The Real Estate Economic Institute said July’s average new condominium price in Tokyo’s 23 wards surged 96.0% year on year to ¥265.2 million, approximately $1.7 million, setting a record high for a single month. The Tokyo Metropolitan Area average, covering Tokyo and the three surrounding prefectures, rose 63.7% to ¥164.93 million, approximately $1.0 million, marking a fourth consecutive monthly increase. High construction costs, driven by rising material prices and labor shortages, and the successive launch of high-priced tower condominiums in areas such as Minato Ward pushed averages higher. Launches increased 6.9% to 2,145 units, turning positive for the first time in two months, while the initial-month contract rate rose 1.5 percentage points to 69.5%. Although below the 70% level generally seen as the dividing line between healthy and weak conditions, the rate indicated demand remained for high-priced properties. About 1,000 units are expected to launch in August, while constrained supply and weakening affordability may widen the gap between prices and demand.