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Tokyo's property market in 2025 remains one of the world's most dynamic and complex real estate landscapes.
Apartments and condominiums dominate the market, with average prices reaching ¥104.85 million for new condos and ¥44.51 million for used units as of March 2025. Central wards like Minato and Chiyoda command premium prices of ¥1.1-1.5 million per square meter, while suburban areas offer more affordable options at ¥580,000-800,000 per square meter. The market has experienced remarkable growth, with new condo prices increasing 66% over the past five years.
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Tokyo's property market is dominated by apartments and condos, with central wards commanding prices of ¥1.1-1.5 million per square meter for new properties.
The market has shown strong growth with 66% price increases for new condos over five years, and transaction costs typically amount to 6-8% of purchase price.
| Property Type | Average Price | Price per sqm (Central) | Price per sqm (Suburbs) |
|---|---|---|---|
| New Condo | ¥104.85 million | ¥1,100,000-¥1,500,000 | ¥580,000-¥800,000 |
| Used Condo | ¥44.51 million | ¥800,000-¥1,000,000 | ¥400,000-¥600,000 |
| Detached House | ¥42.13 million | N/A | Varies by location |
| Transaction Costs | 6-8% of purchase price | Includes all fees and taxes | Same across all areas |
| Mortgage Rates | 0.5-1.5% | Down payment: 10-30% | Terms: 20-35 years |
| 5-Year Growth | +66% (new condos) | Double-digit annual increases | +20-40% nationwide |
| Most Expensive Areas | Akasaka: ¥5.9M/sqm | Minato, Chiyoda, Shibuya | Central wards premium |
What types of properties are most common in Tokyo—apartments, houses, or condos?
Apartments and condominiums absolutely dominate Tokyo's property landscape, representing the vast majority of available housing options.
The most prevalent housing type is the "manshon" (マンション), which refers to concrete apartment and condominium complexes of three or more floors. These buildings are popular among singles, couples, and small families, especially in central Tokyo where space is at a premium. "Apāto" (アパート) are generally smaller, wooden, two-story apartment buildings that you'll find more commonly in suburban or less central areas of the city.
Condominiums represent individually owned units within larger apartment buildings and are extremely common for both residence and investment purposes. These properties offer the benefits of apartment living with individual ownership rights, making them attractive to both local and foreign buyers looking for urban convenience.
Single-family detached houses, known as "ikkodate," are significantly less common in central Tokyo due to severe space constraints and high land costs. You'll find more detached houses in suburban wards and the outskirts of the city, where land availability increases and prices become more reasonable for family homes.
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What are the average prices for each type of property in Tokyo?
Property prices in Tokyo vary dramatically based on type, location, and condition, with new condominiums commanding the highest premiums as of June 2025.
| Property Type | Average Price (Tokyo) | Price per sqm (Central Wards) | Price per sqm (Suburbs) |
|---|---|---|---|
| New Condominium | ¥104.85 million (Mar 2025) | ¥1,100,000–¥1,500,000 | ¥580,000–¥800,000 |
| Used Condominium | ¥44.51 million (Apr 2025) | ¥800,000–¥1,000,000 | ¥400,000–¥600,000 |
| Detached House | ¥42.13 million | Rare in central areas | More common option |
| Luxury Properties | ¥150+ million | Central wards premium | Limited availability |
| Entry-level Apartments | ¥30-40 million | Outer wards | ¥25-35 million |
How do prices vary by neighborhood—what are the most expensive, most affordable, and up-and-coming areas?
Tokyo's property prices show extreme variation across neighborhoods, with central prestigious wards commanding astronomical premiums while outer wards remain relatively affordable.
The most expensive areas are concentrated in central Tokyo's elite wards. Akasaka in Minato-ku leads the market at ¥5,900,000 per square meter as of 2025, followed by Rokubancho in Chiyoda-ku at ¥4,830,000 per square meter. Shirokanedai and Minami-Azabu in Minato-ku, along with neighborhoods like Azabu, Hiroo, Daikanyama, Shirokane, Roppongi, and Denenchofu, consistently command prices exceeding ¥4,000,000 per square meter.
