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Tokyo's apartment market in 2025 shows significant price variations depending on location and property type. The average price per square meter for new apartments in Tokyo's 23 wards ranges from ¥1,100,000 to ¥1,500,000, while used apartments typically cost ¥800,000 to ¥1,000,000 per square meter.
Central areas like Minato and Chiyoda command premium prices with new apartments reaching ¥1,100,000 to ¥1,200,000 per square meter, while emerging neighborhoods such as Kiyosumi-Shirakawa and Toyocho offer more affordable options at ¥800,000 to ¥1,000,000 per square meter. Outer wards like Katsushika and Adachi provide the most budget-friendly options at ¥400,000 to ¥500,000 per square meter.
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As of September 2025, Tokyo's apartment prices have risen 37.5% over the past five years, with central wards seeing particularly strong growth.
The rental market remains robust with studio apartments averaging ¥95,000-¥110,000 monthly and family-sized apartments ranging from ¥170,000-¥240,000.
| Area Type | Price per sqm (New) | Typical Unit Price | Monthly Rent (1LDK) |
|---|---|---|---|
| Central (Minato/Chiyoda) | ¥1,100,000-¥1,200,000 | ¥110-150 million | ¥180,000+ |
| Emerging (Kiyosumi-Shirakawa) | ¥800,000-¥1,000,000 | ¥50-90 million | ¥120,000-¥160,000 |
| Outer (Katsushika/Adachi) | ¥400,000-¥500,000 | ¥28-35 million | ¥100,000+ |
| Tokyo Average | ¥800,000-¥1,500,000 | ¥91-116 million | ¥120,000-¥160,000 |
What is the average price per square meter for apartments in Tokyo in 2025?
The average price per square meter for apartments in Tokyo's 23 wards varies significantly between new and used properties.
New apartments command ¥1,100,000 to ¥1,500,000 per square meter, which translates to approximately $7,000 to $10,000 per square meter at current exchange rates. These prices reflect the premium placed on modern construction, updated amenities, and compliance with current building standards.
Used apartments offer more affordable entry points at ¥800,000 to ¥1,000,000 per square meter. The price difference between new and used properties represents a discount of approximately 20-30% for existing stock, though this varies considerably based on the property's age, condition, and specific location within Tokyo.
For a typical 70 square meter apartment, buyers can expect to pay between ¥91 million and ¥116 million, equivalent to roughly $650,000 to $820,000. This price range encompasses both new and used properties across the diverse neighborhoods of Tokyo's 23 special wards.
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How much do apartments typically cost in central areas like Minato and Chiyoda?
Central Tokyo wards like Minato and Chiyoda represent the most expensive residential real estate in the city.
New apartments in these premium locations typically cost ¥1,100,000 to ¥1,200,000 per square meter. Complete units range from ¥110 million to ¥150 million for standard apartments, with luxury properties in Minato reaching up to ¥198.8 million for high-end developments.
These areas command premium prices due to their proximity to major business districts, government offices, and cultural landmarks. Minato ward houses Tokyo's financial center and many multinational corporations, while Chiyoda contains the Imperial Palace and serves as Japan's political center.
The high prices reflect exceptional convenience, with residents enjoying access to multiple subway lines, world-class dining, shopping districts like Ginza and Roppongi, and proximity to Tokyo's major employment centers. Properties in these areas also tend to maintain their value better during market downturns.
What are the prices in emerging neighborhoods such as Kiyosumi-Shirakawa and Toyocho?
Emerging neighborhoods like Kiyosumi-Shirakawa and Toyocho offer more accessible pricing while maintaining strong growth potential.
These areas typically see prices of ¥800,000 to ¥1,000,000 per square meter for new construction. This represents the mid-range of Tokyo's apartment market, offering a balance between affordability and investment potential.
1LDK and 2LDK units in these neighborhoods average ¥50 million to ¥90 million. Kiyosumi-Shirakawa has gained popularity among young professionals and artists due to its trendy cafes, art galleries, and proximity to central Tokyo via the Hanzomon and Oedo subway lines.
