What is the average apartment price in Tokyo?

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A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Tokyo. If you'd like to learn more about us, you can check our presentation page.

What is the current average price for an apartment in Tokyo?

As of September 2025, the average purchase price for new apartments in Tokyo's 23 central wards is ¥116.3 million (approximately $820,000).

High-end new builds in central districts like Minato, Chiyoda, and Chuo often command ¥130 million or more, with premium units reaching ¥198 million. Used apartments across Tokyo average around ¥44-45 million, making them significantly more affordable than new construction.

The Tokyo apartment market shows dramatic price differences based on location and property age. Central business districts maintain the highest prices due to proximity to major employment centers, international businesses, and premium amenities. Outer wards offer considerably lower entry points, with new apartments starting from ¥28-35 million.

These prices represent the current peak of a sustained growth cycle that has seen Tokyo apartment prices increase by 38% since 2021 and 66% since 2015.

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How do apartment prices differ depending on the area or neighborhood?

Tokyo apartment prices vary dramatically by ward and neighborhood, with central business districts commanding premium prices while outer residential areas remain more accessible.

The most expensive districts include Minato Ward, where 1-room apartments rent for an average of ¥136,300 monthly and new condos average ¥110-150 million. Chiyoda and Chuo Wards follow closely, with 1K rentals around ¥120,000+ and new condo prices ranging from ¥115-120 million.

Mid-range districts like Shibuya, Setagaya, and Meguro offer more balanced pricing. Shibuya maintains higher prices due to its trendy, central location with 1K rents at ¥120,000+, while Setagaya, Meguro, Arakawa, Toshima, and Ota offer 1K apartments for ¥80,000-100,000 and 1LDK units around ¥140,000-200,000.

Affordable and upcoming districts in the outer wards present the best value opportunities. Adachi, Katsushika, and Edogawa offer 1-room rentals as low as ¥54,700-62,300 and new condo prices starting from ¥28-35 million. These areas also provide higher rental yields of 5-6% due to lower entry costs.

The price differential reflects accessibility to central Tokyo, local amenities, and neighborhood prestige rather than property quality alone.

What are the most expensive districts for apartments in Tokyo, and what are the more affordable or upcoming ones?

How do prices compare between small studios, one-bedroom, and larger apartments?

Tokyo apartment pricing follows a clear size-based progression, with studios offering the most accessible entry point and larger family-sized units commanding premium prices.

Studio and 1K apartments represent the most affordable category, with monthly rents averaging ¥95,000-110,000. New studio purchases in central areas typically range from ¥70-150 million, while outer ward options start from ¥28-35 million. Used studios average ¥40-50 million across Tokyo.

One-bedroom apartments (1LDK) provide more living space at moderate price increases. Monthly rents range from ¥120,000-160,000, with new purchase prices in central Tokyo spanning ¥70-100 million. Outer ward 1LDK units start around ¥35-50 million for new construction.

Larger family apartments (2-3LDK) command the highest prices due to space premiums and family market demand. Monthly rents range from ¥170,000-300,000+, with luxury 3LDK units exceeding ¥300,000 in prime locations. New family apartments in central Tokyo typically cost ¥100-150 million, while outer ward options range from ¥35-50 million.

The price progression reflects both space costs and target market purchasing power, with family apartments commanding disproportionate premiums in desirable school districts and family-friendly neighborhoods.

What is the typical total purchase cost when you include fees, taxes, and other expenses?

The total cost of purchasing an apartment in Tokyo extends significantly beyond the listed purchase price, with additional fees and taxes typically adding 5-8% to your initial investment.

Upfront costs include acquisition tax (3-4% of purchase price), registration and stamp duties (1-1.5%), real estate agent fees (3% plus ¥60,000 plus tax), and mortgage-related fees if financing (2-3% of loan amount). These combined expenses can add ¥5-8 million to a ¥100 million apartment purchase.

Ongoing annual obligations include fixed asset tax (1.4% of assessed property value) and city planning tax (0.3% of assessed value). These taxes are based on government assessments that typically run 60-80% of market value, making annual tax obligations more manageable than the percentages might suggest.