The most affordable areas offer excellent value for budget-conscious buyers. Adachi Ward consistently ranks as having the lowest property prices among Tokyo's 23 wards while still offering good access to central Tokyo and daily conveniences. Katsushika Ward provides affordable options with a traditional, family-friendly atmosphere, while Itabashi Ward offers competitive rents and is particularly popular among families seeking value.
Up-and-coming areas are experiencing remarkable price appreciation in 2025. Aobadai in Meguro-ku has seen an 18.9% price increase, while Konan in the Tokyo Bay area of Minato-ku has appreciated 18.6%. Ayase in Adachi-ku stands out with a 16.6% increase, representing exceptional growth potential. Nakano, Suginami, and Taito Wards have all recorded double-digit growth in both commercial and residential land prices.
What is the average cost per square meter in Tokyo, and how does it change depending on location?
Tokyo's cost per square meter varies drastically from central elite neighborhoods to suburban areas, with location being the primary price determinant.
In central Tokyo's 23 wards, new condominiums typically cost ¥1,100,000 to ¥1,500,000 per square meter, while used condominiums range from ¥800,000 to ¥1,000,000 per square meter. The most exclusive areas like Akasaka command up to ¥5,900,000 per square meter, representing the absolute peak of Tokyo's luxury market.
Suburban areas offer significantly more affordable options, with new condominiums priced at ¥580,000 to ¥800,000 per square meter and used properties ranging from ¥400,000 to ¥600,000 per square meter. This represents savings of approximately 40-50% compared to central locations.
Land prices show similar patterns, with Chuo Ward averaging ¥3,282,900 per square meter and Minato Ward at ¥2,800,000 per square meter, while the overall 23-ward average sits at ¥771,600 per square meter. Outlying wards like Adachi, Katsushika, and Itabashi can cost less than a quarter of central ward prices.
These price differentials reflect proximity to business districts, transportation access, neighborhood prestige, and development density, making location the single most important factor in Tokyo property pricing.
What are some real examples of purchase prices for different property types in various Tokyo districts?
Real market examples from 2025 demonstrate the significant price variations across Tokyo's districts and property types.
In Minato Ward's premium areas like Azabu and Roppongi, luxury apartments commonly exceed ¥150 million for 70-80 square meter units. These properties represent the pinnacle of Tokyo's residential market, offering world-class amenities and prestigious addresses that attract wealthy domestic and international buyers.
Shibuya Ward's upscale neighborhoods like Daikanyama and Hiroo average around ¥2.5 million per square meter, meaning a typical 70 square meter condominium costs approximately ¥175 million. These areas combine central location with sophisticated urban lifestyle amenities.
Adachi Ward provides accessible entry points into Tokyo property ownership, with used condominiums available for ¥30-40 million for 60-70 square meter units. These properties offer excellent value while maintaining good transportation links to central Tokyo.
Nakano and Suginami wards, experiencing rapid appreciation, now see used condominiums priced at ¥50-60 million for 70 square meter units. These areas represent the middle market segment with strong growth potential and improving neighborhood amenities.
How much should I expect to pay in additional fees and taxes when buying a property in Tokyo?
Property purchase transactions in Tokyo involve substantial additional costs beyond the purchase price, typically totaling 6-8% of the property value.
Acquisition tax represents the largest one-time cost at 3-4% of the property's appraised value, collected by Tokyo metropolitan government. Registration and license tax varies between 0.4% for new properties and 2.0% for used properties, based on appraised value rather than purchase price.
Annual ongoing taxes include fixed asset tax at 1.4% of appraised value and city planning tax ranging from 0.1-0.3% annually. These taxes continue for the duration of property ownership and are based on government appraisals that may differ from market prices.
