The average new condominium price in Tokyo’s 23 wards reached a record ¥137.84 million in fiscal 2025 (April 2025 to March 2026), up 18.5% year-on-year. Supply fell to 21,659 units across Greater Tokyo, the lowest since 1973. Existing condo transactions also rose for the 17th straight month in March 2026.
Tokyo’s housing market reached new highs in fiscal 2025. The Real Estate Economic Institute (REEI) released its annual report on April 20, 2026, showing that the average price of a new condominium in Tokyo’s 23 wards climbed to ¥137.84 million. That is an 18.5% jump from the previous year and the third straight year above ¥100 million.
At the same time, the number of new condos put on sale across the Greater Tokyo Area fell to 21,659 units. That is the lowest annual supply since data collection started in 1973. The existing (resale) market told a similar story, with sales rising for the 17th straight month in March 2026.
Here is what the numbers show and what they mean for buyers, sellers, and anyone thinking about the Tokyo housing market.
What Does the Latest REEI Data Show?
The REEI report covers the full fiscal year 2025, running from April 2025 to March 2026. It tracks new condominium supply, pricing, and contract rates across the four prefectures that make up the Greater Tokyo Area: Tokyo, Kanagawa, Saitama, and Chiba.
Three main findings stand out:
- Prices set records in every prefecture.
- Supply fell for the fourth straight year, hitting a 50-year low.
- Buyers are taking longer to decide, with contract rates dropping.
The average price across Greater Tokyo was ¥93.83 million, up 15.3% year-on-year. The price per square meter reached ¥1.419 million, up 15.4%, and has now risen for 14 straight years.
Fiscal 2025 Price and Supply by Area
| Area | Average Price | Year-on-Year | New Supply | Supply Change |
|---|---|---|---|---|
| Tokyo 23 wards | ¥137.84 million | +18.5% | 7,708 units | −6.8% |
| Tokyo outside 23 wards | ¥68.23 million | +12.5% | 2,798 units | +40.4% |
| Kanagawa | ¥74.81 million | +13.6% | 4,997 units | +9.0% |
| Saitama | ¥63.06 million | +7.0% | 2,939 units | −14.2% |
| Chiba | ¥68.28 million | +21.8% | 3,217 units | −18.8% |
| Greater Tokyo total | ¥93.83 million | +15.3% | 21,659 units | −2.6% |
Source: Real Estate Economic Institute, Fiscal 2025 Greater Tokyo Condominium Market Report (April 2026).
Why Is New Condo Supply So Low?
New condominium supply in Greater Tokyo has fallen for four years in a row, dropping 2.6% in fiscal 2025 to 21,659 units. Three main factors explain the shortage: limited central land, higher construction costs, and tighter labour rules that slow down projects.
Developers are finding it harder to secure suitable sites in central Tokyo. Office, hotel, and mixed-use projects now compete for the same plots. Construction costs have also climbed sharply due to higher material prices and a shortage of skilled workers.
According to REEI, rules that cap overtime hours for construction workers, introduced in April 2024, have extended the time needed to finish each project. That slows down the pace at which new units reach the market.
One sign of how tight things have become: developers supplied 1,930 leasehold (定借) units in fiscal 2025, up 1,318 units from the prior year. Leasehold lets developers build without buying the land outright, which helps manage costs but gives buyers a fixed-term ownership right rather than full freehold.
How Much Do Tokyo’s 23 Wards Cost Now?
The average new condo in Tokyo’s 23 wards cost ¥137.84 million in fiscal 2025, up 18.5% from the previous year. On a per-square-meter basis, prices reached ¥2.143 million, a 20.9% jump. Large-scale, high-rise projects in prime wards drove most of the increase.
The ¥137.84 million figure is a record, and the third straight year above the ¥100 million mark. For context, the same average was ¥116.32 million in fiscal 2024 and around ¥83 million as recently as fiscal 2019.
