Tokyo concrete prices reach record high with 14 percent surge

On May 26th, the Nikkei Shimbun reported that ready-mix concrete prices in Tokyo climbed 14% to a record high, as builders absorbed rising costs for materials and labor. The shift reflects a broader change in pricing practices that could reshape Japan’s construction sector.

As of late April 2025, the going rate for ready-mix concrete in Tokyo stands at approximately ¥24,800 per cubic meter - an increase of ¥3,000 over previous levels.

This marks the first price hike in 11 months and surpasses the record set in June 2024.

Chart courtesy of the Nikkei Shimbun, edited by Patience Realty.

The Tokyo Ready-Mix Concrete Cooperative, which represents manufacturers supplying central Tokyo, had proposed an increase for deliveries beginning in April. That hike has now taken full effect, as general contractors have agreed to the revised pricing.

The surge stems in part from higher input costs. Cement prices - already raised by major producers for April shipments - have now filtered through the concrete sector. Aggregates such as sand and crushed stone, which are mixed with cement to enhance strength, have also become more expensive, further increasing production costs.

Transport and labor expenses have added pressure. Mixer truck drivers remain in short supply, prompting the cooperative to urge member companies to adopt a five-day workweek to improve working conditions. As this policy spreads, labor costs are rising across the sector.

Some small and midsize manufacturers are still supplying concrete under older, low-cost contracts and face profitability challenges. However, the current industry stance favors raising profit margins over boosting shipment volume, reinforcing the broader push for higher prices.

Traditionally, contractors paid a fixed price for concrete throughout the duration of a project, based on the rate at the time the contract was signed. For long-term urban redevelopment, this often meant concrete was delivered years later at outdated prices - despite rising market costs.

To address this issue, the Tokyo Ready-Mix Concrete Cooperative has promoted a transition to shipment-based pricing, where the rate is determined at the time of delivery.

This change began with fiscal 2023 contracts and will be fully implemented from April 2025. General contractors have accepted the new model along with the associated price hikes.

Despite a solid backlog of redevelopment projects, April 2025 shipments of ready-mix concrete in the Tokyo area fell to 201,479 cubic meters, down 15.9% from a year earlier.

Labor shortages, shorter working hours, and overtime limits have reduced site productivity, delaying progress on large-scale projects.

Source:

Nikkei Shimbun (Japanese only; paywalled)