Transaction-specific fees include brokerage fees of 3% of sale price plus ¥60,000 plus 10% consumption tax for properties over ¥4 million. Stamp duty ranges from ¥10,000 to ¥480,000 depending on property price, while consumption tax of 10% applies to the building portion of new properties.
Additional costs may include legal fees, property inspection costs, moving expenses, and utility connection fees, making comprehensive budgeting essential for accurate purchase planning.
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How does the mortgage system work in Japan for residents and foreigners—what are the typical rates, terms, and down payment requirements?
Japan's mortgage system offers historically low interest rates but maintains strict qualification requirements, particularly for foreign buyers.
Residents with stable employment typically qualify for mortgages requiring 1-3 years of employment history, proof of income, and down payments of 10-20%. Non-permanent residents may face higher down payment requirements of up to 30%, reflecting lenders' risk assessment of temporary status.
Foreign buyers face more stringent requirements, with permanent residency strongly preferred but not always mandatory. Some banks offer loans to non-residents, but expect stricter documentation requirements, higher down payments, and preference for Japanese income sources. Loan-to-value ratios typically reach 80-90% for residents but may be limited to 50-80% for non-residents.
Interest rates remain historically attractive at 0.5-1.5% for both fixed and variable rate mortgages, subject to Bank of Japan policy changes. Standard mortgage terms range from 20-35 years, providing flexibility for different financial situations and property types.
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How have average property prices in Tokyo changed over the past 1 year and 5 years?
Tokyo's property market has demonstrated remarkable resilience and growth, with particularly strong performance over the past five years.
Over the past year from 2024 to 2025, new Tokyo apartments have appreciated 5-7% while used apartments have gained 3-4%. Detached houses have shown more modest growth at 3.5%, reflecting different demand dynamics between property types and buyer preferences.
The five-year period from 2020 to 2025 reveals extraordinary market performance, with new Tokyo condos appreciating an impressive 66%. This dramatically outpaces the nationwide average of 20-40%, demonstrating Tokyo's premium market position and strong investment demand from both domestic and international buyers.
Central Tokyo land prices have recorded double-digit annual increases in many wards, driven by limited supply, urban redevelopment projects, and continued economic growth. This sustained appreciation reflects Tokyo's status as a global financial center and Japan's primary economic hub.
These trends indicate strong underlying market fundamentals, including population concentration in Tokyo, limited developable land, and continued foreign investment interest in Japanese real estate markets.
What are the forecasted trends for property prices in Tokyo over the next 1, 5, and 10 years?
Tokyo's property market outlook remains positive across all timeframes, with continued appreciation expected driven by fundamental supply-demand imbalances.
For the next year through 2026, new condominiums are forecast to increase 5-6% while used apartments are expected to appreciate 3-4% in Tokyo's urban core. These predictions reflect continued strong demand, limited new supply, and sustained economic growth in the greater Tokyo area.
The five-year outlook through 2030 suggests continued moderate appreciation, particularly in central Tokyo with cumulative growth of 20-30% possible. This growth is supported by ongoing urbanization trends, major infrastructure projects including urban redevelopment, and Tokyo's continued role as Asia's premier financial center.
Ten-year forecasts through 2035 expect major cities like Tokyo to maintain positive growth trends, with ongoing urbanization and redevelopment projects driving sustained demand. Rural and depopulating areas may experience stagnation or decline, creating further concentration of value in metropolitan areas.
These forecasts assume continued economic stability, controlled inflation, and maintenance of Japan's current monetary policy framework supporting real estate investment.
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What are the smartest areas or property types to invest in Tokyo as of today—considering price growth, rental demand, or future development?
Strategic investment opportunities in Tokyo focus on central wards for stability and emerging districts for growth potential, with specific property types offering distinct advantages.
Central wards including Minato, Chiyoda, and Shibuya offer the smartest long-term investments due to stable appreciation, high rental demand, and strong liquidity. These areas provide premium locations with established infrastructure, making properties easier to rent and resell while maintaining consistent value growth.