REEI senior researcher Tadashi Matsuda has said in past reports that demand for high-priced condos in central wards shows no sign of slowing. The fiscal 2025 numbers support that view, with most of the price gains coming from large luxury projects in popular central locations.
How Are New Condos Selling in 2026?
Buyers are taking more time to decide, reflecting a market where careful selection has replaced quick decisions. The Greater Tokyo first-month contract rate reached 62.9% in fiscal 2025, with Chiba leading all prefectures at 74.3%. The 23 wards recorded 62.3%, while Kanagawa came in at 60.1% and Saitama at 58.4%.
Buyers today have more choice and are weighing their options carefully. In fiscal 2025, 510 units achieved instant sell-out (即日完売) on their first day of sales, showing that well-located, well-priced projects still move quickly. At the same time, overall inventory stood at 6,409 units by the end of March 2026, giving buyers a healthy range of options to consider.
Developers are also adjusting their approach. The sharp rise in leasehold (定借) supply, up 1,318 units year-on-year to 1,930 units, shows developers finding creative ways to bring more inventory to market.
In short, the market rewards thoughtful buyers who take time to find the right property, while strong projects in prime locations continue to attract steady demand.
How Is the Existing Condo Market Performing?
The existing (resale) condominium market has been the more active segment. According to the Real Estate Information Network for East Japan (REINS), 5,001 existing condos changed hands in the Greater Tokyo Area in March 2026, up 0.2% from March 2025. That marks 17 straight months of year-on-year growth.
Source: Housing Japan analysis of REINS Market Watch data.
The average existing condo price per square meter in Greater Tokyo reached ¥863,400 in March 2026, up 9.3% year-on-year. This extended a 71-month streak of monthly price increases, stretching back to May 2020.
The average total price for an existing condo was ¥55.21 million, up 11.6% from a year earlier. Most transacted units were about 63 square meters and 27 years old, meaning they were built in the late 1990s.
March 2026 Transactions by Prefecture
| Prefecture | Transactions | Year-on-Year |
|---|---|---|
| Tokyo | 2,583 | −2.9% |
| Kanagawa | 1,275 | +6.5% |
| Saitama | 577 | +0.7% |
| Chiba | 566 | +1.1% |
| Greater Tokyo total | 5,001 | +0.2% |
Source: REINS Market Watch, March 2026.
Tokyo itself saw a small dip in volume, while the surrounding prefectures grew. That pattern lines up with the price data: as central Tokyo becomes more expensive, some buyers look to the outer areas for cheaper properties.
Why Are Prices Still Rising?
Three forces are pushing Tokyo condo prices higher: a shortage of new supply, steady foreign demand, and low borrowing costs by international standards.
Supply is tight
Construction costs have risen sharply. Material prices, labour shortages, and the April 2024 cap on overtime hours have all combined to slow the pace of new projects. When fewer new homes come to market, competition for the existing stock grows.
Foreign demand is holding up
The Japanese yen has stayed relatively weak against the US dollar, euro, and other major currencies. That makes Tokyo property cheaper in foreign currency terms. Foreign buyers made up about 19% of condo transactions in Chiyoda, Minato, and Shibuya wards during the first half of 2025, and 12.7% in the rest of Tokyo’s 23 wards. Read this Housing Japan Article on The Weak Yen
Borrowing costs remain low
The Bank of Japan raised its policy rate to 0.75% in December 2025 and has held it there ever since. That is the highest level since 1995, but still well below the rates seen in the United States or Europe. Japanese variable mortgage rates remain near historic lows, which supports domestic buying power.
How Could Bank of Japan Rate Changes Affect the Market?
The Bank of Japan has kept its policy rate at 0.75% through early 2026 but signaled that changes are coming. Most economists expect the next increase around October 2026, with a rate of 1.0% to 1.25% likely within 12 to 18 months. Even so, borrowing costs would remain low compared with other major economies.
The BOJ’s last meeting before this article was published was in March 2026, where the board voted 8-to-1 to hold rates steady. Board member Hajime Takata once again voted for an immediate increase to 1.0%. The next meeting is scheduled for April 27-28, 2026.
