Tokyo's Real Estate Surge: Shibuya Tops the Rankings in 2025
In a recent report released by TOCHU Co., Ltd., a prominent real estate agency based in Tokyo, the real estate market in Tokyo's 23 wards has shown significant price increases, especially in the one-room apartment segment. Based on sales data from 771 transactions made by TOCHU until October 2025, the average price per square meter of one-room apartments has surged, with Shibuya taking the top spot with an astounding year-on-year increase of 24.9%. Following Shibuya, Minato and Chiyoda wards recorded increases of 14.4% and 13.5%, respectively. Notably, the top five areas, including Setagaya and Taito, all exceeded a 10% growth rate, illustrating the growing demand for real estate in these urban locales.
The increase in prices is particularly remarkable in central areas like Shibuya, known for its cultural significance and vibrant atmosphere. The recent extensive redevelopment around Shibuya Station has further enhanced its appeal, attracting both potential homeowners and investors alike. The area’s strong brand identity is drawing significant amounts of investment capital, transitioning real estate into a financial product in some respects.
Setagaya ward, housing many upscale residential neighborhoods, continues to maintain its popularity owing to its proximity to central Tokyo, quality education, and comprehensive administrative services. This rise in rental prices has also contributed to its ranking among the top five areas. Additionally, Taito ward has captured attention for its charming old-town vibe and high inbound demand, thanks to districts like Asakusa and its ongoing redevelopment initiatives, securing the highest land price growth in the eastern region.
To ensure accuracy in reflecting current market conditions, TOCHU's study utilizes transaction prices from its platform, the "TOCHU iBuyer." This innovative site aggregates actual transaction data over the past two years and provides a closer estimate to real market prices using proprietary algorithms. By utilizing verified transaction prices, TOCHU aims to provide potential buyers, who typically engage in real estate transactions infrequently, with a reliable benchmark rooted in market principles.
While numerous online valuation sites often present seller-influenced prices that can stray from genuine market rates, TOCHU prioritizes real demand and the accuracy of property value to aid consumers in navigating the complex real estate landscape. By familiarizing clients with market trends and establishing a solid understanding of proper valuation, TOCHU empowers its users to make informed decisions.
In a statement regarding the current market dynamics, TOCHU's CEO, Yukihiro Ito, highlighted the influx of substantial investment capital into the condominium market, evidenced by the rising land prices in central areas. While there are genuine buyers in the market, the potential for real estate investments to become financial products is ever-increasing, with reports of popular units being flipped before formal transfer post-contract.
Looking ahead, it's anticipated that foreign investment will continue to trickle into the market beyond 2026, particularly due to the yen's depreciation, drawing foreign investors drawn by attractive residential conditions and prime tourist locales. However, new regulations proposed by the Takai administration requiring the disclosure of foreign real estate ownership are beginning to diminish inquiry rates, particularly among Chinese investors.
Reflecting back on historical precedents like the Lehman Shock, rapid changes in financial markets can lead to an excess of properties being put on the market, disrupting supply and demand dynamics. Current trends of population decline have prompted labor shortages and increased domestic cost pressures, hinting at a possible shift towards inflation sustained by import dependency.
As the financial policy tightens, a significant decline in anticipated returns could lead to a sensitive reaction from investment capital, impacting the real estate market moving forward. With this potential for volatile fluctuations in market sentiment, TOCHU highlights the importance of monitoring underlying economic indicators to navigate future real estate opportunities effectively.
If you wish to reference the data provided in this article, please credit "TOCHU Co., Ltd."
The TOCHU iBuyer platform allows users to access real transaction data freely, offering estimated property values using nuanced algorithms for accuracy. This user-friendly system requires no personal information, making real estate valuations more accessible for everyone in the urban areas of Tokyo, Kanagawa, Osaka, and Fukuoka.
TOCHU is a distinguished real estate investment agency that has been recognized as a top performer among the 500 member stores of LIXIL Real Estate Shop. With over 20,000 transactions and a satisfaction rate of 93%, it stands as a leader in the market for its expertise in investment properties.
Company Overview
Name: TOCHU Co., Ltd.