Toyocho benefits from ongoing urban development projects and improved transportation links. These emerging areas often experience faster price appreciation than established expensive neighborhoods, making them attractive for both residents seeking value and investors looking for growth potential.
The appeal of these neighborhoods lies in their authentic Tokyo atmosphere combined with modern amenities and reasonable commute times to central business districts.
How do these compare to outer wards like Katsushika and Adachi?
Outer wards like Katsushika and Adachi offer the most affordable apartment options in Tokyo's 23-ward system.
New apartments in these areas typically cost ¥400,000 to ¥500,000 per square meter, representing less than half the price of central locations. Complete apartment units average ¥28 million to ¥35 million, making homeownership significantly more accessible.
These outer wards attract families, first-time buyers, and investors seeking higher rental yields. While commute times to central Tokyo are longer, typically 45-60 minutes, residents benefit from larger living spaces, more green areas, and stronger community atmospheres.
The price differential reflects the trade-off between location convenience and affordability. Properties in outer wards often provide better value in terms of space per yen, with larger apartments and sometimes parking spaces included in the purchase price.
These areas have seen steady development of shopping centers, schools, and transportation improvements, gradually reducing the convenience gap with central locations while maintaining their price advantages.
What are the average monthly rental costs for studio and family-sized apartments in Tokyo?
| Apartment Type | Tokyo Average | Central Wards | Outer/Suburban |
|---|---|---|---|
| Studio (1K/1R) | ¥95,000-¥110,000 | ¥110,000+ | ¥80,000-¥95,000 |
| 1LDK | ¥120,000-¥160,000 | ¥180,000+ | ¥100,000+ |
| 2LDK Family | ¥170,000-¥240,000 | ¥300,000+ | ¥140,000+ |
| 3LDK | ¥220,000-¥300,000+ | ¥400,000+ | ¥180,000+ |
How have apartment prices changed over the past five years and one year?
Tokyo's apartment market has experienced substantial growth over both recent timeframes.
Over the past five years since 2020, apartment prices in Tokyo have risen approximately 37.5%. This represents one of the strongest sustained growth periods in Tokyo's modern real estate history, driven by low interest rates, urban migration, and limited housing supply in desirable areas.
The past year has shown even more dramatic increases, with central ward resale condominium prices rising 21.5% year-over-year. Used condominiums across Tokyo saw a remarkable 28% price increase as of April 2025, reflecting strong demand and continued supply constraints.
This rapid appreciation has been particularly pronounced in redeveloping areas and properties with modern amenities. The growth reflects both domestic demand from Tokyo residents upgrading their housing and international investment interest in Japanese real estate.
The acceleration in price growth over the past year indicates a market experiencing significant momentum, though experts debate whether this pace is sustainable long-term.
What are the projected price trends for the next one, five, and ten years?
Tokyo's apartment market is projected to continue growing, though at more moderate rates than recent years.
For 2025-2026, market analysts anticipate annual growth of 5-7%, gradually moderating to 3-5% through 2030. This represents a normalization from the exceptional growth rates experienced in 2024-2025.
Over the next five years, central Tokyo and redeveloping districts like Shinagawa and Toyosu could see 30-40% total appreciation. These areas benefit from major infrastructure projects, commercial development, and continued urban planning initiatives that enhance their desirability.
The ten-year outlook remains positive but depends on broader economic factors including interest rates, demographics, and government housing policies. Prime new luxury units are expected to continue outperforming the market, while moderate and midmarket segments may see less volatility.
Rental growth is projected at 2-3% annually in high-demand areas, supporting investment fundamentals for buy-to-let strategies. However, outer wards and older properties may experience more modest appreciation rates.
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How do Tokyo's apartment prices compare to those in other major cities like New York, London, and Hong Kong?
Tokyo remains expensive by Japanese standards but more affordable than other global financial centers.
New prime apartments in Tokyo cost ¥1,100,000 to ¥1,500,000 per square meter, equivalent to approximately $7,000-$10,000 per square meter. This positions Tokyo as significantly less expensive than its international peers in premium locations.
