The average price of a newly built condominium in the Tokyo Metropolitan Area fell 5.4% from a year earlier to ¥97.7 million (approximately $630,000) in August, according to a survey released on the 17th by the Real Estate Economic Institute. It was the first year-on-year decline in five months and the first time since April that the average fell below ¥100 million. The decline largely reflected a shift in the composition of supply rather than a broad reversal in land or construction costs. Surging land prices in central Tokyo have made development sites harder to secure, squeezing supply in Tokyo's 23 Wards, where condominium prices are relatively high and therefore exert a strong influence on the overall average. Developers launched 1,140 units for sale in August, down 12% from a year earlier. In the 23 Wards, launches plunged 31% to 478 units, while the average price was nearly unchanged, rising 0.1% to ¥138.21 million (approximately $890,000). Prices increased in every suburban area covered by the survey: the rest of Tokyo Prefecture rose 2.5% to ¥66.78 million (approximately $430,000), Saitama Prefecture climbed 15.6% to ¥68.4 million (approximately $440,000), Kanagawa Prefecture gained 10.6% to ¥73.09 million (approximately $470,000), and Chiba Prefecture advanced 9.1% to ¥67.02 million (approximately $430,000). The initial-month contract rate, which measures sales agreed during the first month of marketing, was 61%, below the 70% level generally viewed as indicating healthy demand. Tadashi Matsuda, senior chief researcher at the Real Estate Economic Institute, said the underlying trend of price increases driven by high construction costs remains in place, while concerns about higher interest rates are leading more end-users to delay purchases. The institute expects approximately 1,500 units to be released for sale in September.