What is the average apartment price in Tokyo?

Authored by the expert who managed and guided the team behind the Japan Property Pack

Yes, the analysis of Tokyo's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Tokyo, 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 Japan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tokyo, Osaka, and Kyoto. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of apartments are available in Tokyo and how do their prices differ?

Tokyo offers several distinct apartment types, each with specific characteristics and price ranges that cater to different budgets and lifestyle needs.

The most common types include 1R (one room) studios that combine living and kitchen space in 13-20m², 1K apartments with separate kitchens, 1DK units featuring a dining-kitchen area separated from the main room, and 1LDK apartments with distinct living, dining, and kitchen spaces. Larger families typically choose 2LDK, 3LDK, or bigger configurations with multiple bedrooms plus living-dining-kitchen areas.

Building quality significantly impacts pricing, with older "apato" (wooden, low-rise structures) offering basic amenities at lower costs, while modern "mansion" (reinforced concrete buildings) provide superior security, amenities, and earthquake resistance at premium prices. These mansion-style buildings dominate the higher-end market and command substantially higher prices due to their quality construction and comprehensive facilities.

Studio apartments in central Tokyo typically cost ¥25-30 million, while similar units in outer wards range from ¥15-20 million. Mid-size 1LDK units (30-50m²) cost ¥40-60 million in central areas versus ¥25-35 million in peripheral districts.

It's something we develop in our Japan property pack.

Which Tokyo neighborhoods offer the most expensive, affordable, and promising investment opportunities?

Category	Neighborhoods	Price per m²	Key Characteristics
Most Expensive	Chiyoda	¥2,500,000	Government district, prime commercial area
Most Expensive	Minato	¥2,000,000	International business hub, luxury residential
Most Expensive	Shibuya	¥1,500,000	Entertainment center, major redevelopment
Most Affordable	Adachi	¥500,000	Family-friendly, good transport links
Most Affordable	Itabashi	¥600,000	Residential area with development potential
Most Affordable	Nerima	¥650,000	Quiet residential, parks and green space
Up-and-Coming	Itabashi (emerging)	¥750,000	Infrastructure improvements, new developments

What are the average apartment prices in Tokyo by surface area?

Tokyo apartment pricing follows clear patterns based on size and location, with central wards commanding significant premiums over outer areas.

For 30m² apartments, central Tokyo properties average ¥36 million, while emerging neighborhoods offer similar spaces for ¥22-24 million and outer wards for approximately ¥15 million. Mid-size 50m² units cost around ¥60 million in central districts, ¥35-40 million in developing areas, and ¥25 million in peripheral wards.

Larger 70m² apartments represent a popular family size, with central Tokyo prices ranging from ¥91.4-120 million for existing and new properties respectively. Emerging neighborhoods offer these units for ¥52-56 million, while outer wards provide more affordable options at ¥28-35 million.

The average price per square meter in central wards reaches ¥871,600 for existing properties and ¥1.1-1.2 million for new constructions. This pricing structure reflects Tokyo's geographical premium, where proximity to business districts, transportation hubs, and cultural amenities drives substantial value differences across the metropolitan area.

How have Tokyo apartment prices changed over the past year and five years?

Tokyo's apartment market has experienced remarkable growth momentum, particularly accelerating in recent periods with substantial price increases across most segments.

Over the past year, central Tokyo has seen dramatic price appreciation with existing condos rising 21.5% and used condos jumping 28.3% year-over-year as of April 2025. New condominiums hit record highs in early 2025 before experiencing a 7% correction during spring months, though prices remain well above previous year levels.

The five-year trend shows consistent upward momentum with annual increases typically ranging 5-11% across different property types and locations. This sustained growth reflects strong underlying demand from both domestic and international buyers, limited supply in desirable areas, and Tokyo's continued economic importance as a global financial center.

Market dynamics have been particularly favorable for central ward properties, where land scarcity and development restrictions maintain supply constraints while demand from businesses and affluent residents continues growing. Outer ward properties have also participated in this growth trend, though at more moderate rates reflecting their different market positioning and buyer demographics.

What are the forecasts for Tokyo apartment prices over the next 1, 5, and 10 years?

