Average Price of New Apartments in Tokyo Metropolitan Area Exceeds 100 Million Yen... The Revival of "Okushon"

 
The average price of newly built apartments in the Tokyo metropolitan area has surpassed 100 million yen (approximately 900 million won) for the first time, reviving the term "okushon" (a portmanteau of 100 million yen and mansion, used to describe luxury apartments during Japan's bubble economy era).

According to outlets such as the Asahi Shimbun, the Real Estate Economic Institute announced today (July 22) that the average price of newly built apartments for sale in the Tokyo metropolitan area reached 101.35 million yen, breaking the 100 million yen mark for the first time.

This marks the sixth consecutive year of increases and the first time the average has exceeded 100 million yen for the first half of the year since statistics began in 1973.

The Tokyo metropolitan area comprises the capital Tokyo and the surrounding prefectures of Kanagawa, Chiba, and Saitama.

The average price of new apartments in Tokyo proper also hit a record high of 142.49 million yen.

The price growth rate for new apartments across the four-prefecture region was recorded at 13.1% compared to the previous year.

Among them, Tokyo proper saw an increase of 9.1%, while Chiba Prefecture experienced a sharp surge of 56.8%.

Analysts attribute the rising apartment prices in the Tokyo metropolitan area to construction costs that have jumped by about 30% over the past five years, as well as a shortage of construction engineers driven by the growing construction of artificial intelligence (AI) data centers.

The drastic drop in the supply of new apartments in the Tokyo metropolitan area—plummeting from 95,635 units in the year 2000 to 21,962 units last year—also contributed to the upward pressure on prices.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.