CEO: Yukihiro Ito
Address: 2-28-8 Hon Komagome, Bunkyo-ku, Tokyo, 13th Floor, Bunkyo Green Court Center Office
Website: TOCHU Official Site
YouTube Channel: Real Estate Investment Insights
Note: TOCHU's Insights
The increase in prices is particularly remarkable in central areas like Shibuya, known for its cultural significance and vibrant atmosphere. The recent extensive redevelopment around Shibuya Station has further enhanced its appeal, attracting both potential homeowners and investors alike. The area’s strong brand identity is drawing significant amounts of investment capital, transitioning real estate into a financial product in some respects.
Setagaya ward, housing many upscale residential neighborhoods, continues to maintain its popularity owing to its proximity to central Tokyo, quality education, and comprehensive administrative services. This rise in rental prices has also contributed to its ranking among the top five areas. Additionally, Taito ward has captured attention for its charming old-town vibe and high inbound demand, thanks to districts like Asakusa and its ongoing redevelopment initiatives, securing the highest land price growth in the eastern region.
Overview of the Survey
- - Objective: To analyze the average price per square meter increase of one-room apartments in Tokyo's wards.
- - Period: January 2024 to October 2025.
- - Properties: The analysis is based on 771 transactions, specifically excluding vacant properties for those over 25 years old.
To ensure accuracy in reflecting current market conditions, TOCHU's study utilizes transaction prices from its platform, the "TOCHU iBuyer." This innovative site aggregates actual transaction data over the past two years and provides a closer estimate to real market prices using proprietary algorithms. By utilizing verified transaction prices, TOCHU aims to provide potential buyers, who typically engage in real estate transactions infrequently, with a reliable benchmark rooted in market principles.
While numerous online valuation sites often present seller-influenced prices that can stray from genuine market rates, TOCHU prioritizes real demand and the accuracy of property value to aid consumers in navigating the complex real estate landscape. By familiarizing clients with market trends and establishing a solid understanding of proper valuation, TOCHU empowers its users to make informed decisions.
Insights from TOCHU's CEO
In a statement regarding the current market dynamics, TOCHU's CEO, Yukihiro Ito, highlighted the influx of substantial investment capital into the condominium market, evidenced by the rising land prices in central areas. While there are genuine buyers in the market, the potential for real estate investments to become financial products is ever-increasing, with reports of popular units being flipped before formal transfer post-contract.
Looking ahead, it's anticipated that foreign investment will continue to trickle into the market beyond 2026, particularly due to the yen's depreciation, drawing foreign investors drawn by attractive residential conditions and prime tourist locales. However, new regulations proposed by the Takai administration requiring the disclosure of foreign real estate ownership are beginning to diminish inquiry rates, particularly among Chinese investors.
Reflecting back on historical precedents like the Lehman Shock, rapid changes in financial markets can lead to an excess of properties being put on the market, disrupting supply and demand dynamics. Current trends of population decline have prompted labor shortages and increased domestic cost pressures, hinting at a possible shift towards inflation sustained by import dependency.
As the financial policy tightens, a significant decline in anticipated returns could lead to a sensitive reaction from investment capital, impacting the real estate market moving forward. With this potential for volatile fluctuations in market sentiment, TOCHU highlights the importance of monitoring underlying economic indicators to navigate future real estate opportunities effectively.
If you wish to reference the data provided in this article, please credit "TOCHU Co., Ltd."
About TOCHU iBuyer
The TOCHU iBuyer platform allows users to access real transaction data freely, offering estimated property values using nuanced algorithms for accuracy. This user-friendly system requires no personal information, making real estate valuations more accessible for everyone in the urban areas of Tokyo, Kanagawa, Osaka, and Fukuoka.
About TOCHU Co., Ltd.
TOCHU is a distinguished real estate investment agency that has been recognized as a top performer among the 500 member stores of LIXIL Real Estate Shop. With over 20,000 transactions and a satisfaction rate of 93%, it stands as a leader in the market for its expertise in investment properties.
Company Overview
Name: TOCHU Co., Ltd.
CEO: Yukihiro Ito
Address: 2-28-8 Hon Komagome, Bunkyo-ku, Tokyo, 13th Floor, Bunkyo Green Court Center Office
Website: TOCHU Official Site
Find out more on our YouTube Channel
YouTube Channel: Real Estate Investment Insights
Explore Our Official Note
Note: TOCHU's Insights
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