#Japan #Tokyo #Real Estate Market #LIFULL HOME'S #Tokyo Condos

Rising Prices of Used Condominiums in Tokyo

LIFULL HOME'S, a prominent real estate and housing information service provider based in Chiyoda, Tokyo, has conducted a thorough investigation into the prices of used condominiums across the 23 wards of Tokyo. This analysis comes in the wake of skyrocketing property prices and a declining supply of new condos, leading many potential buyers to consider the used market as a viable alternative.

The findings of the investigation reveal striking trends in the pricing of used condominiums when assessed by age category. For instance, the average price of used condos sized at approximately 70 square meters has surpassed the one billion yen mark for properties less than 25 years old. This trend indicates a concerning shift in the dynamics of the real estate market, as prices for even older properties have begun to breach this threshold, making it increasingly difficult for buyers in the current economic climate.

Comparing the average prices from five years ago, it is evident that prices across all categories have seen remarkable increases, with the most significant rise recorded in properties aged between 10 and 15 years, which have surged by 217.6% (an increase of 72.75 million yen). Similarly, those between 15 and 20 years old also showed a substantial increase of 212.5% (an addition of 65.75 million yen), indicating prices have more than doubled in just half a decade.

Moreover, the research indicates a declining availability of used condos aged five years or less in the market, revealing an adverse trend that has persisted since 2021. As new condominium supplies dwindle, the number of newly built, affordable properties entering the market has also diminished, further exacerbating the affordability crisis.

Chief Analyst at LIFULL HOME'S, Toshiaki Nakayama, provided insights into the situation, emphasizing that the surge in housing prices in the Tokyo area has adversely impacted the viability of used condominiums. The report highlights significant price discrepancies across varying age categories of properties. For the year 2025, the average selling prices illustrate that even used condos older than 10 years are reaching approximately 130 million yen, with those over 15 years averaging around 125 million yen, while properties aged over 20 years hover close to the one billion yen mark. It is only in properties exceeding 25 years that prices dip below this threshold, settling around 81.8 million yen, but even at this age, the prices remain exceptionally high.

This has led to a shift in buyer behavior, as many are turning to the relatively more affordable, albeit still expensive, used condominiums in hopes of evading the exorbitant new property costs. Furthermore, the phenomenon of resale practitioners, or “flippers,” has contributed to the inflated prices in the market, with properties purchased soon after construction often sold for significantly higher figures shortly thereafter. In one noteworthy case, a high-end property initially priced at 12 million yen per square meter was sold for over 30 million yen per square meter less than a year post-completion—an alarming trend that underscores the speculative nature of the current market.

In light of the recent economic conditions, opportunities remain limited for those wishing to purchase properties within the metropolitan area, whether new or used. The data illustrates that there is now an emphasis on acquiring older, well-located properties that can be extensively renovated, as this may be the only feasible pathway for buyers looking to enter the market.

Significantly, the government is expected to broaden the scope of the residential loan tax deductions to encompass smaller units and those in more affordable outlying areas, which could further shift interest towards older buildings as buyers look for more financially manageable options.

In conclusion, as the real estate landscape in Tokyo continues to evolve, it remains paramount for potential buyers to engage with market trends critically and consider a range of options to secure their dream homes. The heightened price levels, driven by both genuine demand and speculative investments, present formidable challenges that require strategic and informed decision-making.

About LIFULL HOME'S

LIFULL HOME'S aims to transparently connect individuals with their ideal living spaces, offering a comprehensive suite of property-related services to assist anyone in their journey of finding or investing in a home, facilitating a wide-reaching vision of what a fulfilling living experience should entail.