The average price of new homes in Japan in 2024 hit a record high for eight consecutive years

The Japan Real Estate Economic Research Institute released data on February 26, saying that the average price of newly built residential buildings nationwide in 2024 rose by 2.9% from the previous year to 60.82 million yen. The price of new homes has hit a record high for eight consecutive years. Due to rising construction costs and insufficient supply of new homes, the price increase trend continues.

By region, the Kinki circle rose by 14.8% to 53.57 million yen, which played a pulling role in the overall situation. In addition, major local cities also rose together. Fukuoka City rose by 40.1%, the largest increase. Due to the decrease in the number of houses in Tokyo, which has a higher unit price, the Tokyo circle fell by 3.5% to 78.2 million yen.

In 2024, the number of new homes supplied nationwide in Japan decreased by 8.6% to 59,467 units, which is lower than in 2020 under the new crown epidemic. The Tokyo circle decreased by 14% to 23,003 units, with a clear downward trend. Due to labor shortages and overtime restrictions, the construction period has been extended and even postponed to 2025.

The Real Estate Economic Research Institute of Japan predicts that the number of new housing units supplied in Japan will increase by 4% to 62,000 units in 2025. Analysts believe that the supply of large projects in the Tokyo and Kinki areas will have an impact.

As construction costs rise, it is becoming increasingly difficult to obtain land in the center of Tokyo, so companies that expand their business in local areas have also emerged. The Real Estate Economic Research Institute explained that “developers targeting local cities where supply cannot keep up and maintaining business scale are increasing, and this trend will continue in the future.”