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As of September 2025, Tokyo's property market continues to show strong price appreciation with the average 70m² apartment in the city's 23 wards priced at ¥91.4 million (~$653,000). New apartments command significantly higher prices at ¥104.85–¥116.3 million (~$700,000–$820,000), while existing properties offer more affordable entry points at around ¥44.51 million (~$318,000). Central wards like Minato, Shibuya, and Chiyoda command premium prices exceeding ¥1.1–1.5 million per square meter, while outer areas provide more budget-friendly options starting from ¥400,000–800,000 per square meter.
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Tokyo's property market in 2025 shows significant price variations between central and outer wards, with new developments commanding substantial premiums over existing stock.
Investment strategies vary widely depending on whether you're buying for personal residence, rental income, or capital appreciation, with each requiring different neighborhood and property type considerations.
| Property Category | Central Wards Price (70m²) | Outer Wards Price (70m²) | Price per m² |
|---|---|---|---|
| New Condos | ¥115-120M+ ($820k+) | ¥52-56M ($370-400k) | ¥1.1-1.5M (central) / ¥580-800k (outer) |
| Used Condos | ¥80-90M ($570-640k) | ¥28-35M ($200-250k) | ¥800k-1M (central) / ¥400-600k (outer) |
| Luxury Properties | ¥150M+ ($1M+) | Limited availability | ¥2M+ (prime locations) |
| Studio Apartments | ¥25-30M ($180-210k) | ¥15-22M ($110-160k) | Varies by size and location |
| Detached Houses | Rare/Very expensive | ¥42.1M average | Generally lower than condos |
What's the current average property price in Tokyo?
As of September 2025, the average property price in Tokyo's 23 wards stands at ¥91.4 million (~$653,000) for a standard 70m² apartment.
New apartments command significantly higher prices, ranging from ¥104.85 to ¥116.3 million (~$700,000–$820,000) for similar-sized units. These premium prices reflect the strong demand for modern amenities, energy efficiency, and contemporary design that new developments offer.
Existing or used apartments present more affordable entry points at an average of ¥44.51 million (~$318,000) for comparable properties. This substantial price gap between new and existing stock creates opportunities for different investment strategies and budget considerations. The difference stems from factors including building age, amenities, energy efficiency ratings, and maintenance requirements.
The Tokyo residential market has experienced robust growth, with new condominium prices increasing by 66% over the five-year period from 2019 to 2024. This upward trajectory continues into 2025, with year-to-date growth of 10.7% recorded for new apartment sales.
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How much does the price vary between central wards like Shibuya, Shinjuku, Minato, and outer areas?
Price variations across Tokyo's wards are substantial, with central locations commanding premium prices that can be three times higher than outer areas.
Central wards including Minato, Chiyoda, and Shibuya represent the most expensive segments, with typical prices for a 70m² apartment ranging from ¥115 to ¥120 million ($820,000+). These areas offer prime locations, international business districts, embassy presence, and luxury amenities that justify their premium positioning.
Comfortable upper-middle areas such as Setagaya and Bunkyo fall into the ¥80-90 million range ($570,000–$640,000), providing excellent quality of life with good transport connections while maintaining more reasonable pricing than the absolute center.
Mid-range wards including Suginami, Itabashi, and Nerima offer properties in the ¥60-80 million bracket ($430,000–$570,000), representing solid value for families and first-time buyers seeking space and community amenities.
Peripheral wards like Adachi, Katsushika, and Edogawa provide the most affordable options at ¥50-55 million ($360,000–$393,000), featuring suburban characteristics, family-friendly environments, and ongoing infrastructure improvements that may drive future appreciation.
What are the average prices by property type—apartments, single-family homes, luxury condos, and new builds versus older properties?
Property type significantly influences pricing in Tokyo's market, with new condominiums commanding the highest premiums across all categories.
| Property Type | Average Price (2025) | Price per m² (Central) | Price per m² (Suburbs) |
|---|---|---|---|
| New Condominium | ¥104.85–116.3M | ¥1.1–1.5M | ¥580k–800k |
| Used Condominium | ¥44.51M | ¥800k–1M | ¥400k–600k |
| Detached House | ¥42.1M | N/A (rare) | Varies, usually lower |
| Luxury Condominium | ¥150M+ | ¥2M+ (Akasaka) | Limited availability |
| Studio Apartment | ¥25–30M (central) | Varies by size | ¥15–22M (outer) |
New builds consistently command at least a two-fold premium over older existing stock, particularly in central wards where modern amenities and energy efficiency standards are highly valued. Luxury condominiums in prime locations like Akasaka can exceed ¥2 million per square meter, representing the absolute top tier of Tokyo's residential market.