Manhattan prime real estate averages around ¥2,100,000 per square meter ($14,000 per square foot), making it roughly 40-90% more expensive than comparable Tokyo properties. London's central prime locations cost approximately ¥2,200,000 per square meter (£13,000 per square meter), representing a similar premium over Tokyo.
Hong Kong commands the highest prices globally at ¥2,400,000 per square meter and higher for prime locations. This makes Hong Kong apartments 60-120% more expensive than Tokyo's most expensive areas.
Tokyo's relative affordability, combined with its status as a major global city, contributes to its appeal for international property investors seeking exposure to premium Asian real estate markets.
What are the total costs involved in purchasing an apartment, including transaction fees, taxes, and maintenance fees?
Purchasing an apartment in Tokyo involves several additional costs beyond the property price.
Transaction and agent fees typically amount to about 3% of the purchase price plus ¥60,000 plus consumption tax. Acquisition tax varies by property type, with 3% for land and 4% for building components, though reductions may apply for residential properties.
Stamp duty ranges from ¥10,000 to ¥480,000 depending on the property price, while additional administrative and registration fees typically add several hundred thousand yen. These upfront costs combined generally total 5-6% of the purchase price for cash buyers.
For buyers using financing, total extra costs typically reach 7-8% of the purchase price when including loan arrangement fees and mortgage-related expenses. Annual ongoing costs include Fixed Asset Tax at 1.4% of assessed value and City Planning Tax at 0.3% of assessed value.
Condominium owners must budget for monthly maintenance fees ranging from ¥10,000 to ¥50,000 depending on the building's size, age, and amenities. These fees cover common area maintenance, building management, and reserve funds for major repairs.
What are the mortgage options available for foreigners looking to buy property in Tokyo?
Foreign buyers face no legal restrictions on property ownership in Japan, though mortgage access can be challenging.
Permanent residents enjoy the best financing options, with access to standard mortgages covering up to 80-110% of the property value and maximum terms of 35 years. Interest rates for qualified borrowers range from 0.5% to 1.5% for variable rate loans.
Non-permanent residents have more limited options but can still access financing through specialized lenders like Tokyo Star Bank. These loans typically require larger down payments of 20-50% and may have shorter maximum terms, though some institutions offer competitive rates for well-qualified applicants.
The "Flat 35" fixed-rate mortgage program offers 21-35 year terms with rates up to 3.69% as of March 2025. This government-backed program provides rate certainty but typically requires higher qualification standards for foreign applicants.
Required documentation includes proof of residency status, income verification, employment history, and credit background. Non-permanent residents face higher documentation requirements and more stringent qualification criteria than Japanese nationals or permanent residents.
How do interest rates and loan terms affect monthly payments?
Interest rates and loan terms significantly impact the affordability of Tokyo apartment purchases.
Variable rate mortgages at 0.5-1.5% offer the lowest monthly payments but carry interest rate risk. For a ¥100 million apartment with 20% down payment, a 1% variable rate over 35 years would result in monthly payments of approximately ¥226,000.
Fixed-rate "Flat 35" loans at current rates around 3.69% provide payment certainty but higher monthly costs. The same ¥80 million loan at fixed rates would cost approximately ¥367,000 monthly, representing a significant difference of ¥141,000 per month.
Shorter loan terms reduce total interest paid but increase monthly payments substantially. A 25-year term instead of 35 years would increase monthly payments by roughly 25-30% while saving significant interest over the loan's life.
Down payment size also affects monthly costs, as larger down payments reduce the loan principal and may qualify borrowers for better interest rates. The optimal balance depends on the buyer's cash position, risk tolerance, and investment alternatives.
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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 best areas to buy an apartment if you plan to live in it, rent it out long-term, or sell it for a profit later?
| Investment Objective | Recommended Areas | Key Reasons |
|---|---|---|
| Personal Use | Shibuya, Meguro, Minato, Chiyoda, Koto | Highest convenience, amenities, lifestyle quality, stable resale value |
| Long-term Rental | Minato, Shibuya, Chuo, Kiyosumi-Shirakawa, Nakano, Sumida | High tenant demand, strong rental yields, diverse demographics |
| Resale Profit | Shinagawa, Toyosu, Koto | Fast growth, redevelopment projects, 30-40% appreciation potential |
| Balanced Strategy | Kiyosumi-Shirakawa, Nakano, emerging central areas | Value pricing with upside potential, good rental demand |
| High Yield Focus | Outer wards, suburban areas | Lower prices enable higher rental yields, though with tenant quality trade-offs |
What are the investment prospects in high-demand areas like Shinagawa and Toyosu?
