The price of Tokyo apartments is growing to a near bubble-era peak in 2020
The country’s Real Estate Economic Institute said Tuesday that prices of newly constructed apartments in the Tokyo area rose 1.7 percent last year, approaching the record highs seen during Japan’s asset-inflated bubble period that ended in the early 1990s.
Higher construction costs due to the Olympics preparations and the popularity of high-rise condominiums in previously industrial waterfront areas helped push the average price of apartments up to 60.84 million yen, the highest since 1990, when it hit a record 61.23 million yen.
A 690 million yen condominium in Daikanyama was the most costly unit, the real estate information and consultancy firm said.
The number of sales fell 12.8 percent to 27,228 units from a year ago, but decreased by about 70 percent from 1990 levels.
In a survey, the real estate website Suumo said that in the midst of the coronavirus outbreak, low interest rates and tax cuts helped maintain property demand.
Unlike people who saw an exodus to the suburbs during the coronavirus pandemic in other major cities such as New York, Tokyo residents were more interested in moving to new buildings in central locations to minimize their commuting times, it said.
The Nikkei 225 average of the Tokyo stock exchange rose about 16 percent last year.
Source: Japan Today
