TOKYO: The average unit price of newly supplied condominiums in the greater Tokyo area in January-June fell 13.5 percent from a year earlier, Real Estate Economic Institute Co. said Monday.

The average price of new condos put up for sale in Tokyo and its three neighboring prefectures of Kanagawa, Saitama and Chiba came to 76.77 million yen.

The drop was the first in three years for the first-half period, reflecting a decrease in high-priced condo supplies. Due to rising construction costs, the average price was second only to the record high a year before.

The average price of new condos in the Japanese capital’s densely populated 23 special wards slid 16.3 percent to 108.55 million yen after logging 129.62 million yen a year before on the strength of high-priced condos for the wealthy. The average, however, exceeded 100 million yen for the second straight year.

The January-June total of new condo supplies declined 13.7 percent to 9,066 units in the greater Tokyo area, sending the first-half number below 10,000 units for the first time in four years. Labor shortages led to delays in construction work, affecting developers’ sales plans.

Backed by rising labor costs and materials prices, the average price was on an uptrend in Kanagawa and Chiba, climbing 7.7 percent to 61.88 million yen in Kanagawa and 22.3 percent to 58.31 million yen in Chiba.

“There remain sales plans in the 23 Tokyo wards that include high-priced condos, but with construction costs still high, development activities in surrounding areas are expected to remain brisk” in order to curb condo prices, an official of the institute said.

JIJI Press