Up-and-coming districts present exceptional growth opportunities for savvy investors. Ayase in Adachi-ku, Nakano, Suginami, and Tokyo Bay areas like Konan in Minato-ku are experiencing rapid price growth and significant redevelopment. These neighborhoods offer the potential for above-average appreciation as infrastructure improvements and urban development projects enhance their desirability.
Suburban Tokyo provides attractive entry points with better rental yields and lower initial investment requirements. These areas appeal particularly for long-term rental investment strategies, offering steady cash flow with potential for modest appreciation over time.
Property type recommendations focus on new and used condominiums in central and growing wards for urban investment, while detached houses in established suburbs serve family-oriented rental markets. Condominiums offer better liquidity and lower maintenance requirements compared to detached houses.
What are the best strategies if I plan to live in the property versus rent it out short-term or long-term, or sell it later for a profit?
Your investment strategy should align with your primary objective, as each approach requires different location and property type considerations.
For owner-occupation, prioritize neighborhoods offering excellent lifestyle amenities, safety, and infrastructure. Areas like Kichijoji, Meguro, and Setagaya work well for families seeking space and community, while Minato and Shibuya appeal to urban professionals valuing convenience and nightlife. Consider proximity to schools, parks, shopping, and your workplace when making location decisions.
Long-term rental strategies should focus on areas with consistently strong rental demand, particularly central Tokyo locations near universities, business districts, and major transportation hubs. Suburban areas may offer higher rental yields due to lower property prices, but central locations provide more stable tenant demand and easier property management.
Short-term rental opportunities face heavy regulation in Tokyo, requiring careful attention to local ordinances and licensing requirements. Popular tourist areas offer potential returns but involve significant regulatory compliance and management intensity that may not suit all investors.
For resale and profit strategies, target properties in redevelopment zones or emerging neighborhoods with strong appreciation potential. Central wards offer the best liquidity for quick resales, while developing areas may provide higher percentage returns but require longer holding periods to realize full appreciation potential.
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How does the average house price in Tokyo compare with other major global cities like New York, London, Paris, or Seoul?
Tokyo's property prices position the city as moderately expensive compared to other global financial centers, offering relative value in certain segments.
| City | Price per sqm (USD) | Relative Affordability | Market Characteristics |
|---|---|---|---|
| Tokyo | $5,777–$10,895 | Moderate | Strong growth, stable market |
| New York | $6,307–$14,000 | Expensive | Premium at high end |
| London | $9,400–$16,575 | Very Expensive | Highest global prices |
| Paris | $8,871–$12,060 | Very Expensive | Limited supply premium |
| Seoul | $6,069–$12,645 | Comparable | Similar to Tokyo range |
Tokyo demonstrates more affordability than London, Paris, and high-end New York properties, while remaining competitive with Seoul across most market segments. Central Tokyo luxury properties rival these global cities for ultra-high-end purchases, but Tokyo's suburban and mid-tier markets offer better value propositions.
This positioning makes Tokyo attractive for international investors seeking exposure to a major global city without paying the premium associated with London or Paris markets, while offering greater stability than many emerging market alternatives.
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.
Tokyo's property market in 2025 presents compelling opportunities for both investors and residents, with continued growth expected across most segments.
Central wards offer stability and prestige while emerging neighborhoods provide growth potential, making Tokyo an attractive global real estate destination with relative value compared to other major cities.
Sources
- Expats Guide - Housing Types and Terminology
- InvestAsian - Real Estate Tokyo
- Japan Property Central - Market Updates
- BambooRoutes - Apartment Prices Japan
- Real Estate Tokyo - Official Land Prices 2025
- E-Housing - Most Expensive Parts of Tokyo
- Hokushin Property - Japan Land Price 2025
- Tokyo Portfolio - Real Estate Market Trends
- Housing Japan - Buying Taxes and Fees
- Global Property Guide - Japan Price History