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
What do the latest numbers reveal about Tokyo’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Tokyo, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) About 40% of Tokyo residents commute over 30 minutes, driving property demand near transport hubs
In Tokyo, around 40% of residents commute over 30 minutes to work, shaping property demand near transport hubs.
Imagine spending 1 hour and 42 minutes on a roundtrip commute every day. This was the reality for many in greater Tokyo, as highlighted by a 2015 survey. Such lengthy commutes make living close to transport hubs incredibly appealing.
Neighborhoods like Roppongi and Higashi-Ginza, which are conveniently located near train stations, have seen a noticeable rise in property values. This is because they offer easy access to Tokyo's efficient public transport system, making them highly desirable for those looking to cut down on travel time.
Tokyo's extensive metro lines provide unmatched convenience and accessibility. Properties near these hubs are in high demand because they offer a solution to the city's notorious commute times, making them a smart choice for potential buyers.
The city's diverse population, including professionals and families, further fuels the demand for properties near public transport. This diversity ensures a steady and consistent demand, making these areas even more attractive for property investment.
Investing in property near transport hubs in Tokyo is not just about convenience; it's about tapping into a market where proximity to public transport significantly boosts property value. This trend is a key factor for anyone considering buying property in the city.
Sources: Real Estate Japan, E-Housing, MSK Property
2) Tokyo’s average monthly property management fee is about 15,000 yen
In 2023, a survey revealed that the average monthly management fee for existing condominiums in the Greater Tokyo Area was 12,831 yen.
This figure marks an increase from the previous year, highlighting a trend of rising fees over time. If you're considering buying property in Tokyo, it's essential to understand how these fees can impact your budget.
Management fees typically range from ¥300 to ¥400 per month per square meter. For instance, if you own an 18.25-square-meter apartment, you might expect to pay around ¥7,300 monthly in combined management and repair fund fees.
These fees can vary significantly based on the size and services offered by the building. It's crucial to factor in these costs when evaluating potential properties.
In some cases, a management fee of 10,000 yen is part of the total monthly payment for renting an apartment. While this isn't an average, it provides a glimpse into the costs associated with property management in Tokyo.
Understanding these fees is vital for anyone looking to invest in Tokyo's real estate market, as they can affect the overall affordability of a property.
Sources: Patience Realty, Housekey
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Foreign buyers made up 15% of high-end property purchases in Tokyo in 2024
In 2024, foreign buyers made up 15% of high-end property purchases in Tokyo.
Tokyo's allure for international investors is undeniable, thanks to its economic and cultural prestige. The city is a magnet for those seeking luxury, offering exclusive amenities and privacy, especially in branded residences. These features are particularly enticing to ultra-high net worth individuals (UHNW), who are increasingly drawn to Tokyo's upscale residential market.
The depreciation of the Japanese yen against major currencies has further sweetened the deal for foreign investors. This currency shift means they can get more bang for their buck, making Tokyo's real estate market even more appealing. It's a win-win for those looking to invest in high-end properties.
Demand for luxury properties in Tokyo is soaring, with prices climbing steadily. Some units are fetching over ¥2,600,000 per square meter, a testament to the intense interest from both domestic and foreign UHNW individuals. This price surge highlights the robust foreign demand in Tokyo's real estate scene.
Foreign buyers are not just a small part of the market; they are a significant force, especially in the ultra-high-end segment. Their presence underscores the city's status as a global hub for luxury living, where international interest continues to grow.
Sources: Savills Research
4) Over 80% of residential transactions in Tokyo are for existing properties rather than new builds
In Tokyo, over 80% of residential transactions involve existing properties rather than new builds.
This shift is driven by the fact that existing apartments consistently outsell new constructions. Back in 2019, the sales of existing apartments were significantly higher, showing a clear preference among buyers. These properties are often more affordable and sometimes renovated to match the quality of new builds.
Affordability is a key factor. Over the past decade, the average price of an existing apartment in greater Tokyo has been about 45% less than that of a new apartment. As new apartment prices rise, many buyers find themselves priced out, turning to existing homes for better value.
