Part of the Toranomon-Azabudai Project in central Tokyo. Home to Japan’s most expensive penthouse.

Tokyo has seen the highest increase in luxury residential prices in Asia, according to Knight Frank’s Prime Global Cities Index for the third quarter of 2022. It also ranked 3rd worldwide, after Dubai and Miami.

The capital saw a 17.0% year-on-year increase in luxury property prices, and a 10.6% increase from the previous quarter. This should come as no surprise to anyone who has been looking to purchase a home or apartment in central Tokyo over the past year. In fact, the latest report issued by multi-listing database REINS showed a 21.1% y-o-y increase in the reported sale price of second-hand apartments in central Tokyo’s three wards of Chiyoda, Chuo, and Minato in October. Across Tokyo’s 23 wards, the average sale price was up 14% from last year.

On a building-by-building basis, there have been some recently reported transactions at higher-than-average prices:

  • City Tower Azabujuban: A two-bedroom, two-bathroom unit sold in November 2022 for 36% more than it sold for in 2021. 
  • Akasaka Tower Residence: The average sale price to date in 2022 is around 3,125,000 Yen/sqm, 39% higher than the average in 2021.
  • Aoyama Park Tower: The average sale price in 2022 has been 29% higher than in 2021.
  • Park Court Roppongi Hilltop: The average sale price in 2022 is up 23% from 2021 and up 38% from 2020.

The Knight Frank report uses data provided by a local brokerage firm in Tokyo and is based on contracts above 100 million Yen (US$720,000).

Source: Knight Frank Prime Global Cities Index – Q3 2022.