CONCIERIA, the property brand of CLEARTH LIFE in Tokyo

In the Tokyo metropolitan apartment market in 2025, the decline in the supply of newly built apartments is expected to become even more pronounced. On the other hand, prices, rents, and asset values in the secondary market continue to maintain an upward trend, further strengthening the pattern of “demand concentrating on limited supply.”

In particular, amid the current weaker JPY, Japanese real estate has become an increasingly attractive investment target for overseas investors. This is due not only to its appeal as a real asset with inflation resistance, but also to the growing scarcity of urban properties.

≪Newly Built Studio Apartment Market in the Tokyo Metropolitan Area≫

In recent years, the number of newly supplied units has continued to decline. This is due to factors such as the difficulty of acquiring development sites, as well as rising land prices, material costs, and labor costs. Development has become particularly challenging in central Tokyo, resulting in limited new supply.

Furthermore, there have been changes in supply areas. While supply was previously concentrated in Tokyo’s 23 wards, in recent years it has increasingly expanded into suburban areas, making properties in central Tokyo even more scarce.

In addition, stable rental demand continues in central Tokyo, and rental rates remain on a gradual upward trend. While the value of cash tends to decline in an inflationary environment, real estate — which generates rental income — is attracting renewed attention as an asset class that is relatively resilient to rising prices.

The Rise in Central Tokyo Apartment Prices Is Accelerating Further

According to Tokyo Kantei, the number of stations in the Tokyo metropolitan area where new apartment supply was confirmed in 2025 totaled 278, representing a decrease from the previous year. Considering that this figure exceeded 300 stations before the COVID-19 pandemic, it is clear that the supply area itself is shrinking.

This trend is being driven by soaring land prices and construction costs. Particularly in central Tokyo, competition for development sites has intensified, and there is a growing tendency for only projects with strong projected profitability to proceed to market.

The average price of a newly built apartment (70㎡ equivalent) in 2025 rose 13.9% year-on-year, reaching JPY 100.77 million. The highest-priced property reached JPY 458.31 million near Nogizaka Station on the Tokyo Metro Chiyoda Line. In addition, properties exceeding JPY 300 million are being listed in prime central Tokyo locations such as Kamiyacho, Omotesando, and Shirokane-Takanawa. These price increases reflect the growing recognition of the rarity and value of central Tokyo locations themselves.

Source: Tokyo Kantei "Kantei eye vol.126"

Asset Values Rising Even in the Secondary Market

This supply-and-demand environment is also clearly reflected in the secondary market.

A survey on the “resale value of 10-year-old secondhand apartments” highlights the strong performance of central Tokyo. Among 377 stations in the Tokyo metropolitan area, 8 stations recorded resale values exceeding 300%. The average resale value across the Tokyo metropolitan area also reached 160.5%.

Supported by rising stock prices, there is strong demand from wealthy individuals both in Japan and overseas. With supply remaining limited, capital continues to flow into urban properties that offer both convenience and strong prestige.

*Resale Value (%) = Resale Price ÷ Initial Sale Price × 100
Source: Tokyo Kantei / 2025 Resale Value of Secondhand Apartments (Tokyo Metropolitan Area)

What is Tokyo Kantei?

Tokyo Kantei is a real estate research company specializing in surveys and analyses of apartment data and real estate markets across Japan. The company provides a wide range of market data, including price trends, rents, and resale values for both newly built and secondhand apartments, and its data is widely used by the real estate industry, financial institutions, and media organizations.

The Weaker JPY Is Boosting Demand from Overseas Investors

The current weaker JPY environment has become a major tailwind for overseas investors acquiring Japanese properties. In particular, properties in central Tokyo remain relatively affordable compared with those in major cities around the world. Furthermore, central Tokyo offers stable rental demand and high liquidity, and properties in the area are expected to maintain and enhance their asset value over the medium to long term. With supply continuing to decline, properties in prime locations are likely to become even more scarce in the future.

However, investing in Japanese properties also presents unique challenges for overseas investors. In addition to navigating Japan’s unique systems — including laws, contractual practices, tax systems, and language barriers — there are many practical matters to manage after purchase, such as rental management, repairs, and resale procedures. In fact, it is not uncommon for the sales representative or interpreter involved at the time of purchase to have already left the company afterward, or for communication with the sales company to become difficult. This is why choosing a company that can provide reliable support even after the purchase is extremely important.

At CLEARTH LIFE Group, we provide a comprehensive system that encompasses not only apartment development and sales, but also rental management, building management, and resale support through our group companies. For overseas investors seeking to overcome Japan’s unique systems and language barriers, a reliable long-term partner is essential for stable asset management. In today’s market environment, “comprehensive capabilities, including a robust management system,” are crucial for maintaining asset value and planning future exit strategies.