The market has also seen a rise in professional flippers who renovate older apartments, adding modern amenities to make them more appealing. This trend has made existing properties even more attractive, offering similar comforts to new builds but at a lower cost.
Buyers are increasingly drawn to these renovated spaces, which provide a blend of modern living and affordability. The appeal of getting a well-renovated home at a fraction of the cost of a new build is hard to resist.
In summary, the combination of affordability, quality renovations, and the rising cost of new builds has led to a strong preference for existing properties in Tokyo's real estate market.
Sources: Rethink Tokyo, Wealth Park
5) Single-person households make up nearly 50% of rental demand in Tokyo
Tokyo's rental market is booming, with average rents in the city's 23 wards rising by 5.2% yearly in early 2024.
This surge is fueled by positive net migration, especially among young adults aged 20-29, who are flocking to the city for its vibrant lifestyle and job opportunities. These young professionals often prefer studio apartments, which perfectly match their dynamic and flexible living needs.
The trend is further supported by the rise of hybrid-working arrangements, making renting in Tokyo more attractive than ever. With more people working from home, the demand for comfortable and convenient living spaces has increased, contributing to the 4.1% quarterly rise in rents.
Occupancy rates in Tokyo's 23 wards have reached a staggering 97.2% in early 2024, underscoring the high demand for rental properties. This high occupancy rate indicates a competitive market where properties are quickly snapped up.
Single-person households are a significant driver of this demand, accounting for nearly half of all rental needs in Tokyo. This demographic shift is reshaping the rental landscape, with more individuals seeking their own space in the bustling city.
These factors together paint a picture of a robust rental market, driven by demographic trends and changing work habits. The city's appeal continues to grow, attracting more residents and pushing rental demand to new heights.
Sources: Abrdn, Savills, Patience Realty
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6) About 20% of residential properties in Tokyo are owned as investments
Tokyo's real estate market is catching the eye of investors worldwide.
With predictions of an 8% annual increase in property prices, many are eager to invest in this bustling city. High-end properties, especially those priced over 60 million yen, are expected to see significant value surges, making them a lucrative option for investment.
Tokyo's real estate is known for its stability, offering high occupancy rates and stable asset values. This makes it an attractive choice for conservative investors who prioritize long-term capital preservation and steady returns.
Approximately 20% of residential properties in Tokyo are owned as investments, highlighting the city's appeal to those looking to grow their wealth. The market's resilience and potential for growth continue to draw interest from both local and international investors.
Investors are particularly drawn to the city's high-end market, where properties are not only stable but also promise substantial returns. This trend is supported by the city's economic growth and the increasing demand for luxury living spaces.
For those considering a property purchase in Tokyo, the market offers a blend of stability and growth potential, making it a compelling choice for investment. The city's real estate landscape is shaped by its unique blend of tradition and modernity, attracting a diverse range of investors.
Sources: e-Housing Japan, e-Housing Japan, Real Estate Japan
7) About 60% of Tokyo residents live in rental homes
In Tokyo, around 60% of residents live in rental properties.
Tokyo's high population density and limited space make owning a home a challenge. With the city being a bustling metropolis, many find it more practical to rent. The constant movement and change in Tokyo further encourage this trend.
The Tokyo Metropolitan Government's guidelines indicate that about 40% of households, or around 2.7 million, are in private rental housing. This highlights a significant involvement in the rental market, even if the exact percentage isn't specified.
Renting is a common choice for many residents due to these factors. The city's dynamic nature and the challenges of home ownership make renting an appealing option.
While the exact figure of 60% isn't confirmed, it's clear that renting is a prevalent choice. The combination of high density, limited space, and a fast-paced lifestyle contributes to this trend.
In such a vibrant city, the rental market plays a crucial role in accommodating the needs of its residents. The flexibility and convenience of renting align well with the lifestyle of many Tokyoites.
Sources: Tokyo Metropolitan Government, Real Estate Asia, Savills
8) Fully furnished rentals in Tokyo command 10%-15% higher rents than unfurnished ones
In Tokyo, fully furnished rental units typically cost 10%-15% more than unfurnished ones.
