As Tokyo’s property market continues to evolve in 2025, a key question is emerging for both foreign investors and international residents:
“Should I focus on Tokyo’s central wards, or are the suburbs now a smarter bet?”
One of the central themes in the referenced video is the anticipated increase in vacant properties (akiya) over the next 10 to 20 years. To understand why, it helps to look at Japan’s demographics and family inheritance practices:
Understanding Tokyo’s Real Estate Market in 2024: High Risk, High Opportunity
The UBS Global Real Estate Bubble Index 2024 delivers a comprehensive analysis of real estate markets across the globe,
evaluating the risk of real estate bubbles
by examining key factors such as price-to-income ratios, mortgage rates, and overall economic imbalances.
The report presents a mixed global landscape, with notable regional variations, and Tokyo emerges as one of the highest-risk markets.
For foreign investors interested in Japan’s capital, understanding the dynamics at play is essential for making informed decisions.
The overall risk of housing bubbles has slightly decreased for the second year in a row,
but this reduction is not uniform across regions.
Europe has seen a decline in risk, while Asia-Pacific markets have remained relatively stable, and risks have risen in the US.
In the Japanese real estate market, “tsubo” is a common unit of measurement for area. One tsubo is approximately 3.3 square meters or 35.6 square feet.
This unit is often used when discussing property sizes and rental rates in Japan, especially in the context of commercial and retail spaces.
On July 1(2024), the National Tax Agency announced the land value(路線価）
as of January 1, showing a national average increase of 2.3%,
marking the third consecutive year of growth.
This rise, the largest in 16 years, is driven by the recovery of inbound tourism,
redevelopment projects, and increased housing demand.
The average land value increased in 29 prefectures, with the highest increases in:
Introduction
*Greater Tokyo transaction price and transaction numbers
(From NLI chart)
As a leading expert with 15 years of experience as a residential property investor and landlord in Tokyo’s real estate market,
Yamamoto Property Advisory offers unparalleled insights and tailored investment strategies
for foreign investors looking to navigate this dynamic landscape.
Our deep understanding from a landlord’s perspective enriches our advisory services,
ensuring that you receive the most informed and strategic guidance available.
The report from NLI Research Institute, a think tank of Nihon Life insurance group, dated March 22, 2024,
provides an analysis of the used condominium market in the Tokyo metropolitan area (greater Tokyo, including
Tokyo, Kanagawa, Saitama and Chiba)with a focus on the effects of financial policy changes
and market dynamics.
The used condominium market in the Tokyo metropolitan area has a significant impact on the overall real estate market in Japan
due to its large scale and influence,and because Tokyo is the center of economic activity in Japan. For this reason,
this market is considered an indicator of the entire Japanese real estate market.
Here’s a concise summary of the main points of the report.
Introduction:
Tokyo, a city that seamlessly blends the ultramodern with the traditional, stands as a beacon of opportunity in the global real estate landscape. For foreign investors looking to dive into this market, understanding its current trends is crucial. In this comprehensive guide, we’ll explore the latest developments in Tokyo’s real estate market, focusing on the used condominium sector, which offers insightful glimpses into the city’s economic heartbeat.
*Please click to enlarge the image
Investing in Japan’s Real Estate Renaissance:
Uncovering Opportunities in Tokyo and Beyond
In the ever-evolving landscape of global real estate investment,
it’s essential to keep a close eye on emerging trends and opportunities.
One such opportunity that has recently come to light is the significant growth
in real estate investment in Japan’s capital region.
The Japanese Housing Market: Is it Time to Buy?
The prices of newly built standalone homes and condominiums in Japan
have been rising steadily for the past few years,
but there is a growing concern that the market may
be reaching a turning point.
The prices of newly built standalone homes and condominiums
have been rising steadily for the past few years.
The price of used condominiums has increased by more than 70% over 10 years.
The rise in condominium prices, especially in the metropolitan area, continues.
However, there is a growing concern that the market may be reaching a turning point.
Understanding the wealth distribution across the globe
can offer invaluable insights into potential opportunities
and trends in the real estate market.
That’s why today, we’re turning our spotlight on a recent report by Henley & Partners, a British consulting firm,
which ranks cities based on their millionaire populations.
Particularly interesting for us is the position of Tokyo, Japan’s bustling capital, in this global landscape.
As we unpack these insights, we’ll consider what this means for real estate investment in Japan,
and how these trends might shape our strategies moving forward.