Tokyo apartment price forecasts indicate continued growth with varying rates depending on location and market segment, though at more moderate paces than recent years.

For the next year, analysts project 5-6% annual price growth in central Tokyo areas, with the luxury segment potentially achieving 6-7% increases due to continued strong demand from high-net-worth individuals and international buyers. This growth rate represents a moderation from recent double-digit increases but maintains positive momentum.

The five-year outlook suggests slower but steady appreciation, especially in central wards where strong demand and limited supply dynamics continue supporting value growth. Outer areas may experience stagnation or mild growth due to demographic pressures and changing population patterns favoring urban concentration.

Over ten years, central Tokyo properties are expected to remain resilient and continue appreciating, while suburban and outer areas face potential pressure from Japan's aging population and declining birth rates. Infrastructure investments and redevelopment projects will likely create localized growth opportunities, making location selection increasingly important for long-term investment success.

What additional costs should I expect when buying an apartment in Tokyo?

Tokyo apartment purchases involve several mandatory additional costs that typically total 6-8% of the property purchase price, requiring careful budget planning beyond the base price.

Transaction fees include real estate agent commissions, property transfer registration costs, stamp duties, and various administrative charges that collectively represent the largest additional expense category. Monthly ongoing costs include management fees ranging ¥10,000-30,000 depending on building amenities and size, plus mandatory repair reserve fund contributions.

Annual property tax amounts to 1.4% of the assessed property value, while mandatory fire and earthquake insurance provides essential protection in Japan's seismic environment. Financing costs add loan origination fees and bank administrative charges often reaching 2.2% of the loan amount.

These additional expenses significantly impact the total investment required, making a ¥50 million apartment actually cost approximately ¥53-54 million when including all transaction fees, plus ongoing monthly and annual obligations that affect long-term ownership economics.

What are current mortgage conditions in Tokyo and how much can I borrow?

Tokyo mortgage markets in June 2025 offer historically attractive rates with flexible lending terms, though foreign buyers face additional requirements and restrictions.

Variable mortgage rates currently range 0.595-0.73%, while fixed-rate options include 35-year terms at 1.93% and 5-year fixed rates averaging 4.11%. These rates reflect Japan's continued low interest rate environment and competitive banking sector, making property financing relatively affordable compared to many global markets.

Borrowing capacity typically allows mortgage payments up to 35% of gross annual income, with maximum loan amounts reaching 8-10 times annual salary for qualified borrowers. For example, someone earning ¥10 million annually could potentially borrow ¥80-100 million, resulting in monthly payments of ¥268,000 for variable rates or ¥326,000 for 35-year fixed terms on a ¥100 million loan.

Foreign buyers face stricter requirements including visa status verification, higher down payment demands, and limited bank options, though several major institutions do provide international lending services. Income documentation, employment stability, and Japanese language capability often influence approval decisions and terms offered.

It's something we develop in our Japan property pack.

Can you provide specific examples of apartment purchase prices in Tokyo during 2025?

Real Tokyo apartment transactions in 2025 demonstrate clear pricing patterns across different neighborhoods and property types, providing concrete benchmarks for potential buyers.

Central 23 wards show significant price ranges, with new 70m² apartments selling for ¥110-150 million while existing properties of similar size average ¥91.4 million. This difference reflects the premium buyers pay for new construction, modern amenities, and latest building standards including enhanced earthquake resistance and energy efficiency.

Emerging neighborhoods offer more accessible pricing, with 70m² apartments typically selling for ¥52-56 million, representing substantial savings compared to central locations while still providing good access to employment centers and urban amenities. Outer ward properties provide the most affordable options, with similar-sized units available for ¥28-35 million.

Studio and smaller apartments show proportional pricing patterns, with central Tokyo 1R units selling for ¥25-30 million compared to ¥15-20 million in outer areas. These examples illustrate how location premiums scale consistently across property types, helping buyers understand value propositions for different areas and apartment sizes.

What are the smartest apartment investment strategies in Tokyo right now based on budget and goals?

