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As we reach mid-2025, the Tokyo residential property market continues to show strong momentum, with central areas experiencing significant price growth while outer wards offer more affordable options.
Whether you're considering Tokyo for investment or planning to relocate, understanding the current market dynamics is crucial for making an informed decision.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 in 2025 vary dramatically by location, with central wards averaging ¥871,600 per square meter (21.5% increase from last year), while premium areas like Minato and Chiyoda command ¥1,100,000-1,200,000 per square meter.
A typical 70m² apartment costs ¥77-120 million in premium central areas, ¥52-56 million in emerging neighborhoods, and ¥28-35 million in outer wards, with additional transaction costs of 6-8% and ongoing monthly management fees.
| District Type | Price per m² | 70m² Apartment Cost | Monthly Rent (1LDK) | Rental Yield | 5-Year Growth |
|---|---|---|---|---|---|
| Premium Central (Minato, Chiyoda, Chuo) | ¥1,100,000-1,200,000 | ¥77-120 million | ¥200,000-300,000 | 2-3% | +50% |
| Central Business (Shibuya, Shinjuku) | ¥1,000,000+ | ¥70-110 million | ¥180,000-250,000 | 2-3% | +40% |
| Emerging Areas (Nakano, Sumida) | ¥750,000-800,000 | ¥52-56 million | ¥130,000-180,000 | 3-4% | +30% |
| Outer Wards (Adachi, Katsushika) | ¥400,000-500,000 | ¥28-35 million | ¥60,000-80,000 | 5-6% | +10% |
| Greater Tokyo Suburbs (Saitama, Chiba) | ¥370,000-430,000 | ¥26-30 million | ¥50,000-70,000 | 6-7% | +5% |
What's the current price per square meter for Tokyo apartments?
As of June 2025, apartment prices in Tokyo vary dramatically by location, with the central 23 wards seeing existing condominiums average ¥871,600 per square meter.
In the central 23 wards, existing condominiums have experienced a remarkable 21.5% increase from last year, reflecting the strong demand for urban properties. New condominiums in these prime areas command even higher prices, ranging from ¥1,100,000 to ¥1,200,000 per square meter, driven by limited supply and premium construction standards.
The most expensive areas are ultra-prime locations like Akasaka in Minato Ward, where residential land prices exceed ¥5,900,000 per square meter, making them among the most exclusive addresses in Asia. In contrast, the Tama region offers more moderate pricing at ¥580,700 per square meter, while the Greater Tokyo suburbs provide even more affordable options - Saitama at ¥429,000 per square meter, Chiba at ¥372,600, and Kanagawa at ¥616,400.
These price variations reflect the diverse nature of Tokyo's real estate market, where accessibility to central business districts, local amenities, and neighborhood prestige play crucial roles in determining property values.
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How do prices differ between central, residential, and suburban areas?
The price gap between central Tokyo and suburban areas is substantial, with central wards commanding prices that are 2-3 times higher than outer locations.
Premium districts in areas like Roppongi and Azabu represent the pinnacle of Tokyo luxury, with land prices reaching ¥4,000,000-6,000,000 per square meter. These areas attract international executives, diplomats, and wealthy residents who value proximity to business centers and exclusive amenities. Central wards like Minato, Chiyoda, and Chuo maintain their premium status through limited supply, historical significance, and concentration of corporate headquarters.
Mid-tier residential wards such as Setagaya, Meguro, and Nakano fall in the ¥700,000-900,000 per square meter range, offering an attractive balance between urban convenience and relative affordability. These neighborhoods appeal to families and professionals seeking quality schools, parks, and community atmosphere while maintaining reasonable commute times to central Tokyo. Outer wards and suburbs like Adachi, Katsushika, and the Tama region provide the most affordable options at ¥400,000-600,000 per square meter, attracting first-time buyers and investors seeking higher rental yields.
The price differential reflects not just location but also infrastructure quality, with central areas benefiting from multiple train lines, international schools, and premium retail facilities that justify their higher valuations.
What apartment types are available and how much do they cost?
