Apartment Complex Construction Cost in Japan 2021

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

In this issue of the “Special Report on Construction Costs per Square Meter,” we will introduce the construction costs of apartment complexes in Japan in 2020 by focusing on the unit price per square meter.

In general, the construction cost of apartment complexes varies depending on the region as well as whether they are condominiums or for rent. We will grasp construction cost levels by prefecture and will also grasp recent trends from the following perspectives of condominiums and rental apartments.

1. Condominium and rental apartment construction costs by structure
2. Construction costs of condominiums by prefecture
3. Construction cost trends of condominiums
4. Construction cost of rental apartments by prefecture
5. Construction cost trends of rental apartments

1. Condominium and rental apartment construction costs by structure

First, a look at the construction cost of apartment complexes (reinforced concrete structures) nationwide shows that the cost of condominiums is around JPY 265,000 per square meter. On the other hand, the construction cost of rental apartments is around JPY 249,000 per square meter, which is around JPY 16,000 lower than the cost of condominiums. (See figure below)

2. Construction costs of condominiums by prefecture

Looking at the construction cost of condominiums in 2020 by prefecture shows that the highest was JPY 318,000 per square meter in Tokyo, followed by JPY 306,000 per square meter in Gunma, JPY 301,000 per square meter in Miyagi, JPY 285,000 per square meter in Kanagawa, and JPY 268,000 per square meter in Niigata. On the other hand, the lowest unit price per square meter was JPY 110,000 per square meter in Kochi, followed by JPY 155,000 per square meter in Tokushima, and JPY 178,000 per square meter in Kumamoto. (See figure below)

Characteristics of condominiums include construction costs in Tokyo, Gunma, and Miyagi exceeding JPY 300,000 per square meter and being significantly higher than those of other regions, as well as the existence of regional differences in construction costs with large differences depending on the region.

3. Construction cost trends of condominiums

(1) Unit price per square meter is rising nationwide in 2020.
Looking at the level of construction costs for condominiums nationwide from 2011 to 2020 shows that costs fell slightly from JPY 181,000 per square meter in 2011 to JPY 179,000 per square meter in 2012 before rising steadily to JPY 259,000 per square meter in 2017. Furthermore, costs fell to JPY 251,000 per square meter in 2018 but recovered to JPY 253,000 per square meter in 2019 and rose to JPY 265,000 per square meter in 2020. In the 8 years between 2012, when costs bottomed out, and 2020, costs increased by approximately 48.0%. (See figure below)

(2) Unit price per square meter in Tokyo rises in 2020.
Next, looking at construction cost trends in Tokyo shows that costs stayed flat from JPY 212,000 per square meter in 2011 to 2012 before rising sharply to JPY 297,000 per square meter in 2015. Although costs fell to JPY 292,000 per square meter in 2016, they rose again to JPY 327,000 per square meter in 2017. Afterwards, costs fell to JPY 305,000 per square meter in 2018 and stayed flat to 2019. By 2020, costs had risen to JPY 318,000 per square meter. In the 8 years between 2012, when costs bottomed out, and 2020, costs had risen sharply by around 49.7%. (See figure below)

(3) Unit price per square meter in Osaka rises approximately 60% in 8 years.
Looking at the level of construction costs for condominiums in Osaka shows that costs have fallen from JPY 162,000 per square meter in 2011 to JPY 159,000 per square meter in 2012. Since then, costs have been rising continuously. In 2020, the cost was JPY 253,000 per square meter, which is an increase of around 59.7% compared to 2012 levels, an increase of nearly 60% in 8 years. (See figure below)

4. Construction cost of rental apartments

Looking at the level of construction costs for rental apartments in 2020 by prefecture shows that the highest was JPY 346,000 per square meter in Ishikawa, followed by JPY 327,000 per square meter in Tokyo, JPY 313,000 per square meter in Kanagawa, and JPY 298,000 per square meter in Nagano. On the other hand, the lowest unit price per square meter was JPY 111,000 per square meter in Fukui, followed by JPY 161,000 pe square meter in Gifu, and JPY 162,000 per square meter in Aomori. (See figure below)

Characteristics of rental apartments include construction costs in Ishikawa, Tokyo, and Kanagawa exceeding JPY 300,000 per square meter and being extremely high compared to those of other regions. Furthermore, as is the case with condominiums, there are large regional differences in construction costs.

5. Construction cost trends of rental apartments

(1) Unit price per square meter nationwide has been on an upward trend for 3 consecutive years.
Looking at the level of construction costs for rental apartments between 2011 and 2020 shows that costs have increased continuously from JPY 175,000 per square meter in 2011 to JPY 219,000 per square meter in 2016. In 2017, the cost was JPY 218,000 per square meter, which is a slight drop from 2016 levels. Since then, costs have increased for 3 consecutive years to JPY 227,000 per square meter in 2018, JPY 238,000 per square meter in 2019, and JPY 249,000 per square meter in 2020. Costs have increased approximately 41.9% in the 8 years between 2011 and 2020. (See figure below)

(2) Unit price per square meter in Tokyo rise approximately 50% in 8 years since 2012.
Looking at the construction costs of rental apartments in Tokyo shows that costs have been on an upward trend from JPY 219,000 per square meter in 2012 to JPY 327,000 per square meter in 2020. Costs have soared in the past 8 years and have risen approximately 49.6% since 2012. (See figure below)

(3) Unit price per square meter in Osaka declines in 2020.
Looking at the level of construction costs for rental apartments in Osaka shows that costs have dropped from JPY 175,000 per square meter in 2011 to JPY 172,000 per square meter in 2012. Since then, costs have risen constantly, reaching JPY 221,000 per square meter in 2017. After dropping to JPY 220,000 per square meter in 2018, costs rose to JPY 226,000 per square meter in 2019 before dropping once more to JPY 219,000 per square meter in 2020. Costs have risen approximately 27.2% in the 8 years between 2012, when costs bottomed out, to 2020. (See figure below)

This article introduced construction costs and trends per square meter for apartment complexes.

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.

• Construction cost for Apartment Complexes
• Construction cost for Detached Residences
• Construction cost for Rental Apartments
• Construction cost for Shared Residences
• Construction cost for Residences
• Construction cost for Office Buildings
• Construction cost for Factories
• Construction cost for Warehouses
• Construction cost for Commercial Stores
• Construction cost for Hotels
• Construction cost for Hospitals
• Construction cost for Welfare and Nursing Care Facilities
• Construction cost for Schools

Reference｜Data List

Construction Costs Per Square Meter in Japan｜Condominiums (reinforced concrete structures)

Prefectures in Japan	Construction Costs (Unit : Thousand yen per square meter)
Tokyo	318
Gunma	306
Miyagi	301
Kanagawa	285
Niigata	268
Aichi	262
Toyama	261
Chiba	261
Shiga	259
Osaka	253
Saitama	253
Nagano	252
Hokkaido	246
Yamanashi	246
Aomori	243
Tochigi	242
Hyogo	240
Shizuoka	239
Ibaraki	237
Kagoshima	234
Ehime	231
Mie	227
Iwate	227
Gifu	225
Nara	224
Kyoto	223
Nagasaki	221
Hiroshima	220
Okayama	217
Okinawa	217
Miyazaki	213
Fukushima	211
Fukuoka	210
Oita	208
Yamaguchi	197
Kagawa	195
Tottori	195
Wakayama	189
Shimane	188
Saga	187
Kumamoto	178
Tokushima	155
Kochi	110
Nationwide	265

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