Monthly maintenance and management fees represent another significant ongoing cost, averaging ¥10,000-30,000 for typical 2-bedroom apartments. Luxury properties and buildings with extensive amenities can exceed ¥50,000 monthly. These fees cover building maintenance, management services, and common area upkeep.

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How does taking out a mortgage affect the overall affordability of buying an apartment in Tokyo?

Japanese mortgage rates remain exceptionally low, with standard rates ranging from 0.5-1.8% for variable to fixed-rate loans, making financing an attractive option for qualified buyers.

Monthly mortgage payments often cost less than equivalent rental payments for comparable properties, particularly for buyers planning to remain in Tokyo for 7+ years. The low interest rate environment means that a ¥80 million apartment with a 20% down payment results in monthly payments around ¥250,000-300,000, compared to ¥200,000-250,000 in rent for similar units.

Foreign buyers face additional considerations including higher down payment requirements (often 30-40% versus 10-20% for Japanese nationals), stricter income verification, and potential limitations on loan terms. Non-permanent residents may need specialized mortgage products with slightly higher rates.

The mortgage qualification process requires stable income verification, typically requiring annual income of 6-8 times the annual mortgage payment. Employment stability and residency status significantly impact approval odds and terms offered by Japanese financial institutions.

Despite favorable rates, rapid price appreciation means that buyers must carefully consider their long-term Tokyo plans, as transaction costs make short-term ownership financially challenging.

What are example purchase prices for different types of apartments across the city right now?

Current Tokyo apartment prices in September 2025 show distinct pricing tiers based on location and property type, providing clear examples for potential buyers.

In premium Minato Ward, new studio/1K apartments range from ¥110-150 million, while family-sized 2-3LDK units cost ¥150-200+ million. Used apartments in Minato typically range from ¥60-100 million depending on age and specific location within the ward.

Central business districts like Chiyoda and Chuo offer slightly more accessible pricing, with new studios/1K units at ¥100-120 million and family apartments at ¥120-150 million. Used properties in these areas range from ¥55-80 million.

Trendy Shibuya maintains high prices with new studios at ¥90-120 million and family units exceeding ¥130 million. Used apartments in Shibuya span ¥55-90 million based on proximity to major stations and recent renovations.

Affordable outer wards like Adachi and Katsushika present dramatically different pricing, with new apartments starting from ¥28 million for studios and reaching ¥35-50 million for family units. Used properties in these areas range from ¥25-45 million.

These examples demonstrate the ¥100+ million price gap between central and outer Tokyo locations, reflecting transport accessibility and neighborhood prestige differences.

How have apartment prices in Tokyo changed over the past year and compared to five years ago?

Tokyo apartment prices have experienced remarkable growth over both short and long-term periods, with the market showing no signs of significant cooling as of September 2025.

Over the past year, Tokyo apartment prices have increased 5-10% year-over-year, with central locations experiencing even higher growth due to foreign investment demand and ongoing supply shortages. Used condo prices specifically rose by 28% year-over-year as of April 2025, representing one of the strongest growth periods in recent memory.

The five-year perspective reveals even more dramatic appreciation, with new apartment prices up nearly 38% since 2021. Looking at the longer trend, cumulative price increases reach 66% since 2015, representing sustained and substantial wealth creation for property owners during this period.

Several factors drive this sustained growth including limited land availability in central Tokyo, increasing foreign investment, low interest rates encouraging domestic buying, and growing demand from international businesses establishing Tokyo operations. The combination creates persistent upward pressure on prices across all property categories.

Supply constraints particularly impact new construction, where lengthy approval processes and limited developable land in desirable areas maintain price pressure. The used apartment market benefits from this dynamic as buyers seek alternatives to expensive new builds.

What is the forecast for apartment prices in Tokyo over the next 1 year, 5 years, and 10 years?

Tokyo apartment price forecasts suggest continued growth at moderating rates, with market fundamentals supporting sustained appreciation through the next decade.

