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As of June 2025, a new apartment in Tokyo's 23 wards costs an average of ¥116.3 million (approximately US$820,000).
The Tokyo apartment market has experienced significant growth over the past five years, with prices increasing by 37.5% since 2021. Central neighborhoods like Minato and Shibuya command premium prices ranging from ¥110-150 million for standard units, while outer wards like Adachi and Katsushika offer more affordable options starting from ¥28 million.
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Tokyo apartment prices in June 2025 average ¥116.3 million for new units in the 23 wards, with significant variations by district ranging from ¥28 million in outer wards to over ¥150 million in premium central locations.
The market has grown 37.5% over five years with annual growth rates expected to moderate from 5-7% in 2025-2026 to 3-5% by 2030, making Tokyo more affordable than New York or London but still among Asia's priciest cities.
| Property Type | Average Price Range | Price per Square Meter |
|---|---|---|
| New Apartment (23 Wards) | ¥116.3 million | ¥1,100,000-¥1,500,000 |
| Used Apartment (23 Wards) | ¥44.51 million | ¥800,000-¥1,000,000 |
| Greater Tokyo Area (New) | ¥104.85 million | ¥580,000-¥800,000 |
| Central Wards Premium | ¥110-150 million | ¥1,100,000-¥1,200,000 |
| Outer Wards (Affordable) | ¥28-35 million | ¥400,000-¥500,000 |
| Studio (1K) Monthly Rent | ¥80,000-¥95,000 | N/A |
| 2LDK Purchase Price | ¥100-150 million+ | Varies by location |
How much does an average apartment cost in Tokyo right now?
As we reach mid-2025, a newly built apartment in Tokyo's 23 wards costs an average of ¥116.3 million (approximately US$820,000).
This figure represents the average across all central Tokyo wards, but prices vary significantly based on location and property specifications. For those looking at the greater Tokyo metropolitan area, which includes surrounding prefectures, the average drops to ¥104.85 million (approximately US$700,000) for new constructions.
The used apartment market offers more affordable entry points, with average prices in the 23 wards sitting at ¥44.51 million (approximately US$310,000). This substantial price difference between new and used properties creates opportunities for different types of buyers in the Tokyo real estate market.
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How does the average apartment price in Tokyo differ by neighborhood or district?
Tokyo's apartment prices show dramatic variations across different neighborhoods, with central wards commanding significantly higher prices than outer districts.
The most expensive areas include Minato, Chiyoda, and Shibuya, where standard apartment units range from ¥110 million to ¥150 million (US$780,000 to US$1,070,000). Premium locations within these central wards, particularly in Minato and Chiyoda, see prices reaching ¥1,100,000 to ¥1,200,000 per square meter.
Emerging neighborhoods like Nakano offer middle-ground pricing, with 70-square-meter units averaging ¥52 to ¥56 million. Meanwhile, outer wards such as Adachi and Katsushika provide the most affordable options, with similar-sized properties priced between ¥28 million and ¥35 million.
The price differential between central and outer wards can be as much as 400%, making location the single most important factor in Tokyo apartment pricing.
What are the current average prices by apartment type—like studio, 1LDK, 2LDK, etc.?
Tokyo apartment prices vary significantly based on the number of rooms and overall layout configuration.
| Apartment Type | Monthly Rent (Central Tokyo) | Purchase Price Range |
|---|---|---|
| Studio (1K) | ¥80,000-¥95,000 | ¥30-50 million |
| 1LDK | ¥100,000-¥120,000 | ¥50-90 million |
| 2LDK | ¥190,000-¥224,000 | ¥100-150 million |
| 3LDK | ¥250,000+ | ¥150 million+ |
| Single-family home | ¥300,000+ | ¥200 million+ |
What's the cost per square meter in Tokyo apartments, and how does it vary by location?
The cost per square meter in Tokyo apartments shows extreme variation based on location, with central areas commanding premium prices.
In the central 23 wards, new apartments average between ¥1,100,000 and ¥1,500,000 per square meter, while used apartments in the same areas range from ¥800,000 to ¥1,000,000 per square meter. The most exclusive neighborhoods in Minato and Chiyoda districts reach ¥1,100,000 to ¥1,200,000 per square meter for prime properties.
