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
Tokyo apartment prices in 2025 have reached historic highs, with new apartments averaging ¥116.3 million in central wards. The Tokyo residential market shows significant price variations between central and suburban areas, with new builds commanding 20-40% premiums over older units.
As of September 2025, the Tokyo property market continues its upward trajectory, driven by limited supply and sustained demand from both domestic and international buyers. Understanding these price dynamics is crucial for anyone considering purchasing an apartment in Japan's capital city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.
Tokyo apartment prices vary dramatically by location, with central wards averaging ¥116.3 million for new units and ¥44.5 million for used apartments.
Price per square meter ranges from ¥1.1-1.5 million in central areas to ¥400,000-800,000 in suburban locations.
| Apartment Type | Central Tokyo Price Range | Size (sqm) |
|---|---|---|
| Studio (1R/1K) | ¥25-30 million | 15-25 |
| 1LDK | ¥40-60 million | 30-50 |
| 2LDK | ¥70-100 million | 50-70 |
| 3-4 Bedroom | ¥120+ million | 80-150 |
| Price per sqm (New) | ¥1.1-1.5 million | - |
| Price per sqm (Used) | ¥800,000-1 million | - |
| Additional Costs | 4-8% of purchase price | - |
What is the current average price of an apartment in Tokyo?
The average price of a new apartment in Tokyo's central 23 wards is ¥116.3 million ($820,000) as of September 2025.
Used apartments in central Tokyo average ¥44.5 million ($314,000), representing a significant discount compared to new construction. This price gap reflects the premium Japanese buyers place on brand-new properties with modern fixtures and earthquake-resistant construction standards.
The Tokyo apartment market shows considerable variation between central and suburban areas. While central ward prices command premium rates, outer wards offer apartments starting from ¥28-35 million for comparable sizes. The 23 special wards that make up central Tokyo consistently show the highest property values in Japan.
These prices represent the current market reality following several years of steady appreciation in the Tokyo residential market.
How do prices differ between new apartments and older ones?
New apartments in central Tokyo command a 20-40% premium over used properties, with new builds averaging ¥1.1-1.5 million per square meter compared to ¥800,000-1 million for older units.
This premium reflects several factors including modern building standards, energy efficiency, updated earthquake resistance codes, and the cultural preference for new construction in Japan. New apartments also typically offer better layouts, modern amenities, and longer building lifespans.
Used apartments offer better value for budget-conscious buyers, with many properties from the 1990s and 2000s available at substantial discounts. However, buyers should factor in potential renovation costs and building maintenance history when considering older properties.
The age premium is particularly pronounced in Tokyo compared to other global cities, making used apartments an attractive entry point for first-time buyers.
What is the typical price per square meter for apartments in Tokyo?
Price per square meter in central Tokyo ranges from ¥1.1-1.5 million for new apartments and ¥800,000-1 million for used properties as of September 2025.
Suburban and outer ward properties show significantly lower rates, typically ranging from ¥400,000-800,000 per square meter. This represents substantial savings for buyers willing to accept longer commute times to central business districts.
Premium neighborhoods like Minato, Chiyoda, and Shibuya can exceed ¥1.5 million per square meter for luxury new builds, while budget-friendly areas like Adachi and Katsushika offer properties from ¥400,000-500,000 per square meter.
These per-square-meter prices make Tokyo more affordable than cities like New York or Hong Kong but still position it among the world's more expensive real estate markets.
How do prices vary by apartment size and layout?
| Apartment Type | Central Tokyo Price | Outer Wards Price |
|---|---|---|
| Studio (1R/1K) 15-25m² | ¥25-30 million | ¥13-18 million |
| 1LDK 30-50m² | ¥40-60 million | ¥25-35 million |
| 2LDK 50-70m² | ¥70-100 million | ¥45-65 million |
| 3LDK 70-90m² | ¥100-140 million | ¥65-90 million |
| 4+ Bedrooms 100-150m² | ¥150+ million | ¥90-120 million |
Which Tokyo areas have the most expensive, up-and-coming, and budget-friendly apartments?
The most expensive Tokyo neighborhoods for apartments include Minato ward (averaging ¥110-198 million), Chiyoda, Shibuya, and Chuo wards, where luxury properties can reach ¥1.5 million per square meter.
Up-and-coming areas showing strong price appreciation include Nakano (¥800,000/sqm), Koenji (¥850,000/sqm), and Sumida ward (¥750,000/sqm). These neighborhoods are experiencing double-digit annual price increases while remaining more accessible than central wards.
Budget-friendly options are found in Adachi, Katsushika, and Edogawa wards, where apartments start from ¥28-35 million and cost ¥400,000-500,000 per square meter. These areas offer better value for families and first-time buyers.
It's something we develop in our Japan property pack.
The price differential between premium and budget areas can exceed 300%, making neighborhood selection crucial for buyers balancing budget and lifestyle preferences.
What are real examples of apartment prices across different Tokyo neighborhoods?
A luxury 3LDK apartment in Minato ward covering 82.17 square meters recently listed for ¥199 million, representing ¥2.4 million per square meter in this premium location.
Studio apartments in budget-friendly Adachi and Katsushika wards are available for ¥13-18 million for 20 square meters, translating to ¥650,000-900,000 per square meter. These represent some of Tokyo's most affordable apartment options.