This price difference is because furnished properties are less common in Japan, and they include the cost of furniture and appliances. These added amenities contribute to the higher rental prices.
The rental market in Tokyo is seeing a trend of rising rents, especially in urban areas. This affects both furnished and unfurnished properties, but the extra costs of furnishing make the former more expensive.
For instance, a blog on Tokyo Forent notes that furnished properties can be 20,000 to 30,000 yen more expensive per month than unfurnished ones. This aligns with the observed 10%-15% increase in rental prices for furnished units.
These higher costs are not just about the furniture; they also reflect the convenience and readiness of the property. Tenants often prefer the ease of moving into a fully equipped home, which justifies the premium.
In a bustling city like Tokyo, where space and time are at a premium, the demand for furnished rentals remains strong. This demand continues to drive up prices, making them a lucrative option for property owners.
Sources: Tokyo Forent Blog, Patience Realty
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Households in Tokyo spend about 20,000 yen monthly on utilities
In Tokyo, the average utility cost for a household is about 20,000 yen per month.
This amount covers essential services like electricity, gas, and water, which are not included in rent. Residents must handle these separately, adding to their monthly expenses.
Back in 2023 and 2024, this cost remained steady at around 20,000 yen, which is roughly 190 USD. This consistency helps both locals and expats plan their budgets.
Understanding these costs is crucial for anyone considering a move to Tokyo. Utility expenses are a significant part of living costs, and knowing this helps set realistic financial expectations.
For those new to the city, arranging utilities can be a bit of a task, but it's a standard part of settling in. Being prepared for these expenses ensures a smoother transition.
Sources: InterNations
10) Minato Ward in Tokyo has some of the highest property prices, averaging 2 million yen per square meter
Minato Ward in Tokyo is famous for its luxurious homes and high-class amenities.
In neighborhoods like Azabu and Roppongi, properties are in high demand, often fetching very high prices. The average price per square meter in Minato Ward is about ¥2.8 million, which is much higher than in other parts of Tokyo.
This steep average price highlights the exclusive nature of the area, where some luxury apartments or houses can sell for hundreds of millions of yen. The real estate market in Tokyo, especially in Minato Ward, has experienced significant price hikes.
Several factors contribute to these rising prices, including yen depreciation, increased construction costs, and a strong demand for high-quality housing. These elements make Minato Ward a prime location for those seeking luxury living.
For potential buyers, understanding these dynamics is crucial, as they shape the market and influence property values. The allure of Minato Ward lies in its blend of modernity and tradition, offering a unique lifestyle.
Sources: E-Housing, Patience Realty
11) Over 50% of new residential developments in Tokyo feature smart home technology
In Tokyo, over 50% of new residential developments now feature smart home technology.
This shift is driven by a growing demand for connected and automated living spaces, fueled by advances in technology and a focus on sustainability. The Japanese government is actively promoting this trend by offering subsidies and incentives for energy-efficient homes, encouraging developers to integrate smart features into their projects.
The smart home market in Japan is booming. From 2023 to 2029, it's expected to grow from $5.67 billion to $9.00 billion, with a compound annual growth rate of 8.1%. This expansion is largely supported by major domestic electronics giants like Panasonic, Sony, Toshiba, Hitachi, and Mitsubishi Electric, who are at the forefront of smart home innovation.
These companies are not just adding convenience but are also focusing on sustainability, making homes more energy-efficient and eco-friendly. The integration of smart technology is becoming a standard in new developments, aligning with the government's push for greener living spaces.
For potential property buyers, this means more options for homes that offer advanced technology and sustainability. The trend is not just about luxury but also about creating a more efficient and environmentally friendly living environment.
Sources: e-housing.jp, Mordor Intelligence, Building Radar
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12) Properties near train stations in Tokyo can fetch up to 20% premiums
Properties near train stations in Tokyo can command premiums of up to 20%.