For the next year through 2026, annual price growth is expected to moderate to 5-6% as the market adjusts to current high price levels and potential interest rate changes. This represents a cooling from recent double-digit growth but maintains positive momentum for property owners.

The five-year outlook through 2030 anticipates continued but slower growth averaging 3-5% annually. This more sustainable pace reflects market maturation, potential supply increases from new development projects, and natural moderation as prices reach higher absolute levels that challenge affordability for some buyer segments.

Long-term projections through 2035 depend heavily on broader economic factors including Japan's demographic trends, immigration policies, and Tokyo's continued role as a global financial center. Sustained international business growth and selective immigration could maintain demand pressure, while population aging in outer areas might create more pronounced price differentiation between central and peripheral locations.

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These forecasts assume continued political stability, no major economic disruptions, and Tokyo's maintenance of its position as Asia's premier international business hub.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

If you want to buy to live in, what are the best options right now compared to buying for investment?

Choosing between living and investment-focused apartment purchases in Tokyo requires different priorities and strategies based on your primary objectives.

For living purposes, prioritize neighborhoods that match your lifestyle needs, work location, and preferred amenities rather than focusing solely on price appreciation potential. Central areas like Shibuya, Shinjuku, and Roppongi offer vibrant urban living with extensive dining, entertainment, and shopping options, while family-oriented areas like Setagaya and Meguro provide quieter residential environments with good schools and parks.

Well-connected outer wards like Adachi and Katsushika present excellent value for residents who can accept longer commutes in exchange for larger living spaces and lower purchase prices. These areas often provide better value per square meter and access to more family-friendly amenities.

Investment buyers should focus on different criteria including rental yield potential, appreciation prospects, and management complexity. High-yield outer ward properties generate 5-6% rental returns but offer limited appreciation potential. Central Tokyo properties provide 2.5-3.5% yields but stronger long-term value growth.

Consider emerging areas with transport improvements or redevelopment projects like Shinagawa and Toyosu, which offer balanced appreciation and yield potential for investment buyers. These locations benefit from infrastructure investment while maintaining reasonable purchase prices.

For investment purposes, how do short-term rentals, long-term rentals, and reselling later at a higher price compare in terms of profitability?

Tokyo real estate investment strategies offer distinct risk-return profiles, with profitability depending on your investment timeline, management capacity, and market knowledge.

Long-term rental yields across Tokyo average 4.2%, with central Tokyo properties generating 2.5-3.5% yields and outer wards achieving 5-6% returns. This strategy provides steady monthly income with minimal management requirements but limited upside potential beyond annual rent increases.

Short-term rentals through platforms like Airbnb and corporate housing can generate gross returns of 4.5-6%, sometimes nearly double long-term yields in prime locations. However, these require significantly more management time, legal compliance with Tokyo's short-term rental regulations, and higher operating costs including cleaning, maintenance, and vacancy periods.

Resale appreciation strategies have proven most profitable in recent years, with central wards experiencing 3-5% annual price increases and select emerging districts like Shinagawa and Toyosu showing 30%+ appreciation over five years. This approach requires less ongoing management but involves higher transaction costs and market timing risks.

The optimal strategy often combines approaches: purchasing in central or emerging areas for appreciation potential while generating rental income during the holding period. Areas like Roppongi, Shibuya, and Asakusa offer both short-term rental potential and strong resale prospects for experienced investors.

How do apartment prices in Tokyo compare with other major global cities like New York, London, or Hong Kong?

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Belonging Japan - Tokyo Apartment Price Guide
2. BambooRoutes - Average Tokyo Apartment Price
3. Tokyo International Meetup - Rent in Tokyo 2025
4. BambooRoutes - Average Apartment Rent Tokyo
5. Matcha JP - Tokyo Neighborhood Guide
6. Japan Property - Market Analysis
7. BambooRoutes - Tokyo Price Forecasts
8. BambooRoutes - Tokyo Property Market
9. Numbeo - Global Property Investment Rankings
10. Bloomberg - Global Luxury Property Trends