Tokyo's apartment market offers diverse options ranging from compact studios to spacious family units, each with distinct pricing structures.
Studio apartments (1R/1K) represent the entry point into Tokyo's rental market, with these compact 15-25m² units commanding ¥100,000-120,000 monthly in central Tokyo, or ¥60,000-80,000 in outer wards. 1LDK apartments, popular among singles and couples, offer 30-50m² of living space and rent for ¥150,000-230,000 monthly in central areas, dropping to ¥90,000-130,000 in outer wards.
| Apartment Type | Size Range | Central Tokyo Rent | Outer Wards Rent | Purchase Price (Central) |
|---|---|---|---|---|
| Studio (1R/1K) | 15-25m² | ¥100,000-120,000 | ¥60,000-80,000 | ¥25-30 million |
| 1LDK | 30-50m² | ¥150,000-230,000 | ¥90,000-130,000 | ¥40-60 million |
| 2LDK | 50-70m² | ¥250,000-380,000 | ¥120,000-180,000 | ¥70-100 million |
| 3-4 Bedroom | 80-150m² | ¥500,000+ | ¥300,000+ | ¥120+ million |
For purchase, a typical 70m² apartment in the 23 wards averages ¥91.4 million (approximately $653,000), with central ward properties reaching ¥120 million ($860,000) and outer ward options starting around ¥55 million ($393,000).
How have Tokyo apartment prices changed over the past year and five years?
The Tokyo residential property market has demonstrated remarkable resilience and growth, with prices showing consistent upward momentum.
Over the past 12 months (January 2024 to January 2025), the residential property price index increased by 8.14%, with central wards experiencing particularly strong growth. Used condominium prices in prime locations jumped more than 20% year-over-year, driven by limited inventory and strong demand from both domestic and international buyers. This growth rate significantly outpaced inflation and wage growth, indicating genuine market strength rather than simple monetary inflation.
The five-year perspective reveals even more dramatic changes in Tokyo's property landscape. Central Tokyo land prices have surged approximately 50% in premium areas like Minato Ward, reflecting the area's transformation into a global business hub. New condominium prices citywide rose from ¥67 million in 2015 to ¥112 million in 2024, marking a 66% increase that represents one of the strongest growth periods in Tokyo's modern history.
Used apartments have seen steadier but still significant appreciation during this period, with average prices in the 23 wards increasing by 35-40% over five years, making them an attractive option for buyers seeking value while still capturing market appreciation.
What are the price forecasts for Tokyo apartments?
Short-term projections for 2025 indicate continued price growth of 5-6% annually in central Tokyo areas, supported by ongoing urban development and international investment.
The central business districts will likely maintain this momentum due to limited supply and strong demand from both domestic and international buyers, particularly as Japan continues to attract foreign investment and talent. Major infrastructure projects, including the Linear Chuo Shinkansen and continued redevelopment of areas like Toranomon and Shibuya, provide fundamental support for price appreciation in these districts.
However, market dynamics vary significantly by location, with some outer and suburban areas potentially experiencing corrections or price flatlining. Increased supply in these locations, combined with affordability constraints and demographic shifts, are expected to moderate price growth. Long-term forecasts suggest central Tokyo will remain resilient with steady appreciation of 3-5% annually, while suburban and outer wards may see slower growth rates of 1-2% or slight declines as buyers increasingly prioritize central location convenience over space.
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What additional costs should buyers expect?
Purchasing a Tokyo apartment involves significant additional costs beyond the sale price, typically adding 6-8% to the total investment.
Upfront transaction costs represent a substantial portion of the initial investment. The agent fee alone amounts to 3% of the purchase price plus ¥60,000, with an additional 10% consumption tax applied. Stamp duty varies from ¥10,000 to ¥100,000 depending on the property price, while title transfer and registration fees total approximately 1.5% of land value plus 0.3% of building value.
| Cost Type | Amount/Rate | When Due | Example (¥50M property) |
|---|---|---|---|
| Agent Fee | 3% + ¥60,000 + 10% tax | At closing | ¥1,716,000 |
| Stamp Duty | ¥10,000-100,000 | At contract | ¥30,000 |
| Registration | ~1.8% total | At closing | ¥900,000 |
| Acquisition Tax | 3% land, 4% building | 6 months later | ¥1,750,000 |
Annual ownership costs include property taxes (fixed asset tax and city planning tax) totaling approximately 1.7% of assessed value, management fees averaging ¥14,715 monthly for a 60m² condominium, and repair reserve funds averaging ¥7,243 monthly.
