What is the construction cost of hospitals in Japan in terms of unit price per square meter?

In the previous issue of the “Special Report on Construction Costs per Square Meter,” we introduced cases involving hotels. This article will introduce hospitals and their construction costs in Japan in 2020 based on the unit price per square meter.

The unit cost per square meter for hospitals by structure was JPY 331,000 per square meter for steel structures.

First, a look at the construction cost of hospitals nationwide by structure shows that the cost per square meter for steel reinforced concrete structures was the highest at JPY 393,000 per square meter, followed by reinforced concrete structures and steel structures at JPY 348,000 per square meter and JPY 331,000 per square meter, respectively. On the other hand, the unit price per square meter for wood structures was the lowest at JPY 194,000 per square meter. (See figure below)

Construction Costs Per Square Meter in Japan|Hospitals (nationwide) by Structure Type

In the figure above, the average unit price per square meter for all structures was JPY 327,000 per square meter, which is just under the cost for steel structures, which cost JPY 331,000 per square meter. This is probably due to the fact that about 88% of hospitals in Japan are constructed as steel reinforced concrete structures, reinforced concrete, and steel structures, which cost more than JPY 300,000 per square meter, while about 12% are constructed as wood structures, which have extremely low construction costs of JPY 194,000 per square meter. (See figure below)

Share of Hospitals (nationwide) by Structure Type
The highest unit price per square meter for hospitals by prefecture was in Mie, followed by Aichi and Saitama.

Looking at construction costs of hospitals by prefecture in 2020, Mie had the highest cost at JPY 431,000 per square meter, followed by Aichi at JPY 421,000 square meter, Saitama at JPY 363,000 per square meter, and Fukushima at JPY 354,000 per square meter. This shows that construction costs in Mie and Aichi exceeded JPY 400,000 per square meter and are higher than those of other regions. On the other hand, Hokkaido had the lowest unit price per square meter at JPY 193,000 per square meter, followed by Kumamoto, Hiroshima, and Nagano, at JPY 237,000, JPY 246,000, and JPY 257,000 per square meter, respectively. (See figure below)

Construction Costs Per Square Meter|Steel Structure Hospitals
Hospital construction costs fell in Tokyo but remained generally unchanged nationwide with a slight decline.

(1) Hospital construction costs in Tokyo fell sharply.
Looking at the level of hospital construction costs in Tokyo until 2020, we can see that they were on a continuous upward trend from 2011, when the cost was JPY 194,000 per square meter, to 2014, when the cost was JPY 295,000 per square meter. Costs fell in 2015 but rose sharply to JPY 359,000 per square meter in 2016 before falling to JPY 302,000 per square meter in 2017. Then, they increased around 20% in one year, when costs reached JPY 383,000 per square meter in 2018 before falling once more to JPY 377,000 per square meter in 2019 and falling further to JPY 260,000 per square meter in 2020. (See figure below)

(2) Construction costs for hospitals nationwide generally remain unchanged with a slight decline.
Similarly, looking at construction costs of hospitals nationwide shows that they began a continuous upward trend in 2012, when they cost JPY 195,000 per square meter, until 2016, when they cost JPY 308,000 per square meter. Afterwards, costs fell to JPY 287,000 per square meter in 2017 before rising for two consecutive years to JPY 318,000 per square meter in 2018 and JPY 332,000 per square meter in 2019. However, in 2020, costs remained generally flat at JPY 331,000 per square meter, which was a slight decline from the previous year. (See figure below)

In this issue of the “Special Report on Construction Costs per Square Meter,” we introduced construction costs per square meter for hospitals.

It is worth mentioning that acquiring construction costs using statistical data introduced in this column is suitable for grasping construction cost trends in a large market covering cities or the entire country, but is not as suitable for projects that are highly individualized or require high accuracy.

For more construction cost information, please click below.

Reference|Data List

Construction Costs Per Square Meter in Japan|Steel Structure Hospitals

Prefectures in JapanConstruction Costs
(Unit : Thousand yen per square meter)
Mie431
Aichi421
Saitama363
Fukushima354
Osaka343
Kyoto336
Kanagawa331
Hyogo328
Chiba325
Ibaraki320
Fukuoka311
Niigata307
Gunma307
Shizuoka296
Aomori265
Tokyo260
Nagano257
Hiroshima246
Kumamoto237
Hokkaido193
Nationwide331

Source: Compiled based on the Statistical Survey of Building Starts (Ministry of Land, Infrastructure, Transport and Tourism) (as of 2020)

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