The report highlights an ongoing increase in the prices of used condominiums in Japan, particularly in the Tokyo Metropolitan Area, where the average price is projected to reach 52 million yen by 2025, marking a 6.3% year-on-year increase for the 13th consecutive year. Unlike new constructions, the prices of used properties are not directly affected by rising construction costs, indicating a potential decoupling between these two segments of the housing market. In 2015, the number of used condominium sales was around 35,000 at an average price of 28.92 million yen, whereas projections for 2025 suggest approximately 49,000 sales with an average price of 52 million yen, illustrating a significant price inflation.

The data provided by the East Japan Real Estate Distribution Organization reveals a dramatic rise in the market for used properties, with their average price increasing 1.8 times over the same period, compared to a 1.7 times increase in the average price of new condominiums. Interestingly, in 2025, about 10% of used condominium sales are expected to exceed 100 million yen, a stark rise from just 2% in 2019 prior to the pandemic. This shift towards higher-priced properties suggests a broader trend in the market towards luxury real estate, particularly in metropolitan Tokyo, which has seen its average price increase by 10.1% compared to declines in surrounding prefectures such as Kanagawa, Saitama, and Chiba.

Overall, the contrasting price trends across the four prefectures hint at a possible urban-rural divide in demand and investment in real estate, with Tokyo continuing to assert itself as a hub of high-priced living, while areas like Kanagawa and Saitama experience downward pressures on housing prices. This bifurcation could have profound implications for housing policy and economic conditions in the broader region, particularly as buyers reassess their investment strategies in light of fluctuating market dynamics.