiba, and Saitama rose 0.4 percent last year to 62.88 million yen, while new condo supply fell 12.1 percent.
The number of condos for sale in the United States fell 5.9 percent to 72,967 units. According to the institute, supply will increase by 2.8 percent in 2023.