Soaring condominium prices even turning away 'power couples' in Japan April 6, 2025 (Mainichi Japan) Japanese version The large-scale condominium complex Harumi Flag is pictured in Tokyo's Chuo Ward, Oct. 19, 2023, in this photo taken from a Mainichi Shimbun helicopter. (Mainichi/Naoki Watanabe) TOKYO -- The value of residential land is climbing in Japan amid a surge in condominium prices, with the average price of newly built apartments in the heart of Tokyo topping 100 million yen (some $660,000). Even high-earning dual-income couples, or "power couples," find these prices too steep, prompting a noticeable shift toward purchasing detached homes. Prices going up even while searching In early March, in a quiet residential area of Tokyo's Ota Ward, six nearly completed two-story homes for sale stood alongside each other. Prospective residents visited to conduct final checks on the interior, amenities and other features before moving in. One 33-year-old company employee set to move in at the end of the month commented with a smile, "We got married so were looking for a home. There's a school nearby and this is an environment where it's easy to raise children, so I think we'll live here for at least over 10 years." He noted that condominium prices were soaring. "A tower condominium in the Toyosu area is a bit out of our reach. It's so annoying," he said. The man said he had been renting an apartment in the Toyosu district of Tokyo's Koto Ward, and he enjoyed the convenience of cycling to Ginza and the excitement of living in a neighborhood where new commercial facilities were opening one after another due to redevelopment, so he had been looking for an apartment in the area. Both the man and his wife work, and they have a combined annual income of 14 million to 15 million yen (about $93,000 to $100,000). But all of the condominiums they liked were priced at over 100 million yen. "Buying a 3LDK condominium (three bedrooms plus a living and dining room and a kitchen) would have been ideal, but the situation's tough," he said. "Prices kept soaring even while we were looking around." He said the company managing the place where he was living informed him in writing that it wanted to increase the monthly rent by 40,000 yen (about $265) when the contract was renewed. The large-scale condominium complex Harumi Flag, developed from the athletes' village for the Tokyo 2020 Olympic and Paralympic Games, is pictured in the capital's Chuo Ward, May 28 コピー時計 N級品  2024. (Mainichi/Ayane Matsuyama) The man applied for a unit in "Harumi Flag コピーブランド財布 " a condominium complex redeveloped from the Tokyo Olympic and Paralympic athletes' village site, but was unsuccessful. He also applied several times for used condominiums around Musashi-Kosugi Station in Kawasaki, where there are a lot of high-rise apartments, but lost in the lottery each time. Initially, he expected to pay about 60 million yen (around $398,000) for a new condominium. Then when he considered future maintenance fees and parking costs for a private car, he thought the overall cost would equate to a detached house priced at 80 million yen (around $531,000), so in the end he chose to buy a house. He ended up buying a two-story house with a 2LDK layout. It is 15 minutes' walk from the nearest station, but he conceded that he could settle for the distance considering it being a detached house. As for the prices of condominiums, he added, "Five years ago I might have been able to buy a condominium, but now I can't at all. Seeing people who bought one 10 years ago living comfortably makes me think, 'Oh man!'" Even doctors say condos 'no longer an option' "Condominiums are really expensive. For similar plots and locations, a 30-year-old used condominium unit and a new detached house are about the same price," said a 47-year-old male doctor working at a hospital in Tokyo. He recently purchased a three-story detached house in the capital's Shibuya Ward and started living there in March. "All the staff doctors around me say, 'Condominiums are no longer an option.' They say if you're going as far as to buy a condo, you're better off purchasing a detached house," he said. Tower condominiums around Musashi-Kosugi Station are pictured in Kawasaki's Nakahara Ward on April 5, 2023. (Mainichi/Kaho Kitayama) The doctor lives with his 39-year-old wife 新作ブランドコピー  a certified public accountant, and their two sons スーパーコピー服  aged 2 years and seven months, respectively. Though his wife has reduced her workload while raising the children, the family's annual income is about 25 million yen (around $166,000) and the husband and wife are considered a "power couple." They had been living in a rented condominium just a station away from Shinjuku, but this spring, their fixed-term rental contract expired. The man wanted to live in a house, but his wife favored a condominium. However, the condos around Shibuya Ward had few parking spaces and there were also strict vehicle clearance restrictions. They considered renovating a secondhand apartment, but "considering the renovation costs, it could have been more than a new build," he said. The place they settled into was also one station away from Shinjuku. It was