Shinagawa and Toyosu represent Tokyo's most promising investment areas due to major redevelopment initiatives.
These districts benefit from massive infrastructure projects including new transportation links, office developments, and commercial centers. Shinagawa serves as a major railway hub and is experiencing significant urban renewal, while Toyosu has transformed from an industrial area into a modern residential and commercial district.
Price appreciation in these areas has outpaced Tokyo's overall market, with some properties experiencing 30-40% increases over five-year periods. This exceptional growth reflects the areas' transformation and improved accessibility to central Tokyo.
Investment fundamentals remain strong with new office developments attracting major corporations and residents seeking modern living environments. The areas offer a combination of convenient location, modern infrastructure, and continued development potential.
However, investors should consider that much of the near-term development potential may already be reflected in current prices, and future returns may normalize as the areas mature into established neighborhoods.
How does the rental market's growth impact property investment decisions?
Tokyo's rental market strength significantly supports property investment fundamentals.
Rental yields across Tokyo average 4.2%, with central studio apartments achieving 3.7% yields despite higher purchase prices. These yields compare favorably to many global markets, particularly when considering Tokyo's stability and growth potential.
Rental growth of 2-3% annually in desirable central areas helps protect against inflation and supports long-term investment returns. Vacancy rates remain low at under 3% in core areas, indicating strong underlying demand for quality rental properties.
Net migration to Tokyo continues with young professionals and high-earning residents driving demand for modern apartments. This demographic trend supports both rental income growth and property value appreciation over time.
The rental market's stability makes Tokyo attractive for international investors seeking steady income streams with modest growth potential. However, outer wards and older properties face higher vacancy risks and more limited rental growth prospects.
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What are the risks and opportunities associated with purchasing stigmatized properties (jiko bukken) in Tokyo?
Stigmatized properties, known as "jiko bukken," present high-risk, high-reward investment opportunities in Tokyo's market.
These properties typically sell at 20-80% below market value due to incidents such as unnatural deaths, suicides, or violent crimes that occurred on the premises. The steep discounts reflect the social stigma attached to such properties in Japanese culture.
Risks include permanently lower resale values, ongoing vacancy challenges, and disclosure requirements that can deter Japanese tenants and buyers. Many local residents avoid these properties due to cultural superstitions, limiting the potential tenant and buyer pool significantly.
Opportunities exist for investors targeting specific markets including international tenants, students, or price-conscious renters who are less concerned about property history. Some investors achieve higher rental yields due to the lower acquisition costs.
Legal disclosure requirements vary, with some obligations ending after initial lease cycles, potentially allowing partial value recovery over time. However, stigmatized properties require specialized knowledge, careful due diligence, and acceptance of unique market risks that make them suitable only for experienced, well-informed investors.
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 2025 offers diverse opportunities across different price points and neighborhoods, from premium central locations to emerging areas with growth potential.
Whether buying for personal use, rental income, or investment appreciation, understanding the specific dynamics of each area and total ownership costs is essential for making informed decisions in this complex but rewarding market.
Sources
- Tokyo Portfolio - Tokyo Real Estate Prices Q1 2025
- BambooRoutes - Average Tokyo Apartment Price
- BambooRoutes - How Much Apartment Japan
- BambooRoutes - How Much Apartment Tokyo
- E-Housing - How Much is a House in Japan
- Belonging Japan - Tokyo Apartment Price Guide
- BambooRoutes - Average Apartment Rent Tokyo
- Patience Realty - Greater Tokyo April 2025 Condo Prices
- BambooRoutes - Tokyo Property
- Old Houses Japan - Stigmatized Properties