Tokyo maintains a large premium over the regional average
Data based on the East Japan REINS August market release put the average contracted unit price for used condominiums in Tokyo at ¥1.1185 million per square meter, compared with ¥816,000 for Greater Tokyo as a whole. The broader metropolitan market recorded weaker transactions and a year-on-year decline in contracted unit prices, but Tokyo still commands a substantial premium over surrounding prefectures. Scarce central locations, proximity to major railway stations and newer or high-grade buildings continue to attract capital. As a result, headlines about an overall Greater Tokyo correction do not automatically describe the pricing conditions for individual Tokyo properties.
Averages conceal increasingly large differences within Tokyo
Pricing differs significantly between the central wards, outer wards and the Tama area, and changes in the mix of high-value transactions can materially affect citywide averages. Buyers should therefore avoid using a prefecture-wide price per square meter as a direct valuation for a specific unit. Recent comparable sales by station, building age, size and management quality are more relevant. Overseas buyers should also examine management fees, reserve-fund contributions, long-term repair plans and local rental demand. At higher price levels, particularly above ¥100 million, the potential buyer pool becomes narrower, so even an apparently prime asset may have very different resale liquidity depending on its exact location and specifications.
Liquidity is becoming as important as headline price
For the second half of 2026, the key Tokyo indicator is not simply how high prices remain, but how quickly properties actually sell at those prices. When inventory rises, units priced close to current market-clearing levels can behave very differently from listings anchored to earlier peak transactions. Buyers may gain greater negotiating choice, while sellers need to pay more attention to recent closings rather than record prices. Foreign and non-resident investors must additionally account for exchange-rate movements, financing availability, taxes, management expenses and eventual exit costs. Tokyo remains Japan's highest-priced residential market, but asset selection and resale liquidity are becoming more important as the broader cycle matures.