What mortgage options are available in Tokyo in 2025?
The Tokyo mortgage market in 2025 offers competitive terms for qualified buyers, with interest rates remaining near historic lows.
Variable interest rates start from 0.4-0.5% for the most creditworthy borrowers, while 10-year fixed rates range from 1.1-1.7%, providing stability for medium-term planning. The government-backed Flat 35 program offers 35-year fixed rates around 1.8%, appealing to buyers seeking long-term payment certainty. These rates remain attractive despite global interest rate increases, reflecting the Bank of Japan's continued accommodative monetary policy.
Loan terms extend up to 35 years, with some lenders offering 40-year terms for younger borrowers, providing flexibility for monthly payment amounts. Down payment requirements typically range from 10-20% for residents, though non-residents may need to provide up to 30% depending on their visa status and income stability. Loan-to-value ratios vary significantly by residency status - permanent residents can borrow up to 110% of the property value (including closing costs), while non-permanent residents are limited to 70-80%.
Foreign buyers should note that mortgage approval depends heavily on Japanese income sources, length of residence, and visa type, with some banks requiring a guarantor or refusing loans to non-permanent residents entirely.
What's the true cost of owning a Tokyo apartment over time?
Understanding the total cost of ownership is crucial for budget planning and investment analysis.
For a typical ¥50 million apartment with a standard mortgage, monthly costs break down as follows: mortgage payment of ¥130,000 (assuming 1% interest over 35 years), management and reserve fees totaling ¥22,000, and property tax (annualized) of ¥10,000, bringing the total monthly cost to ¥162,000. This excludes utilities, which typically add ¥15,000-25,000 monthly, and occasional repairs or special assessments.
Over the ownership period, several factors impact total costs. Management fees tend to increase 2-3% annually as buildings age and require more maintenance. Property tax assessments are reviewed every three years and may increase with area development. Major building renovations occur every 12-15 years, potentially requiring special assessments of ¥500,000-2,000,000 per unit.
However, owners build equity through mortgage principal payments and potentially benefit from property appreciation. Historical data suggests central Tokyo properties appreciate 3-5% annually over long periods, though past performance doesn't guarantee future results. The combination of equity building and appreciation often offsets the carrying costs, making ownership financially advantageous compared to renting over 10+ year periods.
Should you buy to live in or as an investment property?
The decision between owner-occupation and investment depends on personal circumstances, financial goals, and risk tolerance.
Buying to live offers stability and control over your living environment, with central ward purchases providing the strongest appreciation potential. Owner-occupiers can justify paying premium prices for preferred locations since they directly benefit from neighborhood amenities and shorter commutes. The Tokyo residential market's stability provides peace of mind for those planning to stay 5+ years, with the added advantage of building equity rather than paying rent.
Investment properties in central Tokyo yield modest rental returns of 3-4% but offer exceptional occupancy rates exceeding 95% and tenant stability. The combination of rental income and capital appreciation can provide attractive total returns, particularly in emerging neighborhoods. Outer wards provide higher yields of 5-6% but with less capital appreciation potential, appealing to investors prioritizing cash flow over growth.
Short-term rentals can be lucrative in tourist areas, potentially doubling standard rental yields, but face strict licensing requirements and regulatory oversight. Only properties in designated areas can operate legally as minpaku (short-term rentals), and operators must navigate complex regulations including the 180-day annual limit in many wards.
Which Tokyo neighborhoods offer the best investment potential?
Investment potential varies significantly across Tokyo's diverse neighborhoods, with each area offering distinct advantages.
