Tokyo real estate market — prices, rental yield and trend
- Average price: $11,800 / m²
- Gross rental yield: 3.4%
- 12-month price change (USD): 2.3%
- Net rental yield: 3.17%
- Transaction cost: 10.9%
- Bubble-risk band: elevated
- Price basis: local-market average
Residential property in Tokyo averages $11,800 per square metre. In dollar terms the market has barely moved over the last twelve months (+2.3%). That makes it the 2nd most expensive of the 83 markets in the set. In local currency the same twelve months read +9.3%; the 7-point gap is the exchange rate, not the housing market.
What a buyer pays in Tokyo
The $11,800 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 10.9% of the price here. On a 100 m² apartment at the average price that is roughly $128,623 on top of the $1,180,030 purchase price. That is close to the 10.2% median across the set. Against the Japan national average of $3,307, Tokyo carries a 256.8% premium — the gap between this market and the country as a whole.
What it earns
A square metre lets for about $33.5 a month. Against a purchase price of $11,800 per square metre that is 3.4% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 83rd of 88 markets by gross yield. Rental income is taxed at 2.8–20.4% — the rate is not a single number here. That is the difference between 2.7% and 3.3% net on the same property. The 3.2% net figure we publish uses 6.7%.
How the tax works. A non-resident's rental income is declared and taxed at progressive rates with the basic deduction and no local inhabitant tax (Income Tax Act arts. 164(1)(ii) and 165), which gives about 3–11% across typical rent levels. The 20.42% withholding often quoted is not the final burden, and per the National Tax Agency it does not apply at all when an individual tenant rents the home for own or family use; it forms the upper end of the band only as a ceiling. From 2027 the tiered basic deduction is withdrawn, lifting the range slightly to about 4–11%. Source: nta.go.jp No. 12014.
Where the price sits against its own history
Prices are +1.7% over five years and +25.9% over ten in local terms. Today’s level sits 76.2% above the city’s own long-run trend. A gap that size does not have to close, but it is the number to watch. Glopra’s bubble-risk score for Tokyo is 72 out of 100 — elevated risk. Of the 58 markets scored, 12 read higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast.
Tokyo house price index, 2016–2025 (2016 = 100)
| Year | Index |
|---|---|
| 2016 | 100 |
| 2017 | 104.3 |
| 2018 | 107.7 |
| 2019 | 111.5 |
| 2020 | 115.1 |
| 2021 | 124.8 |
| 2022 | 140.3 |
| 2023 | 150 |
| 2024 | 160.4 |
| 2025 | 173.2 |
Rebased to 100 in 2016, the index stands at 173.2 in 2025. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.
Who can buy in Tokyo
Freehold, including the land. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for Tokyo is built from asking prices from listings. It was last refreshed on 2026-09-28. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way, which is what lets Tokyo be compared with a country average or another city.
Sources: Tokyo Kantei · kantei.ne.jp · airbtics.com · housingjapan.com. Snapshot: 2026-09-28.
Latest Tokyo market analysis
- Japanese Housing Starts Reached 63,974 Units in August, Rising for a Fifth Month — 2026-09-30
- Japan's Construction Labour Shortage Widened to 1.3% in August While Material Prices Held Flat — 2026-09-27
- Tokyo Used Condominium Prices Fell in August for the First Time in 28 Months — 2026-09-24
- Tokyo New Condominium Prices Fell 9.1% per Square Metre in August as Supply Dropped 12.4% — 2026-09-20
- The Bank of Japan Raised Its Policy Rate to 1.25% on a 7-2 Vote — 2026-09-18
- Japanese Land Prices Rose a Fifth Year as Growth Narrowed Outside Tokyo and Osaka — 2026-09-17
- Foreign Buyers Accounted for 0.7% of Japan's Large-Scale Land Filings in Late 2025 — 2026-09-16
- Tokyo New Detached House Prices Hit a Post-2014 High in August — 2026-09-12
- Japan's Core Inflation Hit 1.8% in July, Pushing the Bank of Japan Toward 1.25% — 2026-08-23
- Greater Tokyo's Average New Condo Price Jumped 63.7% in July to a Record ¥164.93 Million — 2026-08-22
- Tokyo Used-Condo Sales Fell for a Fourth Month in July as Resale Prices Turn Negative — 2026-08-11
Related markets: Japan