Suburban areas offer significantly lower prices, with new apartments costing ¥580,000 to ¥800,000 per square meter and used properties ranging from ¥400,000 to ¥600,000. The greater Tokyo metropolitan area averages ¥819,000 per square meter for existing properties.
Outer wards like Adachi, Katsushika, and Edogawa provide the most affordable options at ¥400,000 to ¥500,000 per square meter, representing less than half the cost of central Tokyo properties.
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What are the total costs involved in buying an apartment in Tokyo, including taxes, agent fees, and registration?
When purchasing an apartment in Tokyo, buyers should budget for additional costs totaling 6-8% of the purchase price beyond the property cost itself.
Agent fees represent the largest additional expense, legally capped at 3% of the purchase price plus ¥64,800. For a ¥100 million apartment, this translates to approximately ¥3,064,800 in agent commissions. Stamp tax varies based on property value but typically ranges from ¥10,000 to ¥30,000 for most residential transactions.
Registration and license taxes amount to approximately 0.15-0.2% of the property value, while judicial scrivener fees for handling the legal documentation range from ¥50,000 to ¥100,000. Buyers must also consider ongoing costs including fire insurance, monthly management fees, and contributions to the building's repair fund.
The total transaction costs for buying a Tokyo apartment typically fall between 6% and 8% of the purchase price, excluding mortgage interest and down payment requirements.
How have Tokyo apartment prices changed over the last 5 years and over the past 12 months?
Tokyo apartment prices have experienced substantial growth over the past five years, with new apartments in the 23 wards increasing by 37.5% from 2021 to 2025.
The annual growth rates have shown some variation: 11.5% in 2021, 9% in 2022, 7% in 2023, 4.4% in 2024, and a rebound to 7.8% in 2025 for existing condominiums. Central wards experienced particularly strong growth, with a 21.5% increase per square meter in 2025 alone.
However, the market showed signs of cooling after reaching a peak in March 2025, with prices dropping 7% by April 2025. This correction was primarily attributed to fewer ultra-luxury unit sales rather than a fundamental market weakness.
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The overall trend remains strongly positive, with Tokyo's residential market demonstrating resilience despite global economic uncertainties.
What are the future forecasts for Tokyo apartment prices in 1 year, 5 years, and 10 years?
Tokyo apartment prices are expected to continue growing, though at moderating rates over the coming decade.
For 2025-2026, market analysts project annual growth of 5-7% in Tokyo's residential property market. This represents a slight cooling from the rapid appreciation seen in recent years but still indicates healthy market conditions. The continued urbanization and Japan's economic recovery support these near-term projections.
Looking toward 2027-2030, growth rates are expected to moderate further to 3-5% annually as the market matures. Infrastructure projects like the Linear Shinkansen connecting Tokyo to Osaka will likely support property values, particularly in areas near new stations.
Long-term forecasts through 2035 suggest continued price support from urbanization trends and infrastructure development. However, Japan's aging demographics may create divergent trends, with central Tokyo remaining strong while suburban areas face potential demand challenges.
How do apartment prices in Tokyo compare to other global cities like New York, London, or Paris?
Tokyo remains more affordable than many major global financial centers despite its status as one of the world's largest cities.
| City | Average Price per m² (USD) | Rental Yield |
|---|---|---|
| Tokyo (Central) | $7,411 | 3-4% |
| New York | $15,000-$25,000 | 3-4% |
| London | $12,000-$20,000 | 3-4% |
| Paris | $8,000-$15,000 | 2.5-3.5% |
| Singapore | $16,000-$23,000 | 2.5-3.5% |
| Hong Kong | $20,000-$30,000 | 2-3% |
| Sydney | $10,000-$15,000 | 3-4% |
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.
What are the average mortgage rates and down payment requirements when buying an apartment in Tokyo?
As of June 2025, mortgage rates in Japan have risen but remain relatively manageable compared to many Western countries.
Fixed-rate mortgages through the government-backed Flat 35 program (21-35 year terms) currently offer rates at 3.69%, representing the maximum rate available through this program. City banks offer five-year fixed-rate mortgages with a median rate of 4.11% as of March 2025.
Down payment requirements typically range from 10% to 20% of the purchase price for Japanese residents. Non-residents or those purchasing investment properties may face higher down payment requirements, sometimes up to 30% or more, depending on the lender's risk assessment.
