#Japan #Tokyo #TOCHU #Tokyo Real Estate #Zone West

Analysis of Tokyo’s Real Estate Market: Zone West Dominates

In a recent report published by TOCHU, a real estate company based in Bunkyo, Tokyo, the investment landscape for residential properties in urban areas such as Tokyo, Kanagawa, Osaka, and Fukuoka has been carefully analyzed. From January 2024 to October 2025, TOCHU reviewed 1,871 actual transaction prices for investment apartments in the Tokyo city area, revealing valuable insights about the current state of the real estate market.

The term "actual" is emphasized because many publicly available reports on investment property prices do not always reflect the real transaction prices. TOCHU categorized the Tokyo area into several districts including Central (Chiyoda, Minato, Chuo), East (Koto, Sumida, Taito, Arakawa, Adachi, Katsushika, Edogawa), West (Shibuya, Shinjuku, Setagaya, Nakano, Suginami, Nerima), South (Shinagawa, Meguro, Ota), and North (Bunkyo, Toshima, Itabashi, Kita, Arakawa, Adachi).

Summary of the Tokyo Real Estate Market as of October 2025

According to TOCHU's findings, both the nominal yield (which doesn't take into account expenses like taxes and management fees) and the effective yield were the highest in the Zone West area. As prices surged in the central districts, investment efficiency declined, compelling many potential buyers to seek out the more affordable and livable properties available in Zone West area after a resurgence in demand post-COVID.

When comparing data from October 2025 with that of 2024, yields have worsened across all areas. This trend signals that although property prices are on the rise, residents' incomes have not kept pace, preventing property owners from raising rent and consequently lowering yields.

Research Overview

• - Purpose: To analyze actual transaction trends for investment apartments in the Tokyo metropolitan area.
• - Period: January 2024 - October 31, 2025.
• - Properties Analyzed: Excluding properties older than 25 years, 1,871 transactions were considered.
• - Methodology: Data was compiled based on the sales prices recorded by TOCHU (1)(2).
• - Conducted by: TOCHU

The focus on the last two years was to isolate aggressive price increases in Tokyo’s real estate market, allowing for more accurate analysis by eliminating outdated transaction data. Properties constructed before the new seismic standards instituted in 1981 were also excluded due to significant price drops that do not reflect current market conditions.

Commitment to Transparency in Real Estate Pricing

TOCHU's commitment to disclosing actual transaction prices addresses the discrepancies in property pricing often found in surveys. For example, research firms may gather "aspirational" prices from real estate listing websites, while real estate agents might select only convenient prices for their own benefit. TOCHU seeks to eliminate such biases, offering a true reflection of market conditions by publishing only the prices of properties that were genuinely bought and sold.

Additionally, TOCHU's website, "TOCHU iBuyer", is designed to provide easy access to real transaction prices without the need for personal information. It offers a clear contrast to other sites where prices often stem from sellers' expectations rather than actual market conditions.

Insights from TOCHU CEO Yuki Ito

Yuki Ito, the CEO of TOCHU, commented that the COVID-19 pandemic led to a notable drop in average prices within the Zone West area, creating appealing opportunities for buyers. This area has regained interest due to improved living environments and a larger selection of properties that fit consumer incomes compared to other regions, which contributed to its strong performance.

Looking ahead, TOCHU anticipates that factors like enhanced foreign investment and rising consumer prices could lead to increased property acquisition costs, which might outpace rising rents. Hence, investors may need to shift focus from yield-driven real estate investment strategies to strategies aimed at capital gain as property prices increase. Drawing attention to market conditions by area will become increasingly important for investors.

In conclusion, TOCHU’s initiative to publicly disclose real transaction prices is aimed at ensuring transparency in real estate operations, fighting against practices that lead to customer regret and mistrust. This commitment to foster a fairer market environment echoes the company’s founding principles.

TOCHU's focus on providing realistic transaction data empowers investors with the knowledge needed to make informed decisions in a fluctuating market landscape. Their innovative platform "TOCHU iBuyer" currently showcases around 5,000 real transaction records, making it a pivotal resource for both buyers and sellers in the Tokyo, Kanagawa, Osaka, and Fukuoka areas.

About TOCHU

Founded by Yuki Ito, TOCHU operates with a profound commitment to integrity and client satisfaction, achieving a record of over 20,000 transactions and a 93% owner satisfaction rate, positioning itself as a leading player in the real estate investment market. Find more about their services at TOCHU.