Ongoing concerns over soaring construction costs and persistently high condominium prices

「Construction costs overall remain elevated. Steel manufacturers are increasingly implementing price increases, while ready-mixed concrete suppliers have announced a policy of raising prices for the first time in 2 years, citing increases in raw material and labor costs.」

「From January to April 2026, the average construction cost per tsubo was ¥1,552,000 for reinforced-concrete construction, up 16.0% year on year, and ¥776,000 for timber construction, up 3.2%. The weaker yen and rising crude oil and other prices amid heightened tensions in the Middle East have pushed up manufacturing and logistics costs further. Steel prices, which had remained flat in the previous fiscal year, have also turned upward, and construction costs overall remain elevated.」

「From January to October 2025, the average construction cost per tsubo was ¥1,604,000 for steel-reinforced concrete construction, down 9.5% year on year, and ¥767,000 for timber construction, up 5.5%. Construction costs continued to remain elevated against a backdrop of surging material prices, labor costs and other expenses.」

「From January to April 2025, the average construction cost per tsubo was ¥1,855,000 for reinforced steel-concrete construction, up 5.4% year on year, and ¥752,000 for timber construction, up 5.9%. Steel and timber prices remained high, while cement prices reached a new record, and construction costs continued to surge.」

「From January to April 2024, the average construction cost per tsubo was ¥1,759,000 for steel-reinforced concrete construction, up 53.7% year on year, and ¥710,000 for timber construction, up 14.5%.」

「Steel prices remain high, and in January 2024 the average construction cost per tsubo was ¥1,742,000 for steel-reinforced concrete construction, up 50.5% year on year, and ¥698,000 for timber construction, up 16.4%. Construction costs have risen overall against a backdrop of inflation and soaring labor costs, among other factors, and are expected to continue trending upward.」

「From January to October 2023, the average construction cost per tsubo was ¥1,183,000 for steel-reinforced concrete construction, down 17.6% year on year, and ¥669,000 for timber construction, up 15.5%.」

「From January to July 2023, the average construction cost per tsubo was ¥1,154,000 for steel-reinforced concrete construction, down 23.8% year on year, and ¥654,000 for timber construction, up 13.4%. Construction costs are expected to remain high, reflecting solid construction demand and rising labor costs, among other factors.」

「From January to April 2023, the average construction cost per tsubo was ¥1,145,000 for steel-reinforced concrete construction, down 15.7% year on year, and ¥620,000 for timber construction, up 8.0%. Steel prices remained high, while timber prices, which had surged during the so-called wood shock, were trending downward.」

「In 2022, the average construction cost per tsubo was ¥582,000 for timber construction, up 2.3% year on year, and ¥1,436,000 for steel-reinforced concrete construction, up 28.4%. Although timber prices, which surged last year, began to decline gradually, they remained elevated, while steel prices also remained high, and construction costs continued to rise.」

「From January to October 2022, the average construction cost per tsubo was ¥580,000 for timber construction, up 1.9% year on year, and ¥1,436,000 for steel-reinforced concrete construction, up 23.8%.」

「From January to July 2022, the average construction cost per tsubo was ¥1,514,000 for steel-reinforced concrete construction, up 29.3% year on year, and ¥577,000 for timber construction, up 1.8%. Material prices have surged due to the military conflict between Russia and Ukraine, both major steel exporters, and the weaker yen, and construction costs continue to rise, according to the Ministry of Land, Infrastructure, Transport and Tourism.」

「From January to April 2022, the average construction cost per tsubo was ¥1,359,000 for steel-reinforced concrete construction, up 11.0% year on year, and ¥575,000 for timber construction, up 1.3%.」

「For full-year 2021, the average construction cost per tsubo was ¥953,000 for reinforced-concrete construction, up 4.5% year on year, and ¥569,000 for timber construction, unchanged from the previous year. Material prices were elevated, with the impact extending to construction costs.」

「In the Tokyo metropolitan condominium market, new condominium launches from January to July 2021 totaled 15,229 units, up 59.1% year on year as a rebound from the sharp decline in sales during last year's state of emergency. As a result, launches recovered to approximately the 2019 level, when 15,368 units were launched during the same period. The initial contract rate also remained around 70%, a benchmark for market conditions, indicating a strong market.」

「In the Tokyo metropolitan condominium market, launches from January to April 2021 totaled 8,760 units, up 57.5% year on year. This appears to reflect a rebound from the sharp decline in sales during the state of emergency in April last year. Since February 2021, the initial contract rate has remained above 70%, a benchmark for market conditions, indicating a steady recovery.」

「In the Tokyo metropolitan condominium market, launches in 2020 totaled 27,000 units, down 12.8% year on year. This was likely attributable not only to the voluntary suspension of sales during the state of emergency, but also to developers focusing sales on properties that would enable them to secure appropriate profit margins. The initial contract rate averaged 66.0%, up 3.4 percentage points year on year, below the 70% benchmark for market conditions. However, average annual prices continued to rise for the second consecutive year, reaching the ¥60 million range for the first time since 1990. 2021 supply is forecast at 32,000 units, up 17.5% year on year.」

「In the Tokyo metropolitan condominium market, new supply from January to October 2020 totaled 17,000 units, down 20.7% year on year. Although April and May saw sharp declines due to the voluntary suspension of sales during the state of emergency, sales in September and October exceeded the previous year's levels for 2 consecutive months. The initial contract rate also remained above 70%, a benchmark for market conditions, indicating signs of a recovery.」

