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Tokyo property prices in September 2025 range from ¥15 million for outer ward studios to over ¥230 million for central detached houses.
(Central condos cost ¥1.1-1.5 million per square meter while outer areas offer value at ¥400,000-500,000 per square meter. New builds command premiums with the 23 wards averaging ¥116.3 million compared to ¥44.5 million for used condos.)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's property market offers studios from ¥15-30 million, 1LDKs at ¥25-60 million, and 2LDKs costing ¥40-100 million depending on location.
Central wards like Minato and Chiyoda command premium prices exceeding ¥2 million per square meter, while outer wards provide entry points at ¥400,000-500,000 per square meter.
| Property Type | Central Wards Price Range | Outer Wards Price Range | Price per sqm (Central) | Price per sqm (Outer) |
|---|---|---|---|---|
| Studio (15-25 m²) | ¥25-30 million | ¥15-20 million | ¥1.1-1.5 million | ¥400,000-500,000 |
| 1LDK (30-50 m²) | ¥40-60 million | ¥25-35 million | ¥1.1-1.5 million | ¥400,000-500,000 |
| 2LDK (50-70 m²) | ¥70-100 million | ¥40-60 million | ¥1.1-1.5 million | ¥400,000-500,000 |
| Detached House | ¥200+ million | ¥120-180 million | ¥1.5-2 million | ¥600,000-800,000 |
| New-build (23 wards avg) | ¥116.3 million | ¥28-35 million | ¥1.2-1.6 million | ¥450,000-550,000 |
| Used Condo (23 wards avg) | ¥44.5 million | ¥25-35 million | ¥1.1-1.5 million | ¥400,000-500,000 |
What property types should you consider in Tokyo and should you buy new or used?
Tokyo offers four main property types with distinct pricing structures as of September 2025.
Studios (15-25 m²) cost ¥25-30 million in central wards like Minato and Chiyoda, dropping to ¥15-20 million in outer areas like Adachi and Katsushika. These compact units typically target single professionals and investors seeking rental income.
1LDK condos (30-50 m²) range from ¥40-60 million in central locations to ¥25-35 million in emerging wards. 2LDK units (50-70 m²) command ¥70-100 million centrally and ¥40-60 million in outer rings, appealing to couples and small families.
Detached houses within the 23 wards average ¥200 million or more, with family-oriented layouts experiencing significant growth as condo prices surge. Land plots remain scarce centrally, with buildable sites commanding substantial premiums.
New-build condos in the 23 wards average ¥116.3 million compared to ¥44.5 million for used properties, representing a significant premium for modern amenities and warranties.
Which Tokyo neighborhoods fit your budget and lifestyle needs?
Tokyo's ward system creates distinct pricing tiers based on prestige, accessibility, and development status.
The most expensive wards include Minato, Chiyoda, Shibuya, Chuo, and Setagaya, where properties often exceed ¥150 million and cost over ¥2 million per square meter. These central CBD and top-tier residential areas offer premium locations with excellent transit access.
Up-and-coming wards like Itabashi, Ota, Sumida, and Koto benefit from infrastructure projects, improving transit connections, and creative hubs. These areas provide growth potential while maintaining reasonable entry prices.
Budget-friendly options concentrate in Adachi, Katsushika, and Edogawa, offering the lowest entry points at ¥400,000-500,000 per square meter for both condos and detached homes. Commute times to central Tokyo typically range from 30-45 minutes.
Your lifestyle priorities should drive location choice - central wards suit those valuing walkability and prestige, while outer rings appeal to budget-conscious buyers seeking long-term capital growth.
What size, layout, and building specifications should you target?
Property specifications significantly impact pricing and rental potential in Tokyo's market.
Studios typically measure 15-25 square meters, 1LDKs span 30-50 square meters, and 2LDKs occupy 50-70 square meters. The Japanese LDK system (Living, Dining, Kitchen) helps standardize layouts - a 2LDK includes two separate rooms plus the main living area.
Building age affects both purchase price and financing options. Properties under 20 years old qualify for the most favorable mortgage terms, while buildings over 30 years may require cash purchases or higher down payments.
Station proximity remains crucial - properties within an 8-minute walk command premiums but offer better resale value and rental demand. Walking times beyond 10 minutes typically reduce prices by 10-15% but may limit tenant appeal.
