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Resale Properties: A Response to Rising Tokyo Real Estate Prices

As Tokyo's real estate market faces unprecedented price hikes, many prospective buyers are encountering significant barriers when trying to purchase new or old homes. In light of this trend, resale properties, particularly those refurbished by professional real estate companies, have emerged as a viable solution for many seeking affordable and modern housing options. LIFULL, a leading company in real estate and housing information services, has conducted an analysis of the market trends related to resale properties across Tokyo's metropolitan area. This article delves into the details of these trends, focusing on properties that are over 31 years old and examining their price listing and availability between January 2019 and April 2025.

Surging Demand for Resale Properties

Recent data reveals that more than 40% of listings for pre-owned apartments in Tokyo's metropolitan area fall under the category of resale properties. This is a significant increase from just 28.1% in January 2019. In contrast, the national average has seen only minimal growth, indicating a growing discrepancy between these urban markets and other areas. Interestingly, Kanagawa and Saitama prefectures have even higher percentages, showcasing a broader trend towards revitalizing older properties in response to skyrocketing prices.

In Kanagawa, for instance, as of April 2025, over 54% of its listings consist of resale properties. This reflects a robust demand among buyers looking for homes that not only meet their preferences for quality but also come at a more accessible price point compared to new builds.

Significant Price Differences

One of the notable aspects of resale properties is their price advantage. The average listing price for resale apartments over 31 years old in Tokyo's 23 wards is approximately ¥52.31 million. In contrast, newly built apartments average ¥90 million, making resale options more competitively priced by nearly ¥37 million. Given that these resale properties are often updated and renovated, they are typically in pristine condition, offering aesthetics and quality akin to that of newly constructed homes without the elevated costs. This makes them an attractive choice for buyers eager to move in quickly.

LIFULL's data highlights that despite general market trends, the average price for older apartments being sold through regular listings is even lower, at around ¥47.35 million. However, potential buyers need to consider that these properties may require considerable renovation costs that could range from ¥3 million to ¥10 million before making them livable.

Navigating the Real Estate Landscape

As buyers weigh their options, the resale property market presents a balanced choice for those looking for comfort without overspending. For example, many real estate firms operate without brokerage fees when selling these homes directly, further helping to lower overall expenditure for the buyer. Moreover, inspections before purchasing are crucial to ensure the property’s condition is satisfactory, especially in an industry where transparency is key.

Notably, the increasing interest in resale properties signifies a shift in consumer sentiments in the housing market, where buyers now prioritize not only immediate needs but long-term value and sustainability in their investments.

Future Outlook

Experts believe that the trend toward resale properties will continue to grow as the price of new homes remains high. LIFULL's Chief Analyst, Toshiyuki Nakayama, emphasizes that the ongoing digitization and development of environmentally friendly construction practices provide a compelling case for the resurgence of the resale market. By revamping older apartments and enhancing their energy efficiency, companies can not only cater to changing buyer preferences but also contribute positively to the environment.

As of 2025, new regulations aim to enforce better energy performance in refurbished homes. While this may increase costs, it will also likely enhance the attractiveness of these properties to forward-thinking buyers. In summary, for those on the hunt for a home in Tokyo, exploring the resale option may prove both economically feasible and practically advantageous in navigating today’s challenging real estate landscape.

For more insights and the latest trends in the housing market, visit LIFULL HOME'S.