BOJ Governor Kazuo Ueda has signaled caution about raising rates too quickly. In a speech on April 13, 2026, read on his behalf by Deputy Governor Ryozo Himino, Ueda pointed to uncertainty from global tensions and their potential impact on oil prices, household costs, and inflation.
For Tokyo property buyers, the message is that mortgage rates may tick up gradually, but they remain attractive by global standards. That continues to support demand in the market.
What Does This Mean for Buyers and Sellers?
For buyers, the Tokyo market in 2026 calls for careful selection rather than rushing. Prices remain at record highs, but inventory of new units is tight and the best resale units sell quickly. For sellers, well-located and well-managed properties continue to attract strong interest, particularly from foreign buyers.
Here are a few practical takeaways for each side:
If you are thinking of buying, focus on building quality, management history, and location. Central wards have seen the strongest price gains and the highest starting prices. Buyers may find cheaper properties in the outer wards and nearby prefectures. Solid demand in commuters areas can be seen from investors looking for larger units at lower prices.
If you are thinking of selling, the timing looks favorable for well-located properties. With new supply constrained and foreign capital still active, central Tokyo condos in the ¥100 million and above range continue to trade. Pricing and positioning matter more than ever, as buyers are taking longer to commit.
At Housing Japan, we help people buy, sell, and manage luxury homes in central Tokyo. Our bilingual team can guide you through the whole process, from choosing the right area to negotiating contracts and working with banks. You do not need to speak Japanese or know the local paperwork to move forward with confidence.
Get in touch with Housing Japan to speak with one of our property specialists about your goals in the Tokyo market.
Q&A: Tokyo Condo Prices in 2026
How much does a new condo cost in Tokyo’s 23 wards in 2026? The average new condo in Tokyo’s 23 wards cost ¥137.84 million in fiscal 2025, up 18.5% year-on-year. That works out to ¥2.143 million per square meter. Central wards like Minato, Chiyoda, and Shibuya are above the average.
Why are Tokyo condo prices rising so fast? Three forces are pushing prices up: limited new supply, higher construction costs, and steady foreign buyer demand. New condo supply fell to a 50-year low in fiscal 2025, and a weaker yen has kept Tokyo attractive to overseas buyers.
What is the difference between new and existing condo prices in Tokyo? New condos in Tokyo’s 23 wards averaged ¥137.84 million in fiscal 2025. Existing condos across Greater Tokyo averaged ¥55.21 million in March 2026.
Is now a good time to buy property in Tokyo? It depends on your goals, budget, and time horizon. Prices are at record highs and foreign demand is steady. Focusing on location and building quality often beats trying to time the market.
How do Bank of Japan rate changes affect Tokyo condo prices? The BOJ raised its policy rate to 0.75% in December 2025 and has held steady since. Japanese mortgage rates remain low by global standards, so the direct impact on Tokyo’s condo market has been limited so far.
Where do foreign buyers purchase property in Tokyo? Foreign buyers are most active in Minato, Chiyoda, and Shibuya with 19% of condo transactions in these three wards, compared with 13% elsewhere in the 23 wards.
What Next?
Whether you are starting to explore the Tokyo property market or ready to make a move, Housing Japan is here to help. We focus on buying, selling, and managing luxury residential real estate in central Tokyo. With 25 years of experience, our multilingual team can guide you through every step, from reading market data like the REEI and REINS reports to finding the right property and closing the deal.
Sources:
- Real Estate Economic Institute (REEI), Fiscal 2025 Greater Tokyo Condominium Market Trends Report, April 20, 2026 (Japanese)
- Real Estate Information Network for East Japan (REINS), Monthly Market Watch Summary Report, March 2026 (Japanese)
Written by the Housing Japan team. Housing Japan is a licensed real estate agency in Tokyo with 25 years of experience serving buyers, sellers, and investors in the central Tokyo luxury residential market.