about a 10-minute walk to the closest station. The price for the newly built 4LDK detached house was 146 million yen (approx. $970,000). "Considering the freedom, a detached house is better. It's puzzling why condominiums are so expensive," he said. Why have prices risen so much? According to the Real Estate Economic Institute Co., the national average price of newly built condominiums in 2024 was 60.82 million yen (approx. $405,000), topping 60 million yen for the first time since statistics began in 1973. Prices have risen for eight consecutive years, with the average in Tokyo's 23 wards exceeding 100 million yen for two years in a row. Tadashi Matsuda, a senior researcher at the institute, notes, "It's likely that prices will continue to hit record highs, potentially for another decade or so." One factor behind the price increases is surging construction costs. Along with material prices remaining high, the "2024 problem," referring to the strengthening of overtime regulations in the construction industry, has exacerbated labor shortages, and increases in personnel costs are expected to continue. The rise in construction costs also affects real estate companies' development strategies. Matsuda says that to ensure profits, real estate companies are "narrowing their target areas to locations where they can still sell even at higher prices," which he adds results in further price increases. National sales in 2024 are expected to drop to 59,467 units, falling below 60,000 for the first time in four years. The significant rise in condominium prices is said to have led more people to adopt a wait-and-see approach to purchasing. This chart shows movements in the Japan Residential Property Price Index (set at 100 in 2010) for condominiums and detached homes based on data from the Ministry of Land, Infrastructure, Transport and Tourism. (Mainichi) Additionally, intensified competition for land acquisition accelerates land price increases. Keita Hirata, a development director at Takamatsu House Co., which handles detached housing projects mainly in the Tokyo metropolitan area, points out, "In the past year, areas like Jiyugaoka and Minami-Aoyama in Tokyo have seen price increases of the kind that can't be explained by 'rising market rates.' There's a track record of being able to sell at high prices even if the purchase price is high, and even within Tokyo, polarization is occurring." Land in popular areas often goes up for auction with multiple competing buyers, and the more competition there is, the higher the price climbs. In addition to regional midsize developers, competitors include those in the vacation rental business, besides detached home and condominium developers. Hirata notes, "In Tokyo, specific 'place names' have become valuable for their rarity. I get the impression that foreigners are placing more importance on the brand value of place names, and prices have been rising more than ever." Are detached homes a better buy? The land ministry's Japan Residential Property Price Index (set at 100 in 2010), which indicates national real estate price trends, shows that both condominiums and detached homes have been rising in price in recent years, but that the increase in condominiums is more pronounced. Condominium towers are seen in the Toyosu area of Tokyo's Koto Ward on April 5, 2023. (Mainichi/Kaho Kitayama) Will the shift from condominiums, where high prices persist, to detached homes intensify in the future? Junichi Ishii ブランドコピー時計  leader of the housing promotion group at Daiwa House Industry Co., Japan's largest housing manufacturer, says, "Limited to Tokyo, competition between detached houses and condominiums occurs very often. When we explain the superiority of detached houses in terms of the price by total floor area, we notice a tendency for customers to feel convinced to shift from condominiums to detached houses." In the 1970s, Japan saw the advent of the term "housing sugoroku" (sugoroku is a Japanese board game where players advance with rolls of the dice). The term was used to describe the progression from living in company housing to rental homes, then to condominiums, and finally to detached houses with gardens, reflecting life stages. Recently, the "goal" of this housing sugoroku has diversified, with high-rise condominiums in central Tokyo being added. "The housing sugoroku has taken on new dimensions. As lifestyles and values shift, more people, especially in central Tokyo, see condominiums as the goal," says Takuya Sumida, general manager of the business management department in Daiwa House Industry's Condominium Business Division. He points out that as children become independent and family sizes dwindle, the layout of detached homes becomes too large. Additionally, the absence of stairs within the living space in condominiums and a greater emphasis on convenience continue to support their popularity, he says. (Japanese original by Kazuki Sakuma, Business News Department) Font Size SML Print Go to The Mainichi Home Page Related Articles Real estate firm displaces residents from Tokyo condo, plans demolition after defects found Tokyo rent for family-oriented apartments passes $1,260 avg.: realty IT co.