INTRODUCTION

The Tokyo 23 Wards’ (23W) condominium market continues its upward trend, reaching new record highs. Housing demand remains robust, supported by consistent population growth, relatively low interest rates, and stronger wage growth following consecutive robust Shunto wage negotiations. New condominium supply continues to decline, with elevated land, construction, and labour costs remaining at the forefront of ongoing supply constraints. In addition, the scarcity of land designated for residential use and competition from developers in other sectors further constrain new supply. Meanwhile, condominiums located in the central five wards (C5W) continue to attract strong demand from high-net-worth individuals and foreign nationals, with some viewing these high-demand properties as investments or as second homes. Moving forward, demand for residential properties in the peripheral wards is likely to attract increased attention from spillover demand from the central wards, supported by the recent notable increase in net migration into these family-friendly districts.