Mid-range neighborhoods like Nakano offer 2LDK apartments around ¥55-70 million, while similar properties in Shibuya command ¥90-120 million for comparable sizes and conditions.
These real-world examples demonstrate the significant price variations across Tokyo's diverse neighborhoods and apartment types.
What additional costs must be added to the apartment's listed price?
Buying an apartment in Tokyo requires additional costs totaling 4-8% or more of the purchase price beyond the listed amount.
Upfront costs include real estate agent fees (3% plus ¥60,000 plus 10% VAT), registration and stamp taxes (1-1.5% plus ¥10,000-60,000), and acquisition tax (3-4% of purchase price). Mortgage setup costs add another 2-2.2% of the loan amount plus insurance premiums.
Annual ongoing expenses include fixed asset tax (1.4%) and city planning tax (0.3%) based on assessed property value. Monthly maintenance fees range from ¥10,000-30,000 for typical 2-bedroom apartments, with repair fund contributions of ¥5,000-15,000 monthly.
Parking spaces, where available, cost an additional ¥20,000-50,000 per month in central Tokyo locations.
What would typical monthly mortgage payments look like for an average Tokyo apartment?
Current mortgage interest rates in Japan range from 3.69% for Flat 35 fixed-rate loans to 4.11% for commercial bank 5-year fixed rates as of September 2025.
For a typical used apartment costing ¥44.5 million with a 20% down payment (¥8.9 million), the remaining loan of ¥35.6 million would result in monthly payments of approximately ¥164,000 for principal and interest over 30 years at 3.7% interest.
Foreign buyers may need to provide larger down payments of up to 30%, which would reduce monthly payment obligations but increase upfront capital requirements. Banks typically require stable employment and income documentation for mortgage approval.
These payment levels make Tokyo apartments accessible to middle-income professionals, though buyers should factor in additional monthly costs for maintenance, taxes, and utilities.
Don't lose money on your property in Tokyo
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How have Tokyo apartment prices changed over recent years?
Tokyo apartment prices have experienced significant appreciation over both short and long-term periods, with new apartment prices increasing 5-7% in the past year and used apartments rising 3-4%.
Over the five-year period from 2020-2025, new apartment prices have surged 66%, while used apartments have shown steady increases of 29% or more. Central wards have experienced the most dramatic price appreciation during this period.
The 10-year trend shows even more dramatic growth, with new apartment prices rising from ¥67.3 million in 2015 to ¥110-116 million in 2025, representing a 66% increase over the decade.
This sustained price appreciation reflects Tokyo's limited land supply, population density, and continued economic strength despite demographic challenges facing Japan overall.
What are the forecasts for Tokyo apartment prices over the next 1, 5, and 10 years?
Short-term forecasts for the next year predict continued price increases of 5-6% for new apartments and 3-4% for used properties, though the pace of growth is expected to moderate from recent highs.
Five-year projections suggest cumulative price increases of 20-30% in central wards through 2030, driven by ongoing supply constraints and sustained demand from domestic and international buyers.
Long-term 10-year forecasts anticipate continued growth in major cities, particularly central Tokyo, while outer areas and rural regions may experience stagnation. The Tokyo apartment market is expected to remain resilient due to its economic importance and limited developable land.
It's something we develop in our Japan property pack.
These projections assume stable economic conditions and continued urban concentration trends in Japan.
What are the smartest apartment investment strategies in Tokyo right now?
For buyers planning to live in their apartment, suburban areas offer 30-40% savings compared to central locations, with up-and-coming wards providing good value and family-friendly environments with larger unit availability.
Short-term rental strategies work best in central locations near transit hubs with smaller units, though buyers must carefully research local regulations governing vacation rentals and licensing requirements.
Long-term rental investments perform well with compact 1-2 bedroom apartments near train stations, offering stable tenant demand and lower vacancy rates. Tokyo's rental market provides 3-4% gross yields with lower risk profiles than other Japanese cities.
Buy-to-resell strategies should focus on central luxury properties in prime locations or older buildings in gentrifying neighborhoods where redevelopment potential exists.
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 apartment prices compare with other major global cities?
| City | Average Price per m² (USD) | Relative to Tokyo |
|---|---|---|
| Tokyo | $7,411 | Baseline |
| New York | $15,000-25,000 | 200-330% higher |
| London | $12,000-20,000 | 160-270% higher |
| Paris | $8,000-15,000 | 10-100% higher |
| Hong Kong | $20,000-30,000 | 270-400% higher |
| Singapore | $10,000-18,000 | 35-140% higher |
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.
The Tokyo apartment market in 2025 presents both opportunities and challenges for prospective buyers.
While prices have reached historic levels, the city remains more affordable than other major global financial centers and offers strong long-term appreciation potential.
Sources
- BambooRoutes - Average Tokyo Apartment Price
- BambooRoutes - How Much Apartment Japan
- BambooRoutes - How Much Apartment Tokyo
- InvestAsian - Tokyo Property Investment Areas
- Tokyo Portfolio - Japan Real Estate Market Trends
- Eitaro Blog - Affordable Tokyo Neighborhoods 2025
- RealEstate.co.jp - Tokyo Property Listings
- Tokyo Portfolio - Hidden Costs Buying Property Japan
- Real Estate Tokyo - Property Cost Tax
- EmLabo - Complete Guide Total Cost Buying Real Estate Central Tokyo