How Much Is a House in Tokyo? A Cost Breakdown

Tokyo, a global financial hub, attracts significant interest in its real estate market. Understanding property costs involves navigating property types, influencing factors, and additional expenses.

Property Types and General Price Ranges

Residential properties in Tokyo primarily consist of condominiums, detached houses, and undeveloped land. Each category presents distinct characteristics and price points.

Condominiums, or apartments, are the most common housing type in Tokyo, especially within the central wards. New condominiums in central Tokyo’s 23 wards averaged ¥111.8 million in 2024. In the broader Tokyo metropolitan area, including surrounding prefectures, the average was ¥78.2 million in 2024. Used condominiums in central Tokyo can also cost around ¥100 million.

Detached houses, known as ikkodate, offer more space and privacy but are generally less common in dense urban centers. The average price for a newly constructed detached house in the Tokyo metropolitan area was ¥43.3 million in 2021. In central Tokyo’s 23 wards, new detached houses range from ¥60 million to ¥120 million. Existing detached houses in Tokyo Prefecture averaged ¥68.04 million in May 2025.

Purchasing land (tochi) is another option, particularly for those looking to build a custom home. Land prices vary significantly by location, with central areas being considerably more expensive. The average price of land per square meter in central Tokyo rose to ¥1.73 million in 2023. The value of land tends to retain or increase over time, unlike buildings which depreciate.

Factors Determining Property Value

A property’s value in Tokyo is shaped by several specific attributes. These factors apply across all property types, influencing the final price.

Location is a primary driver of property value. Proximity to public transportation, commercial districts, and amenities significantly impacts cost. Properties near major train stations, business centers, and green spaces command higher prices. Central Tokyo districts like Minato, Chiyoda, Shibuya, and Chuo are particularly sought after.

Property age plays a significant role, as houses in Japan depreciate in value over time. New construction is more expensive, and a building’s value can decline quickly. This depreciation is influenced by cultural preferences for new homes and government regulations for tax calculations, which can be as short as 22 years for wooden houses and 47 years for reinforced concrete buildings.

Size and layout are direct determinants of price, with larger properties and efficient floor plans commanding higher values. Square footage, referred to as senyū menseki, and the number of rooms correlate with purchase price. Construction quality and materials also influence value; steel and reinforced concrete structures hold value better than traditional wooden structures.

Amenities, particularly for condominiums, add to a property’s appeal and price. Features like parking, balconies, security systems, and communal facilities contribute to higher valuation. Land often holds its long-term value or appreciates, while the building is a depreciating asset. For detached houses, a significant portion of value lies in the land.

Understanding Additional Purchase Costs

The advertised price of a property in Tokyo does not represent the total outlay for a buyer. Several additional costs are incurred during the acquisition process.

Real estate agent commissions are a significant expense, calculated as 3% of the property price plus ¥60,000, plus consumption tax for properties exceeding ¥4 million. This commission is paid to the real estate firm once a sales contract is concluded. For example, a ¥50 million property incurs a commission of ¥1,566,000 including consumption tax.

Registration tax (tōroku menkyozei) is levied on transferring ownership of land or buildings. The tax rate is 1.5% for land and 2.0% for buildings, applied to the assessed property tax value. Reduced rates may apply for new housing. Stamp duty (inshizei) is applied to sales contracts and varies based on the contract amount, ranging from ¥10,000 to ¥480,000.

Real estate acquisition tax (fudōsan shutokkuzei) is a one-time tax imposed when land or buildings are acquired or newly constructed. The standard rate is 3% for residential land and dwellings, and 4% for other buildings, based on the assessed value. This tax is billed several months after purchase.

Legal and judicial scrivener fees cover costs for professionals handling the registration process. Judicial scriveners (shiho-shoshi) charge between ¥40,000 to ¥200,000 for services including document preparation and ownership transfer recording. Mortgage arrangement fees may apply if a loan is secured. Property insurance is mandatory or highly recommended.

Potential renovation costs should be considered, especially for older properties. An older home might require investment to meet modern living standards or seismic safety. General renovations range from ¥3,500,000 to ¥20,000,000, with full renovations reaching ¥25,000,000.

Price Variations Across Tokyo’s Districts

Property prices in Tokyo exhibit significant variation across its 23 wards and surrounding areas, reflecting differences in prestige, convenience, and amenities. This geographical impact provides a clear context for understanding housing costs.

High-end districts in central Tokyo, such as Minato, Shibuya, Chiyoda, Chuo, and Shinjuku, command the highest prices due to prime locations, transportation, and amenities. The average price for a condominium in central Tokyo’s 23 wards was ¥116.32 million in fiscal year 2024. Properties in these areas are sought after by high-income individuals and foreign investors. For example, a 70 square meter apartment in Tokyo’s 23 wards averaged about ¥91.4 million in 2025.

Mid-range districts, including Setagaya, Suginami, Nakano, and Bunkyo, offer a balance between accessibility and residential quality. Prices are lower than central wards but still substantial. A new 3-bedroom detached house in Setagaya might cost around ¥80-90 million. These areas provide good access to central Tokyo and a more residential atmosphere.

More affordable districts are in Tokyo’s outer wards and suburban areas, offering budget-friendly housing. Areas like Adachi, Katsushika, Edogawa, and Nerima offer lower prices, making homeownership more attainable. New detached houses in an outer ward like Adachi might be in the ¥50-60 million range. While further from the city center, they provide good value and reasonable public transport access.