For investment purposes, newer buildings (under 15 years) in central locations provide the best combination of financing access, tenant demand, and long-term appreciation potential.
What's your total budget including all transaction costs?
| Cost Component | Percentage of Purchase Price | Typical Amount (¥30M property) |
|---|---|---|
| Purchase Price | Base amount | ¥30,000,000 |
| Broker Fee | 3-3.3% + consumption tax | ¥1,089,000 |
| Registration Costs | ~2% | ¥600,000 |
| Stamp Duty & Acquisition Tax | 0.4-0.7% | ¥165,000 |
| Renovation/Furnishing | 2-3% | ¥800,000 |
| Contingency Buffer | 5-10% | ¥1,500,000 |
| Total All-in Cost | 113-119% | ¥34,154,000 |
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What mortgage options are available and what are the monthly payments?
Tokyo property financing offers several pathways for qualified buyers as of September 2025.
Domestic banks provide 70-90% loan-to-value ratios for qualifying foreigners with stable Japanese income or significant assets. Variable interest rates range from 0.6-1.1%, while fixed rates span 1.3-1.9% depending on the lender and borrower profile.
Loan terms extend up to 35 years, though most borrowers choose 25-30 year periods to balance monthly payments with total interest costs. Foreign buyers typically need permanent resident status or work visas with substantial income documentation.
For a ¥40 million loan over 25 years at a stress-tested 2% interest rate, monthly payments approximate ¥170,000. This calculation helps buyers understand affordability under potentially higher future rates.
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What are current price ranges by area with specific transaction examples?
| Property Type & Location | Size (sqm) | Recent Sale Price (¥ million) | Price per sqm (¥) |
|---|---|---|---|
| Studio, Chiyoda Ward | 25 | 29 | 1,160,000 |
| 2LDK, Minato Ward | 65 | 98 | 1,507,692 |
| Detached House, Setagaya | 120 | 230 | 1,916,667 |
| Studio, Adachi Ward | 22 | 17 | 772,727 |
| 1LDK, Sumida Ward | 45 | 38 | 844,444 |
| 2LDK, Koto Ward | 58 | 52 | 896,552 |
| Detached House, Ota Ward | 95 | 145 | 1,526,316 |
Which wards are most expensive, emerging, or budget-friendly right now?
Tokyo's 23 wards divide into clear pricing categories based on location, prestige, and development momentum.
The most expensive wards include Minato (¥2.1 million/sqm average), Chiyoda (¥1.9 million/sqm), Shibuya (¥1.8 million/sqm), Chuo (¥1.7 million/sqm), and Setagaya (¥1.4 million/sqm for detached houses). These areas combine central locations with established prestige and excellent infrastructure.
Up-and-coming wards show strong demand drivers and price appreciation potential. Itabashi benefits from new rail connections, Ota features Tokyo's international gateway expansion, Sumida attracts creative industries, and Koto develops waterfront areas with modern housing complexes.
Budget-friendly wards offer value entry points: Adachi (¥450,000/sqm average), Katsushika (¥480,000/sqm), and Edogawa (¥520,000/sqm) provide affordable options with decent transport links to central Tokyo.
These emerging and budget areas typically show 7-10% annual price growth compared to 5-7% in established premium wards, making them attractive for capital appreciation strategies.
What are the annual costs of owning property in Tokyo?
Tokyo property ownership involves several recurring expenses that vary by property type and location.
Annual property tax ranges from 0.4% to 1.7% of assessed value, typically lower than market value. A ¥50 million condo might incur ¥200,000-400,000 in annual property taxes depending on the ward.
Condominium management fees cost ¥200-350 per square meter monthly. A 50-square-meter unit pays ¥120,000-210,000 annually for building maintenance, security, and common area upkeep.
Repair reserve funds require ¥10,000-25,000 monthly contributions for major building renovations and equipment replacement. Insurance and routine maintenance add ¥50,000-150,000 annually.
Major capital expenditure occurs approximately every 10 years, averaging ¥500,000 for condos and potentially millions for detached houses requiring roof, plumbing, or structural work.
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What's the best strategy for living in, renting out, or flipping Tokyo property?
Your intended use determines optimal property selection and financial outcomes in Tokyo's market.