Detached houses average ¥42.1 million but are extremely rare in central areas due to land scarcity and zoning restrictions. Most single-family homes are found in suburban areas where land availability allows for such development.
How do prices break down per square meter or square foot compared to total purchase price?
Per-square-meter pricing in Tokyo varies dramatically based on location and property condition, providing a clearer comparison metric than total purchase prices alone.
Central new condominiums range from ¥1.1 to ¥1.5 million per square meter, representing the premium segment where location and modern amenities justify higher per-unit costs. Central used condominiums typically price between ¥800,000 to ¥1 million per square meter, offering more accessible entry points while maintaining desirable locations.
Outer area properties provide significantly more space for the money, with pricing ranges of ¥400,000 to ¥800,000 per square meter depending on specific location and transport accessibility. These areas often offer better value for buyers prioritizing space over central location convenience.
As practical examples, a 30m² studio apartment in central Tokyo typically costs around ¥36 million, while the same size unit in emerging areas costs ¥22-24 million, and in outer wards drops to approximately ¥15 million. For family-sized 70m² apartments, central prices range ¥91-120 million, emerging areas ¥52-56 million, and outer wards ¥28-35 million.
These per-square-meter metrics help buyers understand true value relationships and identify opportunities across different Tokyo neighborhoods based on their space requirements and budget constraints.
What additional fees, taxes, and legal costs should be expected on top of the listed purchase price?
Transaction costs in Tokyo typically add 6-8% to the total purchase price, representing a significant additional expense that buyers must budget beyond the listed property price.
Agent and broker fees constitute the largest single additional cost at 3% of the purchase price plus ¥60,000, with an additional 10% sales tax applied to this total. For a ¥100 million property, this fee alone amounts to approximately ¥3.3 million.
Registration tax for ownership transfer typically costs around 2% of the assessed property value, while stamp duty follows a sliding scale ranging from ¥10,000 to ¥150,000 depending on the sale price. Mortgage registration, if financing is involved, adds another 0.4% of the loan amount.
Professional services including judicial scrivener fees typically range from ¥50,000 to ¥100,000 for handling the legal documentation and registration processes required for property transfer.
Ongoing annual costs include fixed asset tax at approximately 1.4% of assessed value and city planning tax at around 0.3% of assessed value. These recurring expenses should be factored into long-term ownership budgeting, as they represent ongoing obligations rather than one-time transaction costs.
How do typical mortgage rates and borrowing conditions in Japan affect the total cost of buying in Tokyo?
Japan's historically low mortgage rates create favorable borrowing conditions that significantly impact the total cost of Tokyo property ownership.
Current mortgage rates for residents range from 0.5% to 1.5% for fixed, variable, or hybrid loan products, representing some of the world's most competitive financing costs. These low rates substantially reduce the total interest paid over the loan term compared to higher-rate markets globally.
Loan-to-value ratios typically allow up to 80% financing for most qualified buyers, requiring a 20% down payment as standard practice. Non-permanent residents may face stricter requirements with up to 50% down payment requirements, though this varies by lender and individual circumstances.
Loan terms extend up to 35 years, allowing buyers to spread payments over extended periods and reduce monthly obligations. The government-backed Flat 35 mortgage program offers up to 90% financing for qualifying new builds that meet specific energy efficiency standards.
For a ¥100 million property with 80% financing at 1% interest over 30 years, monthly payments would approximate ¥257,000, making ownership more accessible than equivalent properties in higher interest rate environments. These favorable conditions contribute to Tokyo's property market accessibility for qualified borrowers.
What are example purchase prices right now for small apartments, family homes, and luxury properties?
Current market examples provide concrete benchmarks for different property categories and buyer segments across Tokyo's diverse neighborhoods.