1. **Budget Under ¥40 Million Strategy**: Focus on studios or 1LDK units in outer wards or up-and-coming areas like Itabashi and Nerima for rental yield optimization, targeting steady income generation from reliable tenant demand.2. **Mid-Range ¥50-80 Million Strategy**: Target 1-2LDK apartments in emerging central neighborhoods with confirmed redevelopment plans, balancing current affordability with future capital appreciation potential.3. **Premium ¥100+ Million Strategy**: Invest in prime central wards including Minato and Chiyoda for long-term stability, luxury rental market access, and preservation of wealth through established prestige locations.4. **Buy-to-Let Focus**: Select affordable, high-demand areas near universities, business districts, and transportation hubs where consistent rental income and tenant turnover management create sustainable cash flow.5. **Capital Appreciation Focus**: Choose areas with major infrastructure projects, redevelopment plans, or emerging business district expansion where future value growth exceeds current market pricing.

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.

Should I buy a Tokyo apartment to live in, rent short-term, rent long-term, or resell for profit?

The optimal Tokyo apartment strategy depends on your investment timeline, risk tolerance, and regulatory compliance capabilities, with each approach offering distinct advantages and challenges.

Buy-to-live strategies work best in central wards where property values remain stable, quality of life stays high, and proximity to business districts justifies premium costs. This approach provides housing security, potential appreciation, and eliminates rental payments while building equity over time.

Short-term rental operations face significant legal restrictions, with Airbnb and similar platforms only permitted in designated areas and often prohibited in central ward buildings. Success requires thorough regulatory research, building management approval, and compliance with local licensing requirements that vary by district.

Long-term rental investments benefit from consistent tenant demand, especially near business districts, universities, and transportation hubs. This strategy provides steady cash flow, simpler management requirements, and fewer regulatory complications compared to short-term rentals, making it suitable for investors seeking passive income.

Resale strategies prove most profitable in up-and-coming areas with confirmed development plans or central wards with ongoing infrastructure improvements. Success requires market timing, renovation capabilities, and understanding of buyer preferences in different neighborhoods and price segments.

How do Tokyo apartment prices compare to other major global cities?

City	Average Price per m²	Relative Affordability	Market Characteristics
Tokyo	¥1,100,000-1,200,000	Moderate	Stable growth, diverse options
New York	¥1,500,000-2,000,000	Expensive	Premium global market
London	¥1,300,000-1,800,000	Expensive	International investment hub
Paris	¥1,200,000-1,600,000	Expensive	Historic prestige market
Seoul	¥900,000-1,200,000	Comparable	Rapid growth, tech sector
Singapore	¥1,400,000-1,900,000	Expensive	Limited supply, high demand
Hong Kong	¥2,000,000-3,000,000	Very Expensive	Extreme space constraints

What legal and practical issues should foreigners know before buying a Tokyo apartment?

Foreign buyers can legally purchase Tokyo apartments without citizenship or residency requirements, but several practical considerations affect the buying process and ongoing ownership experience.

Financing presents the primary challenge, as Japanese banks impose stricter requirements on foreign borrowers including visa status verification, higher down payment demands (often 30-50%), and limited institutional options. Income documentation, employment stability in Japan, and Japanese language capability significantly influence loan approval and terms offered.

Property ownership structures include both freehold and leasehold options, with freehold strongly preferred for long-term investment security. Building age, earthquake resistance standards, and management company quality require careful due diligence, as older structures may lack modern safety features or face expensive renovation requirements.

Short-term rental restrictions affect many buildings and neighborhoods, with Airbnb operations prohibited in numerous central ward properties and subject to complex local regulations. Language barriers in legal documentation necessitate bilingual agents or translators, while annual property taxes and potential capital gains taxes on resale require ongoing financial planning.

It's something we develop in our Japan property pack.

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. Real Estate Japan - Apartment Types Guide
2. Bamboo House - Japan Apartment Types
3. Blueground - Finding Apartments in Tokyo
4. BambooRoutes - Tokyo Apartment Costs
5. BambooRoutes - Tokyo Average Prices
6. InvestAsian - Tokyo Investment Areas
7. Japan Property - Market Analysis
8. Global Property Guide - Japan Price Trends