Premium central wards continue to attract investors seeking capital preservation and steady appreciation. Minato Ward benefits from ongoing international business expansion and diplomatic presence, while Chiyoda Ward's government district status ensures consistent demand. Chuo Ward's waterfront redevelopment projects, including the former Tsukiji market site, promise significant transformation. Shibuya Ward's emergence as a tech and startup hub attracts young professionals and international companies, supporting long-term growth.
Emerging investment areas offer higher growth potential at more accessible price points. Nakano provides an affordable alternative to neighboring Shinjuku with strong community appeal and improving infrastructure. Koenji's artist quarter undergoes steady gentrification while maintaining its creative character. Sumida's waterfront redevelopment, anchored by Tokyo Skytree, creates new residential opportunities. Nagareyama in Chiba prefecture attracts families with its "mother-friendly" city initiatives and improved transportation links.
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How do Tokyo apartment prices compare internationally?
Tokyo's property market remains competitive among major global cities, offering relative value compared to other financial centers.
| City | Average Price per m² (USD) | Price Index vs Tokyo | Rental Yield |
|---|---|---|---|
| Tokyo | $7,411 (central) / $5,439 (metro) | 100 | 3-4% |
| Seoul | $9,000-12,000 | 121-162 | 2-3% |
| Singapore | $16,000-23,000 | 216-310 | 2.5-3.5% |
| New York | $15,000-25,000 (Manhattan) | 202-337 | 3-4% |
| London | $12,000-20,000 (Zone 1) | 162-270 | 3-4% |
Tokyo apartments cost significantly less than Singapore or Manhattan properties, making them attractive for international investors seeking exposure to a major global city. The combination of lower entry prices, stable rental market, and potential yen appreciation provides a compelling investment case compared to overheated markets in other Asian financial centers.
What are actual recent purchase prices across Tokyo?
Real-world examples illustrate the diverse pricing across Tokyo's neighborhoods as of June 2025.
In ultra-luxury Minato Ward, new 70m² condominiums command ¥130-150 million, reflecting the area's status as Tokyo's most prestigious address. Premium business districts like Shibuya and Chiyoda see similar units priced at ¥100-120 million, appealing to executives and investors seeking blue-chip locations. These properties often feature international-standard amenities, concierge services, and spectacular city views.
Emerging neighborhoods offer more accessible pricing while maintaining strong growth potential. Nakano's new developments price 70m² units around ¥56 million (¥800,000/m²), attracting young professionals and families. Sumida's waterfront renaissance brings modern condominiums at ¥52.5 million (¥750,000/m²), combining affordability with improving infrastructure. In outer wards like Adachi and Katsushika, the same size units sell for ¥28-35 million (¥400,000-500,000/m²), providing entry points for first-time buyers.
These examples demonstrate Tokyo's market depth, where buyers can find suitable properties across a wide price spectrum, from affordable family homes to ultra-luxury residences, each serving different lifestyle needs and investment objectives.
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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.
The Tokyo apartment market in mid-2025 presents diverse opportunities for both investors and residents, with central areas commanding premium prices but offering strong appreciation potential.
Whether you're drawn to the prestige of Minato Ward or the affordability of outer districts, understanding current market dynamics, additional costs, and neighborhood characteristics is essential for making an informed decision in one of the world's most dynamic property markets.
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.
Sources
- Tokyo Portfolio - Japan Real Estate Market Trends
- Global Property Guide - Japan Price History
- Real Estate Tokyo - Official Land Price 2025
- INA Group - Tokyo Metropolitan Area Market Summary
- E-Housing JP - Tokyo Real Estate Market Updates
- Toshihiko Yamamoto - Tokyo Investment Insights 2025
- Japan Property - Tokyo Market Analysis
- Bamboo Routes - Tokyo Real Estate Trends
-Japan Real Estate Market Overview
-Tokyo Real Estate Market Analysis
-Osaka Real Estate Market Insights
-Kyoto Real Estate Market Guide
-Fukuoka Real Estate Market Trends
-Nagoya Real Estate Market Report
-Sapporo Real Estate Market Overview
-Hiroshima Real Estate Market Analysis