Below we give a 2021 first quarter update on the market for newly constructed apartments in Tokyo, based on February 2021 actual sales prices. For the price information on single-family homes, please see this article: How much does it cost to buy a house in Tokyo?
“Tokyo” can refer to the greater Tokyo metro area, the city of Tokyo including the western suburbs, or the 23 Wards of Tokyo.
The Greater Tokyo Area is defined as the Tokyo 23 wards plus the Tokyo western suburbs and the surrounding prefectures of Chiba, Saitama, and Kanagawa.
In addition to the 23 Wards, Tokyo includes 26 more cities (市-shi), five towns (町 -chō or machi), and eight villages (村 -son or -mura), usually referred to as the okutama region or western Tokyo. The five biggest cities in the “western suburbs” are major cities in and of themselves: Hachioji, Machida, Fuchu, Chofu, and Nishi Tokyo. Hachioji, for example, has a population of over 577,000.
Average Sales Prices
In February 2021, the average sales for a newly constructed apartment in Tokyo was:
- Greater Tokyo Area: ¥63,800,000 ($582,000)
- -2.4% YoY, +9.5% v. January 2021
- Tokyo 23 Wards: ¥74,310,000 ($678,000)
- Tokyo western suburbs: ¥57,150,000 ($522,000)
Average Sales Prices per square meter
- Greater Tokyo Area: ¥948,000 ($8,648 per sqm/$804 per sqft)
- -2.7% YoY, +8.8% v. January 2021
- Tokyo 23 Wards: ¥1,178,000 ($10,747 per sqm)
- Tokyo western suburbs: ¥827,000 ($7,545 per sqm)
Sales by price range
The table below shows the sales prices of apartments sold in the Tokyo 23 Wards in February 2021, broken down by sales price range. Sales prices in the Tokyo 23 Wards
- 71.6% of all newly constructed apartments sold in the Tokyo 23 Wards in February had sales prices of at least ¥55 million ($502,000 USD).
|Price Range in JPY||Price Range in Approx USD @ 110JPY = 1USD||Number of Units Contracted for Sale in this Price Range||% of Total|
|Under 25,000,000||Under 227,272||18||2.1%|
|Under 30,000,000||Under 272,727||19||2.2%|
|Under 33,000,000||Under 300,000||12||1.4%|
|Under 35,000,000||Under 318,181||28||3.3%|
|Under 37,000,000||Under 336,363||13||1.5%|
|Under 40,000,000||Under 363,636||39||4.6%|
|Under 43,000,000||Under 390,909||11||1.3%|
|Under 45,000,000||Under 409,090||12||1.4%|
|Under 47,000,000||Under 427,272||12||1.4%|
|Under 50,000,000||Under 454,545||30||3.5%|
|Under 55,000,000||Under 500,000||47||5.5%|
|Under 60,000,000||Under 545,454||53||6.2%|
|Under 65,000,000||Under 590,909||71||8.4%|
|Under 70,000,000||Under 636,363||66||7.8%|
|Under 80,000,000||Under 727,272||118||13.9%|
|Under 90,000,000||Under 818,181||115||13.5%|
|Under 99,999,000||Under 909,081||85||10.0%|
|More than 100,000,000||More than 909,090||91||10.7%|
|More than 200,000,000||More than 1,818,181||9||1.1%|
|More than 300,000,000||More than 2,727,272||0||0.0%|
Purchase fees and taxes
You should also factor in purchase fees and taxes to the total cost:
At the time of signing the Purchase and Sale Agreement: Down payment (in most cases 10% to 20% of purchase price), miscellaneous expenses (roughly 1.7% of purchase price)
At or by the time of closing (handover of keys): Remainder of purchase price (purchase price minus down payment), miscellaneous expenses (roughly 6-10% of purchase price)
- Agent Fees: Generally 3.24% of purchase price + 64,800JJPY (this is the upper legal limit). One half of the agent fee is usually paid at the time of signing the purchase and sale agreement, with the balance due at closing.
1-2 years after purchase: Payment of Real Estate Acquisition Tax (varies depending on the property)
For an in-depth discussion, please see this article: Purchase fees and taxes when buying a house in Japan
February 2021 data source: Real Estate Economic Institute (REEI), February 2021 New Condominium Report
Lead photo: iStock, Tokyo cityscape 955912920