Small studio apartments in central locations typically range from ¥25 to ¥30 million for 15-25m² units, approximately $180,000 to $210,000. These properties appeal to young professionals, investors seeking rental income, or buyers wanting minimal maintenance responsibilities in prime locations.
One-bedroom apartments (1LDK) spanning 30-50m² cost ¥40-60 million in central areas and ¥25-35 million in outer areas. These properties serve single professionals or couples seeking more space than studio configurations while maintaining urban accessibility.
Family-sized 70m² apartments represent the market's mainstream segment, priced at ¥91-120 million in central locations, ¥52-56 million in emerging areas, and ¥28-35 million in outer wards. These properties accommodate families with children and represent the bulk of residential transactions.
Luxury properties featuring 3-4 bedrooms across 80-150m² command ¥120 million and above in central prime locations. These premium units offer high-end finishes, building amenities, and prestigious addresses that justify their substantial price premiums.
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Which neighborhoods are the most expensive, which ones are up-and-coming, and which are considered budget-friendly?
Tokyo's neighborhood hierarchy reflects distinct price tiers based on prestige, convenience, infrastructure, and development potential.
The most expensive neighborhoods center on Chiyoda (¥2.5 million per m²), Minato (¥2 million per m²), and Shibuya (¥1.5 million per m²). Chiyoda commands premium prices due to its government district location, Imperial Palace proximity, and exclusivity. Minato attracts international residents with its embassy district, Aoyama luxury shopping, and expatriate-friendly amenities. Shibuya represents urban dynamism with ongoing redevelopment projects and its position as a major youth culture hub.
Budget-friendly options include Adachi (¥500,000 per m²), Itabashi (¥600,000 per m²), and Nerima (¥650,000 per m²). These northeastern and northwestern areas offer family-oriented environments, older housing stock, and significantly more space for the money while maintaining train connections to central Tokyo.
Up-and-coming neighborhoods show strong development potential, particularly Itabashi with improving transit connections and new developments pushing prices toward ¥750,000 per m². Taito (¥700,000-900,000 per m²) benefits from traditional culture tourism around Asakusa and Ueno while offering more affordable central access. Koto (¥800,000 per m²) features waterfront redevelopment with new tower projects in Toyosu and Ariake areas.
These emerging areas offer the best potential for capital appreciation while providing current affordability relative to established premium districts.
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If you're buying to live in Tokyo, what are the smartest choices today compared to buying for rental income or resale?
Investment strategy should align with your primary objective, as optimal neighborhoods and property types vary significantly between personal residence, rental income, and capital appreciation goals.
For personal residence and lifestyle, central areas like Shibuya and Minato offer unparalleled urban convenience, international amenities, and cultural access if budget permits. These locations provide maximum lifestyle benefits for professionals working in central business districts or those prioritizing urban experiences.
Family-oriented buyers should consider comfortable suburban options like Nerima and Itabashi, which offer more space, quieter environments, better schools, and family amenities while maintaining reasonable commute times to central Tokyo via established train networks.
Rental yield strategies benefit most from Taito (Asakusa/Ueno area) due to strong tourist demand for both short-term and long-term rentals, plus Shinjuku for consistent high occupancy rates. Budget areas like Adachi, Itabashi, and Nerima offer higher rental yields relative to entry costs, though absolute rental amounts are lower.
Capital appreciation targets should focus on redevelopment corridors, particularly Shibuya and Koto where ongoing infrastructure projects and new development drive value increases. Itabashi and Koto represent emerging areas with transit-driven growth potential at more accessible entry prices.
Short-term rental (Airbnb) opportunities exist in tourist-heavy areas like Taito, Shinjuku, and Shibuya, though operators must carefully verify local regulations and licensing requirements that vary by specific location within these wards.
How have property prices in Tokyo changed compared to five years ago and compared to just one year ago?
Tokyo's property market has experienced dramatic price appreciation over both recent and medium-term timeframes, with particularly strong growth in the new condominium segment.
Over the five-year period from 2019 to 2024, new condominium prices increased by an remarkable 66%, representing one of the strongest sustained growth periods in Tokyo's modern real estate history. This growth reflects multiple factors including ultra-low interest rates, construction cost increases, land scarcity, and strong domestic and international demand.