Administrative fees for mortgages include either 2.2% of the loan amount or a flat fee of ¥22,000, depending on the specific loan product chosen. Borrowers should also budget for mortgage insurance and other associated lending costs.
What's the best type of apartment to buy if I plan to live in it vs rent it out (short-term or long-term) vs resell for profit?
The optimal apartment type varies significantly based on your intended use and investment strategy.
1. **For owner-occupiers**: 1LDK or 2LDK apartments in convenient locations close to work and amenities offer the best balance of comfort and value. Newer buildings provide better insulation, earthquake resistance, and typically maintain resale value more effectively than older properties.2. **For long-term rental investment**: Studio or 1LDK units in central wards generate the highest demand and stable occupancy rates. These properties typically yield 3-4% annually and benefit from Tokyo's large population of single professionals and students.3. **For short-term rental (Airbnb)**: 1LDK or larger units in tourist-friendly areas like Shibuya, Shinjuku, or Sumida work best. However, Tokyo has strict regulations on short-term rentals, requiring special permits and limiting operations to 180 days per year in many areas.4. **For resale profit**: Focus on up-and-coming neighborhoods with infrastructure projects or ongoing gentrification. Areas like Sumida (waterfront redevelopment), Nakano (attracting young professionals), and Koto (Olympic legacy infrastructure) offer strong appreciation potential.5. **For maximum flexibility**: 1LDK apartments in established central wards provide the best liquidity and appeal to the broadest range of future buyers or renters.What are the most expensive, most affordable, and most up-and-coming neighborhoods for apartment buyers in Tokyo?
Tokyo's neighborhood dynamics create distinct investment opportunities across different price points and growth trajectories.
The most expensive neighborhoods include Minato, Chiyoda, Shibuya, Aoyama, and Azabu, where a new 70-square-meter apartment typically costs ¥110-150 million. These areas offer prestige addresses, proximity to business districts, international schools, and embassies, maintaining their premium status over decades.
The most affordable neighborhoods are found in outer wards like Adachi, Katsushika, Nerima, and Edogawa, where the same 70-square-meter new apartment costs ¥28-35 million. These areas provide family-friendly environments with larger living spaces and local community amenities.
Up-and-coming neighborhoods attracting investor attention include Sumida (benefiting from waterfront redevelopment), Nakano (popular with young professionals for its accessibility and culture), and Koto (leveraging Olympic legacy infrastructure and new commercial developments). These areas offer potential for capital appreciation while still maintaining reasonable entry prices.
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Can you give a few example apartment prices in popular areas like Shibuya, Meguro, Setagaya, or Koto?
Here are specific price examples for 70-square-meter new condominiums in popular Tokyo neighborhoods as of June 2025.
| Area | Typical 70m² New Condo Price | Price per Square Meter |
|---|---|---|
| Shibuya | ¥100-120 million | ¥1,100,000-1,200,000 |
| Meguro | ¥90-100 million | ¥1,000,000+ |
| Setagaya | ¥52-56 million | ¥750,000-¥800,000 |
| Koto | ¥52-56 million | ¥750,000-¥800,000 |
| Minato | ¥140-150 million | ¥1,200,000-1,500,000 |
| Nakano | ¥52-56 million | ¥750,000-¥800,000 |
| Adachi | ¥28-35 million | ¥400,000-¥500,000 |
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 apartment market in June 2025 presents diverse opportunities for different buyer profiles, from affordable outer ward properties starting at ¥28 million to premium central Tokyo apartments exceeding ¥150 million.
With expected annual growth of 5-7% through 2026 moderating to 3-5% by 2030, the market offers stability for long-term investors while remaining more affordable than comparable global cities like New York or London, making Tokyo an attractive option for both domestic and international property buyers.
Sources
- Japan Property Central - Tokyo Apartment Price Trends
- How Much Does an Apartment Cost in Japan
- Tokyo Apartment Prices Guide
- Global Property Guide - Japan Price History
- Real Estate Japan - Purchase Costs Breakdown
- Tokyo Portfolio - Market Trends Analysis
- Real Estate Tokyo - 2025 Market Predictions
- Statista - Japan Home Loan Interest Rates
- GaijinPot - Average Rent in Tokyo
- Kyodo News - Central Tokyo Condo Prices