Exploring Real Estate Trends in Tokyo's Residential Areas
Tokyo, a bustling metropolis known for its unique blend of modern and traditional architecture, presents a dynamic real estate market. Areas such as Minato, Chiyoda, and Shibuya are at the forefront, displaying significant real estate activities with varying prices and trends. This report delves into the intricate details of Tokyo's real estate market, providing insights into transaction prices, median prices per square meter, and how these have evolved over the years, offering investors a comprehensive outlook on investing in Tokyo.
Ratio of population of foreigners (per 100,000 persons)
3441
Aging index
208.6
Rate of population change
0.2%
Yearly average of air temperature
16.4
Yearly average of relative humidity
70%
Yearly clear days
29
Number of elementary schools (per inhabitable area 100 km2)
93.27
Number of lower secondary schools (per inhabitable area 100 km2)
56.3
Number of upper secondary schools (per inhabitable area 100 km2)
30.15
Percentage of persons employed
96.4%
Unemployment rate (Both sexes)
3.6%
Percentage of owned houses
45%
Number of retail stores (per 1,000 persons)
6.2
Number of eating and drinking places (per 1,000 persons)
4.75
Number of department stores and general merchandise stores (per 100,000 persons)
0.84
Number of traffic accidents (per 100,000 persons)
214.9
Number of recognitions of criminal offenses (per 1,000 persons)
5.37
Amount of damage by disasters (per capita)(30 years average)
￥152
Areas in Tokyo
| Area | Median Price per m² | Growth over last 5 years |
|---|---|---|
| Minato Ward | ￥1,480,000 | 27.2% |
| Chiyoda Ward | ￥1,395,652 | 26.9% |
| Shibuya Ward | ￥1,370,329 | 26.9% |
| Chuo Ward | ￥1,252,273 | 22.6% |
| Meguro Ward | ￥1,157,894 | 20.2% |
| Shinjuku Ward | ￥1,155,000 | 15.5% |
| Bunkyo Ward | ￥1,152,941 | 23.5% |
| Shinagawa Ward | ￥1,095,455 | 17.4% |
| Toshima Ward | ￥1,050,000 | 23.5% |
| Taito Ward | ￥1,000,000 | 20.0% |
| Sumida Ward | ￥950,000 | 25.2% |
| Setagaya Ward | ￥950,000 | 22.8% |
| Koto Ward | ￥948,684 | 35.5% |
| Nakano Ward | ￥933,333 | 24.4% |
| Musashino City | ￥921,324 | 20.9% |
| Suginami Ward | ￥866,666 | 15.9% |
| Ota Ward | ￥866,666 | 21.3% |
| Kita Ward | ￥840,000 | 26.0% |
| Mitaka City | ￥777,777 | 34.3% |
| Arakawa Ward | ￥744,444 | 29.1% |
| Koganei City | ￥736,667 | 32.0% |
| Nerima Ward | ￥716,718 | 21.6% |
| Itabashi Ward | ￥712,500 | 29.5% |
| Chofu City | ￥660,769 | 23.9% |
| Kunitachi City | ￥642,105 | 24.0% |
| Kokubunji City | ￥609,523 | 27.6% |
| Komae City | ￥573,750 | 13.6% |
| Nishitokyo City | ￥554,701 | 20.2% |
| Edogawa Ward | ￥554,545 | 20.2% |
| Katsushika Ward | ￥540,000 | 24.6% |
| Fuchu City | ￥533,333 | 14.3% |
| Adachi Ward | ￥522,222 | 30.6% |
| Kodaira City | ￥520,000 | 20.0% |
| Akishima City | ￥461,579 | 42.9% |
| Inagi City | ￥459,340 | 3.9% |
| Tachikawa City | ￥444,444 | 19.2% |
| Higashikurume City | ￥437,647 | 22.5% |
| Higashimurayama City | ￥415,789 | 23.4% |
| Hino City | ￥400,000 | 5.7% |
| Machida City | ￥375,714 | 7.3% |
| Tama City | ￥360,000 | 7.2% |
| Higashiyamato City | ￥352,941 | 9.2% |
| Hachioji City | ￥342,857 | 19.6% |
| Hamura City | ￥300,000 | 11.2% |
| Fussa City | ￥271,428 | 3.8% |
| Akiruno City | ￥257,142 | 17.4% |
| Oume City | ￥231,548 | 19.6% |
Over the years, Tokyo's real estate has witnessed fluctuating transaction prices. From 2005 to 2023, apartments experienced a steady increase from ¥21,000,000 to ¥32,000,000, while detached houses saw a rise from ¥52,000,000 to ¥58,000,000. This indicates a growing market with an upward trend, highlighting potential long-term gains for investors.
Median total transaction price
Apartment vs detached house over year of transaction
The median price per square meter offers a clearer vision of market trends. From 2005 to 2023, the price for apartments saw an impressive climb from ¥550,000 to ¥960,000, whereas houses hiked from ¥480,000 to ¥557,894. This pattern underscores a consistent rise in real estate value across Tokyo, making it an appealing option for investment.
Median price per m² over construction year
Apartment vs detached house over year of transaction
The depreciation of real estate with age in Tokyo presents a nuanced picture. Newer apartments and houses command higher prices, with a sharp decline as the property ages. However, after around 30 years, prices tend to stabilize, suggesting that while newer properties might offer immediate value, older properties maintain their worth over time, offering a different kind of investment opportunity.
Median price per m² by building age
Apartment vs detached house over age of building
Analyzing the median price per square meter based on the construction year cohort reveals intriguing insights. Apartments built between 2000-2005 fetched around ¥914,285 in 2005 and saw a notable increase to ¥1,052,631 by 2023. This trend reflects the premium placed on modern standards, particularly with respect to earthquake resistance, which can influence future pricing.
Median price per m² over construction year cohort
Actual price trend of Apartment built in specific years
Similar to apartments, houses also showcased a marked price variation depending on the construction year cohort. For houses built between 2000-2005, the median price per square meter increased from ¥542,857 in 2005 to ¥494,736 in 2023. The fluctuations suggest the combined effects of general market trends and the depreciating value of older constructions, indicating the importance of construction year in investment decisions.
Median price per m² over construction year cohort
Actual price trend of House built in specific years
Investing in Tokyo's real estate market presents a lucrative opportunity, with consistent price increases across newer properties and a stable market for older constructions. As shown, the value of properties varies greatly depending on various factors, including location, construction year, and property age. While newer properties offer growth potential and modern amenities, older properties provide lasting value, making Tokyo a diverse and dynamic market for investors. Understanding these trends and market dynamics is crucial for making informed investment decisions in Tokyo's vibrant real estate landscape.