Year-over-year growth patterns show consistent upward pressure with some volatility: 2021 saw 11.55% growth, 2022 recorded 7.3%, 2023 moderated to 3.1%, 2024 accelerated to 8.4%, and 2025 year-to-date shows 10.7% growth indicating continued strong momentum.
The past 12 months have shown particularly strong performance in certain segments, with existing apartment prices rising as much as 28.3% year-over-year as of April 2025. New apartment prices experienced a surge with March 2025 showing 37.5% year-over-year increases, though this was followed by some moderation in subsequent months.
This growth trajectory reflects Tokyo's fundamental supply constraints, continued urbanization trends, international investment interest, and Japan's accommodative monetary policies that maintain borrowing costs at historically low levels.
The sustained appreciation indicates strong underlying demand fundamentals while raising affordability concerns for first-time buyers and prompting discussions about market sustainability at current growth rates.
What are the forecasts for property prices in Tokyo over the next one year, five years, and ten years?
Property price forecasts for Tokyo indicate continued growth at varying rates across different time horizons, with moderation expected from current elevated growth levels.
Short-term forecasts for 2025-2026 predict annual growth of 5-7%, representing a moderation from 2025's year-to-date 10.7% pace but still indicating robust appreciation. This near-term growth reflects continued strong demand fundamentals balanced against affordability constraints and potential monetary policy adjustments.
Medium-term projections for 2026-2030 anticipate further moderation to 3-5% average annual growth, reflecting market maturation and the gradual normalization of the exceptional growth experienced during the post-pandemic period. This range aligns with long-term Japanese economic growth expectations and demographic trends.
Ten-year outlook remains positive based on continued urban population concentration trends, infrastructure improvements, and Tokyo's position as a global financial center. Sustained upward price pressure is expected particularly in central, premium, and emerging areas near key transit nodes and urban redevelopment projects.
Key factors supporting long-term appreciation include Tokyo's ongoing urban redevelopment initiatives, the 2025 Osaka Expo's economic spillover effects, continued low interest rate environment, and international investment flows attracted by Japan's political stability and currency dynamics.
However, potential headwinds include Japan's aging population, potential interest rate normalization, and global economic uncertainties that could impact international investment demand and domestic purchasing power.
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.
How do Tokyo's property prices compare with other major global cities like New York, London, Paris, or Hong Kong?
Tokyo's property prices position the city as more affordable than several major global capitals while offering comparable quality of life and investment stability.
Per square meter pricing shows Tokyo generally cheaper than New York and London's prime districts, though central Tokyo luxury properties can approach Hong Kong levels in the most exclusive areas. Tokyo's average pricing remains below Paris for equivalent new luxury stock, making it relatively attractive for international buyers seeking global city exposure.
Tokyo's competitive advantage lies in its overall affordability relative to income levels, lower transaction costs compared to many international markets, fewer ownership restrictions for foreign buyers, and the stability offered by Japan's low crime rates and political environment.
The city's recent price growth has outpaced many European and US markets, particularly since the pandemic period, yet Tokyo still offers more accessible entry points compared to the world's most expensive property markets. This positioning attracts both lifestyle buyers and investors seeking diversification in stable Asian markets.
Additional advantages include Tokyo's sophisticated rental market with high occupancy rates, strong rule of law protecting property rights, and the potential currency appreciation benefits for foreign buyers as the yen strengthens from historical low levels.
However, buyers should consider Japan-specific factors including earthquake risks, building depreciation rates, and the unique aspects of Japanese property law and market practices when making international comparisons.
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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 across different buyer segments, from first-time purchasers to sophisticated investors seeking portfolio diversification.
Success in Tokyo real estate requires understanding the significant price variations between central and outer wards, carefully budgeting for transaction costs that can reach 6-8% of purchase price, and aligning investment strategy with specific objectives whether for residence, rental income, or capital appreciation.
Sources
- E-Housing - How much is a house in Japan
- BambooRoutes - Average house price Japan
- Japan Property - Market Details
- BambooRoutes - Average house price Tokyo
- BambooRoutes - Average Tokyo apartment price
- InvestAsian - Tokyo property investment areas
- The Luxury Japan - Wealthiest neighborhoods Tokyo
- INA Group - Real estate investment costs Tokyo
- Real Estate Tokyo - Property costs and taxes
- Expatica - Japan mortgage guide