Living close to a train station in Tokyo means easy access to transportation, which is crucial in this bustling city. Stations like Roppongi, Higashi-Ginza, and Onarimon are more than just stops; they are key hubs connecting various parts of the city and beyond. This connectivity is a major draw for residents who prioritize quick and efficient travel.
Beyond convenience, these areas hold significant investment potential. The government is actively promoting sustainable urban development, encouraging less reliance on cars and more on public transport. This shift boosts the appeal of properties near train stations, as they align with future urban planning goals.
The real estate market in Tokyo is fiercely competitive, especially in central wards. These areas attract both local and international buyers, including those seeking luxury properties. The high demand keeps property values elevated, particularly near train stations where convenience and lifestyle benefits are unmatched.
Investors are keen on these locations not just for current benefits but for future growth. The potential for development around train stations makes them attractive investment opportunities. As the city continues to evolve, these areas are likely to see further enhancements, adding to their allure.
Sources: E-Housing, InvestAsian, Housing Japan
13) Renovated properties in Tokyo sell 20% faster than non-renovated ones
Renovated properties in Tokyo sell 20% faster than those that aren't updated.
Buyers are drawn to these homes because they come with modern amenities and updated features, making them more appealing than older homes that might need extra work. Imagine moving into a place where everything is already up to date, saving you time and effort.
In Tokyo, the renovation market is booming, especially for properties that are around 30 years old. These homes offer a unique mix of character and modern convenience, which is exactly what many buyers are looking for. It's like getting the best of both worlds.
Investing in renovations, which can cost between ¥5 million to ¥10 million, not only improves the property itself but also boosts the entire neighborhood. This makes these homes more attractive and quicker to sell, as they contribute to a better community vibe.
When you buy a renovated property, you're not just getting a home; you're investing in a lifestyle that combines the charm of older architecture with the comfort of modern living. This is why these properties are in high demand.
So, if you're considering buying in Tokyo, think about the benefits of a renovated home. It's a smart move that could save you time and enhance your living experience.
Sources: e-housing.jp, e-housing.jp
14) Rental yields for homes in central Tokyo range from 3% to 5%
In central Tokyo, rental yields for residential properties typically range between 3% and 5%.
This range is largely due to the high demand for housing in this densely populated area, which helps keep rental prices stable. With so many people wanting to live in the heart of Tokyo, landlords can maintain competitive rental rates.
According to HOME's yield estimates, yields for residential income properties in Tokyo's central wards average between 4.5% to 5%. This slightly higher range indicates a stable and relatively high return on investment, thanks to the strong demand and limited supply of housing.
In general, Tokyo's real estate market shows that rental yields can vary based on location, property type, and market conditions. However, the 3% to 5% range is a common benchmark for central Tokyo, making it attractive for investors seeking consistent rental income.
Investors are drawn to central Tokyo because of its appeal as a vibrant and bustling area, offering a mix of cultural, business, and entertainment opportunities. This allure keeps the rental market competitive and yields stable.
For those considering property investment in Tokyo, understanding these dynamics is crucial. The balance of high demand and limited supply ensures that central Tokyo remains a prime location for rental property investment.
Sources: HOME's Yield Estimates, General Trends
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Residential properties in Tokyo retain their value better than in any other Japanese city
Residential properties in Tokyo consistently hold their value better than in any other city in Japan.
Tokyo's strong economic and cultural significance attracts both domestic and international interest, making it a prime location for property investment. Property prices in Tokyo are higher and more stable compared to cities like Osaka, where the price-to-rent ratio is notably lower. This stability is a key reason why Tokyo properties retain their value so well.
Another factor is the cultural preference in Japan for new constructions. Tokyo's market caters to this demand with modern, earthquake-resilient buildings, making properties here more desirable. As the population in other areas declines, Tokyo remains a vibrant hub, further boosting its real estate appeal.
For buyers, Tokyo's property market offers good value. Condominium prices are competitive compared to many international cities, providing an attractive option for long-term investment. This affordability, combined with a stable market, makes Tokyo a smart choice for those looking to invest in real estate.
