Key Facts
• In the first half of 2025, Tokyo’s new apartment prices hit record highs.
• Nearly 50% of $2 million+ properties in Tokyo’s 23 wards were bought by foreigners in 2024.
• Foreign buyers accounted for over 20% of purchases in key districts like Chiyoda, Shibuya, and Minato.
• Real estate purchases by foreign investors in Japan rose 63% in 2024, reaching $6.6 billion.
• Tokyo’s luxury property index (100) is lower than Hong Kong (263.5), London (205.2), and Shanghai (162.0).
• Japan allows permanent property ownership for foreigners, unlike China, where real estate is state-owned.
• Countries like Australia and Singapore impose restrictions or taxes on foreign property buyers.
• Japan’s real estate prices are expected to rise gradually despite potential future regulations.
Summary
Tokyo’s real estate market has seen unprecedented growth, with new apartment prices reaching record highs in 2025. Foreign buyers, particularly wealthy investors, are driving demand, purchasing nearly half of high-end properties in Tokyo’s 23 wards. Japan’s relatively affordable property prices and low barriers to foreign ownership make it an attractive market compared to cities like Hong Kong and London. However, rising prices have sparked discussions on implementing regulations, similar to those in Australia and Singapore, to curb foreign investment. While such measures could stabilize prices, experts predict a gradual increase in the near term.
