Tokyo’s condominium market has surged to record levels, driven by a persistent supply crunch and sharply rising construction costs, according to recent real estate data. The spike highlights growing pressure in Japan’s capital, where demand for urban housing continues to outpace new development.
Limited availability of land in central Tokyo remains a key factor. Developers are struggling to launch new projects as suitable plots become scarcer, pushing buyers to compete for a shrinking pool of newly built units. This imbalance has steadily driven prices upward, particularly in prime districts.
At the same time, construction costs have climbed significantly. Higher prices for building materials, rising labor wages, and stricter construction standards have increased overall project expenses. Developers are passing these costs on to buyers, further lifting condo prices.
Despite the rising prices, demand has remained resilient. Low interest rates, strong employment in the metropolitan area, and Tokyo’s status as a long-term investment destination continue to attract both domestic and foreign buyers. For many investors, condominiums are still viewed as a relatively stable asset amid global economic uncertainty.
Industry experts caution, however, that affordability is becoming a growing concern, especially for first-time buyers. If supply constraints persist and construction costs continue to rise, Tokyo’s condo market may remain under pressure in the near term, keeping prices elevated and competition intense.
The current trend underscores a broader challenge for Tokyo’s housing market: balancing strong demand with sustainable development in one of the world’s most densely populated cities.
Originally written by: LISA DU
Link to the article: https://www.japantimes.co.jp/business/2026/01/27/economy/tokyo-condo-prices-record-high/