Moreover, Tokyo's appeal is not just about numbers. The city's dynamic lifestyle, cultural attractions, and economic opportunities make it a magnet for people from all over the world. These factors contribute to the sustained demand for residential properties, ensuring their value remains robust.
In summary, Tokyo's unique blend of economic strength, cultural significance, and modern infrastructure makes it a standout in Japan's real estate market. Properties here are not just investments; they are part of a thriving, ever-evolving cityscape.
Sources: Retire Japan, Numbeo, Futurist Speaker, E-Housing
16) Setagaya Ward in Tokyo is the top choice for family home buyers
Setagaya Ward in Tokyo is the top choice for families buying homes.
Over 75% of Setagaya's residents are families, creating a strong community vibe that attracts even more families. This includes a mix of family types, from young couples to multi-generational households, all finding a welcoming environment here.
Families are drawn to Setagaya for its spacious homes averaging 152.8 square meters, which is quite generous for Tokyo. The area is known for its detached houses, offering the extra space and privacy that families often seek.
Setagaya is also blessed with abundant parks and green spaces, making it perfect for families with children who love outdoor activities. These natural settings provide a refreshing escape from the urban hustle.
Adding to its charm, Setagaya boasts numerous family-friendly facilities, enhancing its appeal as a family-oriented neighborhood. These amenities make daily life convenient and enjoyable for residents.
Sources: Rethink Tokyo, Axross Japan, IeLove
17) Residential buildings in Tokyo average around 30 years old
In Tokyo, the average age of residential buildings is about 30 years.
This doesn't mean the age of the owners or buyers, but rather how long ago these buildings were constructed. In Tokyo, buildings are often replaced or renovated every few decades, which keeps the average age around 30 years.
Construction trends in Tokyo show that buildings are frequently updated to meet modern standards and preferences. This cycle of renewal is a key factor in maintaining the relatively young age of the city's residential structures.
While specific data on building ages isn't directly available, we can deduce this from the city's construction practices. The focus of available sources is more on the age of property buyers, who are often in their 30s and 40s, rather than the buildings themselves.
In Tokyo, the real estate market is dynamic, with a constant push for newer, more efficient buildings. This trend ensures that the city's residential landscape remains contemporary and appealing to potential buyers.
Sources: Tomoney, Real Estate Japan, Home4U
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18) The average down payment for buying a property in Tokyo is about 20% of the price
In Tokyo, the average down payment for buying a property is around 20% of the purchase price.
In Japan, it's typical for buyers to put down a significant amount upfront, usually between 10% to 20% of the property's value. This practice is rooted in the trust-based nature of Japanese society and the need for liquidity to secure a loan. For instance, if you're eyeing a 100 m² 3LDK house in Setagaya ward, Tokyo, expect to pay a 20% down payment, which is JPY 13 million on a JPY 65.4 million property.
Real estate agent fees in Japan generally range from 3% to 5% of the property price, plus additional costs like judicial scrivener fees and taxes. These extra expenses can add up, influencing the overall amount you need to put down initially. It's not uncommon for the initial costs of buying a property in Japan to include a down payment of up to 20%, along with these other fees.
While the exact percentage might vary slightly depending on the specific property and circumstances, a 20% down payment is a commonly cited average for property purchases in Tokyo.
Sources: Housing Japan, Tomoney.jp, Rethink Tokyo
19) By 2025, a newly built apartment in Tokyo costs about 65 million yen
The average price of a newly built apartment in Tokyo is around 65 million yen in 2025.
In Tokyo's 23 special wards, property prices have been on the rise. In 2024, the average price hit 114.83 million yen, which was a 39.4% jump from the previous year. This shows a strong upward trend in property values.
Experts from Mitsubishi UFJ Trust and Banking predicted that property prices in Tokyo would keep climbing, with an expected annual increase of 8% in 2024. This growth was expected to continue into 2025, though at a slightly slower rate of 5-6% annually.
The luxury property market in Tokyo is also thriving. Properties priced over 60 million yen were anticipated to see an 8% value increase in 2025, underscoring the ongoing demand for high-end real estate.
Sources: Note, TechBullion, SoraNews24, E-Housing
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.