Owner-occupiers should prioritize central 1LDK/2LDK condos or detached houses within 8 minutes' walk of major stations. Lifestyle convenience and resale value matter more than immediate rental yields for personal residence.
Long-term rental investors find better yields in outer and up-and-coming wards, typically achieving 3-5% gross returns. Studios in budget locations sometimes exceed 5% yields due to strong demand from young professionals and students.
Short-term rental operators face strict minpaku regulations limiting operations to permitted zones, mainly in Koto, Sumida, and select outer wards. Legal compliance requires careful location selection and proper licensing.
Property flippers should target new-build 2LDK units or small detached houses in emerging transit-oriented areas for short-cycle appreciation. These properties benefit most from infrastructure improvements and demographic shifts.
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How have Tokyo property prices and rents changed recently?
Tokyo property values experienced significant movements over the past 12 months and five years, driven by monetary policy and demographic trends.
Over the past 12 months ending September 2025, central condo prices increased 21.5% while used properties surged 28.3%. However, new-build segments saw a 7% correction in spring 2025 due to oversupply concerns and interest rate speculation.
Outer ward properties showed more modest 7-10% annual gains, reflecting buyer migration toward affordability. Rental rates increased 8-12% across all segments as tourism recovery and foreign worker influx boosted demand.
The five-year trend shows dramatic appreciation: overall property prices grew 37-45% with family-oriented housing leading gains. Detached houses in the 23 wards particularly benefited as condo prices pushed buyers toward larger formats.
Policy shifts driving these moves include Bank of Japan's ultra-low interest rates, government immigration reforms attracting foreign workers, and Olympic infrastructure legacy effects continuing to boost certain areas.
What are the price and rent forecasts for Tokyo property over 1, 5, and 10 years?
Tokyo property market projections reflect demographic realities, policy trajectories, and global economic factors through 2035.
Base-case forecasts predict 5-7% annual growth for prime segments through 2026, moderating to 3-5% from 2027-2030 as interest rates normalize. Outer areas may experience stagnation or mild 1-3% annual increases as supply catches up.
Upside scenarios include continued foreign buyer demand, yen weakness making properties attractive to international investors, and accelerated urban redevelopment projects. These factors could push annual growth to 8-10% in select areas.
Downside risks include Japan's aging population reducing long-term demand, stricter mortgage rules limiting buyer access, and external economic shocks disrupting investment flows. Price declines of 10-15% remain possible in oversupplied segments.
Key leading indicators to monitor include supply pipeline data, Bank of Japan policy signals, population flow statistics, foreign buyer inquiry volumes, and infrastructure spending announcements for timing market entry and exit decisions.
How do Tokyo prices compare with other major Asian cities?
| City | Average Price per sqm (USD) | Gross Rental Yield (%) | Market Notes |
|---|---|---|---|
| Tokyo | $8,500-11,200 | 3-5 | Liquid market, moderate yields |
| Hong Kong | $15,000-25,000 | 1.7-2.5 | Highest prices, strict foreign buyer rules |
| Singapore | $11,000-14,000 | 2.5-3.5 | Foreigners face additional stamp duties |
| Taipei | $13,000-16,000 | 1.8-2.5 | Very expensive, yields below Tokyo |
| Seoul | $9,700-12,500 | 2.5-4 | Tight foreign lending, high taxes |
| Osaka | $5,000-7,200 | 4-6 | Better value than Tokyo, less global activity |
| Yokohama | $5,500-7,800 | 3-5 | Tokyo satellite, similar return patterns |
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 September 2025 offers diverse opportunities from ¥15 million studios to ¥230 million detached houses, with central wards commanding premiums and outer areas providing value entry points.
Success requires matching property type, location, and strategy to your budget and goals, whether seeking personal residence, rental income, or capital appreciation in Asia's most liquid real estate market.
It's something we develop in our Japan property pack.
Sources
- Japan Property - Tokyo Market Analysis 2025
- BambooRoutes - Average Tokyo Apartment Prices
- BambooRoutes - Tokyo Apartment Price Analysis
- Reddit JapanFinance - Tokyo Detached House Prices
- INA Group - Tokyo Investment Guide 2025
- Tokyo Portfolio - Q1 2025 Market Trends
- Real Estate Tokyo - 2025 Market Predictions
- ZIGExN - Tokyo Property Market Data