「In the Tokyo metropolitan condominium market, new supply from January to July 2020 totaled 9,500 units, down 38% year on year. The decline was particularly sharp in April and May due to voluntary suspension of sales during the state of emergency. Although July launches increased as a rebound effect, conditions remain challenging.」

「In the Tokyo metropolitan area condominium market, new supply from January to April 2020 fell 38% year on year to 5,500 units. Developers had already narrowed their offerings because sales had slowed amid surging prices, and the impact of COVID-19 compounded this trend. April sales totaled 686 units, the lowest since the survey began in 1973. The initial-month contract rate rose to 78.9% as the number of properties offered declined, but April sales totaled only 779 units, less than half the number in the same month of the previous year.」

「In the Tokyo metropolitan area condominium market, supply declined for the first time in 3 years due to difficulties acquiring land, and full-year 2019 sales fell 15.9% year on year to 31,000 units. The initial-month contract rate was 62.6%, below the 70% benchmark for the fourth consecutive year. However, developers have been selling properties over longer periods without cutting prices in order to secure appropriate profits, and the market is expected to remain firm despite continued sluggish sales.」

「In the Tokyo metropolitan area new condominium market, the number of buyers declined as property prices remained high, and developers restrained new supply and focused on selling inventory. As a result, new supply from January to July 2019 fell 16.9% year on year to 15,368 units. The average initial-month contract rate during the period also remained below the 70% benchmark for market strength.」

「In the Tokyo metropolitan area new condominium market, new supply from January to April 2019 fell 13.6% year on year to 8,900 units as developers restrained new supply and focused on selling inventory. Although the average selling price per unit, already at a high level, continued to rise, the average initial-month contract rate during the period remained below the 70% benchmark for market strength.」

「In the Tokyo metropolitan area new condominium market, new supply totaled 37,000 units in 2018, up 3.4% year on year. Although resilient demand continued, particularly for properties in central areas and near stations, the initial-month contract rate was 62.1% amid persistently high prices, remaining below the 70% benchmark for the third consecutive year.」

「In the Tokyo metropolitan area condominium market, sales from January to October 2018 were roughly unchanged from the previous year, but the initial-month contract rate remained below the 70% benchmark for market strength.」

「In the Tokyo metropolitan area condominium market, sales in the first half of 2018 rose 5.3% year on year to 15,504 units, while the average selling price per unit rose for the sixth consecutive year to ¥59.62 million. Despite the rise in condominium prices, consumer appetite for purchases did not increase because household income remained stagnant, and the initial-month contract rate continued below the 70% benchmark for market strength.」

「In the Tokyo metropolitan area condominium market, sales in fiscal 2017 (April 2017 to March 2018) increased for the first time in 4 years, rising 1.1% year on year to 36,837 units. However, the initial-month contract rate, an indicator of sales strength, remained below the 70% benchmark at 68.8% due to surging selling prices, marking the second consecutive year below 70%.」

「In the Tokyo metropolitan area condominium market, full-year 2017 sales rose 0.4% year on year to 35,898 units. The average selling price, affected by higher construction and land costs, rose to ¥59.08 million, the second-highest level on record after the ¥61.23 million recorded in 1990, an increase of 7.6% year on year.」

「In the Tokyo metropolitan area condominium market, sales from January to July 2017 rose 2.2% year on year to 18,156 units. Although some sales weakness was evident because selling prices remained high, the average initial-month contract rate from January to July 2017 was slightly below the 70% benchmark, while the rate in July 2017 was 71.9%.」

「In the Tokyo metropolitan area condominium market, sales in fiscal 2016 (April 2016 to March 2017) fell 4.4% year on year to 36,450 units. The average selling price remained high at ¥55.41 million due to surging construction costs, while the initial-month contract rate was 68.5%, below the 70% threshold distinguishing strong from weak sales.」

「In the Tokyo metropolitan area condominium market, sales in 2016 fell below 40,000 units for the first time in 7 years, at more than 35,000 units, down 11.6% year on year. The average selling price declined 0.5% year on year to ¥54.90 million, but the unit price of exclusive floor area increased 1.8% year on year to ¥793,000 per square meter due to persistently high construction costs and surging land acquisition prices. Private research firms forecast 2017 sales at 38,000 units, up 6.2% year on year.」

「In the Tokyo metropolitan area condominium market, consumer appetite for purchases remained weak because of high condominium prices and the further postponement of the consumption tax increase, while developers reduced the volume of properties supplied. New condominium sales from January to October 2016 fell 15.3% year on year, and monthly contract rates generally remained below the 70% benchmark for market strength. Private research firms forecast that annual new supply in 2016 would be around 37,000 units, falling below 40,000 units for the first time in 7 years, since 2009, when supply declined following the Lehman shock.」

「In the Tokyo metropolitan area condominium market, consumer appetite for purchases declined as condominium prices remained high amid rising construction costs, including labor costs. Sales of new condominiums in July 2016 fell 30.7% year on year to 3,317 units, declining for the eighth consecutive month, while the contract rate fell 20.4 percentage points year on year to 63.3%, below the 70% benchmark for market strength for the second consecutive month. Private research firms revised their annual sales forecast down from 43,000 units to around 37,000 units, bringing it into the 30,000-unit range for the first time since 2009.」

「In the Tokyo metropolitan area condominium market, the number of units sold continued to decline as higher construction costs pushed up selling prices. In April 2016, 1,978 units were sold, down 13.5% year on year, marking the fifth consecutive month of decline, while the average selling price rose 8.4% year on year to ¥57.50 million per unit, marking the 11th consecutive month of increase. Construction costs are expected to remain elevated due to the Kumamoto earthquake, and selling prices are expected to remain high.」