Last month, Tokyo Kantei published a report that looked into the connection between apartment sizes and prices, and to see if there have been any identifiable shifts since the start of the pandemic.

It may come as no surprise that the price growth of apartments over 70 sqm (753 sq.ft) in Tokyo’s 23 wards far exceeded that of smaller apartments. 

With the first quarter of 2019 as the base year, the price index for apartments over 70 sqm reached 127.4 as of the third quarter of 2021. In other words, apartment prices in that size range had risen by 27.4% since Q1 2019.

For the small apartments under 30 sqm in size, the price index in 2021 Q3 was just 103.6, the poorest performer of the four size ranges. 

As the pandemic took hold, the capital saw a steep drop in the number of new residents that would normally move to Tokyo to start schooling and new jobs. This resulted in a drop in demand for smaller apartments. On the flip side, with white-collar workers spending more time at home, demand for larger living spaces has grown, especially with double-income households that can afford a larger space. These occupants are still staying put in Tokyo’s 23 wards as few companies allow staff to be fully remote and the outer suburbs may not offer the same conveniences, schooling and entertainment that is on offer by living closer to the city center. 

About the data:

For this report, Tokyo Kantei used price data for second-hand apartments between 5 ~ 15 years old.

Source: Tokyo Kantei, October 28, 2021.

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