#Japan #Tokyo #LIFULL #Used Apartments #Tokyo Housing

Overview of the Investigation

The real estate and housing information service, LIFULL HOME'S, which operates under LIFULL Inc., has conducted a comprehensive study concerning the changes in the sizes of used apartments in the Tokyo metropolitan region. This initiative is part of LIFULL's commitment to tackling social issues through its business operations. Given the ongoing surge in property prices, this analysis offers critical insights into the shifting dynamics of housing in the area.

Trends in Used Apartment Sizes

The investigation focuses on the average listed living space of used apartments in the Tokyo metropolitan area, which includes Tokyo, Kanagawa, Chiba, and Saitama prefectures. The results indicate a notable decline in the average size compared to five years ago. Between the years 2020 and 2025 (covering the period from January to November), the average listed size has decreased by approximately 3.69 square meters, dropping from 68.39 square meters to 64.70 square meters. Meanwhile, the average size of apartments that received inquiries has seen an even larger reduction of 6.54 square meters, down from 66.86 square meters to 60.32 square meters. This trend highlights an expanding gap between the average listed size and the size of apartments that attract potential buyers.

Average Listed Prices of Used Apartments

One key factor contributing to the diminishing sizes of used apartments is the dramatic rise in housing prices. In the same five-year span from 2020 to 2025, the average listed price of used apartments in the metropolitan area has surged by 66.7%, an increase of approximately 33.19 million yen. Year-on-year, the prices have escalated by 23.2%, marking an increase of 15.65 million yen. Interestingly, the average price for apartments based on inquiries stands at 62.14 million yen, reflecting a modest year-on-year increase of 6.7%, or 3.92 million yen.

Distribution of Apartment Sizes in 2025

Looking ahead to 2025, the distribution of used apartments by size indicates that those between 70 square meters and 80 square meters will dominate, representing 27.3% of listings. There remains a steady supply of smaller apartments aimed at single individuals and couples, specifically under 40 square meters and between 40 and 50 square meters. Should the upward trend in used apartment prices continue, it is likely that the demand from single occupants and couples will intensify.

Insights from LIFULL HOME'S

The findings were discussed by Toshiaki Nakayama, the Deputy Director and Chief Analyst at LIFULL HOME'S Research Institute. He comments that the skyrocketing prices of newly constructed apartments, which in urban Tokyo exceed 10 million yen per tsubo, are significantly influencing the cost of used apartments. For instance, the average trading price for 25-year-old used apartments in the 23 wards of Tokyo has surpassed 100 million yen (calculated for 70 square meters), while the average listing price for family-sized apartments in the same area has hit an all-time high of 100.82 million yen, up by 46.0% from the previous year.

He further elaborates that when property prices rise steeply within a short timeframe, the gap between listed and inquiry prices widens. Homebuyers have to make compromises concerning building age, proximity to transportation, and living space, as illustrated by the focus on living space in this study.

In the metropolitan area, the average inquiry size for 2025 has decreased by 6.54 square meters compared to 2020 (about two tsubos, equivalent to four tatami mats), and by 1.61 square meters year-on-year (approximately half a tsubo or one tatami mat). In contrast, the average listed space has only shrunk by 3.69 square meters (about one tsubo or two tatami mats) in the same timeframe, reflecting a clear trend of buyers leaning towards smaller properties due to rising prices. This trend exposes the pressing challenges faced by prospective buyers of used apartments.

Looking Forward

As the landscape for apartment purchasing becomes increasingly challenging, reports indicate the Ministry of Land, Infrastructure, Transport and Tourism is considering extending the existing special measures for housing loan deductions. This would lower the minimum size requirement for consideration from 50 square meters to 40 square meters, starting from 2026, which should facilitate the acquisition of houses not only in the newly built sector but also in the used housing market. Such a change is expected to spur transactions in the used apartment sector, providing a welcome boost for potential homeowners.

About LIFULL HOME'S

LIFULL HOME'S lapses the motto: "See your dreams come true!" The platform not only focuses on rentals but also on home buying, construction, and selling. Serving as a valuable resource, LIFULL HOME'S empowers individuals to discover their ideal housing solutions, broadening possibilities for new lifestyles.

To explore more about LIFULL HOME'S facilities or its service offerings, you can visit their website at LIFULL HOME'S.