High-Priced Tokyo Condos Are Selling Fast To Overseas Buyers

Central Tokyo’s existing stock of prime condominiums are being snatched up – just not by the Japanese.

Overseas investors see these properties as undervalued, especially since the yen’s depreciation in 2022, and have therefore been purchasing them as investments, not full-time homes.

Many of the sales exceed 100 million yen ($693,000), a price point that was earlier more associated with new condos than pre-owned units and, as such, wealthy potential Japanese buyers are finding themselves pushed out of the market.

Average resale values for condos in the Tokyo area is now about a third more than the new construction price – a stark contrast to just five years ago when it was about 10% below the construction price.

Another factor is the perceived stability of Japan’s institutions and political system, attributes that are attracting overseas investors who recently have been losing interest in China for its perceived deficits in those regards.

Source:
Nikkei Asia – 29 June 2023

Image:
Chris 73 / Wikimedia Commons (article thumbnail)

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