TOKYO - The average price of new condominiums in Tokyo's 23 wards exceeded 100 million yen for the first time last year. This development raises questions about who is buying these high-priced properties and what options are available for those who find these prices out of reach.
Who's Buying these Pricy New Condos?
The average price of a new condominium sold in Tokyo's 23 wards last year was 114.83 million yen, crossing the 100 million yen mark for the first time.
In contrast, prices in areas outside the 23 wards and in Kanagawa, Chiba, and Saitama Prefectures ranged from 40 to 60 million yen.
How do people feel about these soaring prices?
A resident in his 20s from Saitama: "It's too expensive... Living in Saitama seems like the only option."
A couple in their 20s from Chiba living in an apartment: "We can't afford it, and we don't want to pay that much to live in Tokyo."
A person in his 50s from Aichi: "It seems like only special people can afford to buy these."
However, there are other perspectives.
A resident in his 70s from Tokyo's Hiroo area: "The apartment next door was selling for over 100 million yen. If the price goes up, it sells for more. If it sells for more, you can afford to move into a high-end care facility."
What kind of condominiums are these in Tokyo's 23 wards?
A 58-story condominium building, set to be completed in two years near Tsukishima Station in Tokyo's Chuo Ward, has already begun selling its first phase of 145 units on the 9th of this month, with many already under contract.
A 2LDK condominium is priced at 170 million yen. The building includes a sky lounge on the 30th floor with views of Tokyo, a telework lounge for remote work, and a party room for families and friends.
Sumitomo Real Estate's Toshinori Oda: "As the 'tallest in Chuo Ward,' this Tsukishima location is only about 1.6 kilometers from Ginza and about 1.9 kilometers from the south exit of Tokyo Station. It truly offers an urban living experience."
Who are the buyers?
Sumitomo Real Estate's Oda: "Company executives, 'power couples,' those upgrading their homes."
Doctors and lawyers with household incomes exceeding 20 million yen often purchase these for asset management, and there are cases of foreigners buying for investment purposes due to the weakening yen.
Targeting More Affordable Condos
What options are available for those who find these high-priced condos unattainable?
SUUMO Editor-in-Chief Yoichi Ikemoto: "The sharp price increase is centered in major cities. The further you go to the suburbs or countryside, the less steep the price rise. Stations like Omiya, Tachikawa, Funabashi, Machida, and Kashiwa, suburban core stations, can be more convenient than smaller stations in Tokyo."
It's advisable to choose locations based on convenience rather than focusing solely on Tokyo's city center. Additionally...
SUUMO's Ikemoto: "Shifting by 'one station' or 'two stations' from popular stations can significantly reduce prices, often by 10 to 15 million yen."
Source: ANN
