How Has Luxury Housing in Tokyo Evolved?

Luxury Real Estate in Tokyo, Japan - Coming of Age

It would seem that Tokyo can do nothing but prosper. This city has been a centre of industry for decades, and its growth has never halted, even during Japan's "lost decade" of the 1990s. Tokyo has traditionally been a major international hub due to its massive size and nonstop activity. There has been a dramatic growth in the number of foreign visitors visiting Tokyo from Japan in recent years. Tokyo's luxury home market is luring an unprecedented number of foreign purchasers to the city, who have long been drawn to the city's crowded thoroughfares and skyscrapers of glass and steel.

Japanese property and luxury real estate have benefited greatly from the government's initiatives. Over the last decade or so, the Japanese real estate market has expanded rapidly due to very cheap borrowing rates, a purposely depreciated yen, and significant amounts of redevelopment and real-estate investment. Although this trend has been fairly dispersed over Japan (some regions have not experienced similar expansion), it has been most noticeable in the greater Tokyo area, particularly in the central business districts of Chiyoda, Chuo, Minato, Shinjuku, and Shibuya. Since around 2013, real estate prices have increased at an alarming rate.

As a result, wealthy people from all over the globe are showing a lot more enthusiasm for investing in Tokyo's high-end real estate market. Why, however, are so many of them willing to shell out their hard-earned cash?

There are very few Asian nations that do not set any limitations on foreigners owning land or property, but Japan is one of them. In Japan, neither Japanese citizenship nor a resident visa is required to purchase real estate. The only thing that purchasers have to do is report the transaction to the Bank of Japan. Those in need of a home loan will find the process to be rather painless as well. A foreign national's visa status and his or her desire to remain in Japan throughout the loan's payback duration are the only potential stumbling blocks Japanese banks may present when offering mortgage loans to foreign nationals.

Interest in Japan's high-end home market has soared in recent years, and it's easy to see why given the country's liberal property laws.

The expansion of the Japanese real estate market including luxury real estate market in Tokyo is due in part to Abe's policies and the country's relatively foreigner-friendly real estate legislation, but there are also significant regional considerations at play. One of them is the Olympic Games in 2020, which will have a significant impact on the Japanese economy. The other aspect relates to typical Japanese consumer behaviour.

Wealthier older Japanese, who had previously relocated to the outskirts, are increasingly migrating to luxury residences in the city centre as prices for such condominiums have risen. There has been a tax-saving incentive in making these reasonably secure investments in part because inheritance taxes in Japan have been rising.

There are literally a multitude of quality luxury apartments for sale in Tokyo that are advertised on luxury real estate websites by some of the top luxury brokers. These premium real estate listings may include some of the finest traditional Japanese homes for sale in Tokyo.

Many expats interested in Tokyo real estate are curious about the most costly luxury homes in Tokyo as well as the average price per square foot for luxury real estate in Tokyo. These details are accessible from Tokyo's expert luxury real estate service providers.

Some facts on Tokyo luxury real estate

Can a non-Japanese citizen own a home in Japan?Unless they are Japanese citizens or permanent residents, foreign nationals in Japan are not subject to any restrictions based on their visa status, nationality, or duration of stay in the country. This implies that foreign nationals are no longer prohibited from lawfully purchasing property in Japan.

Where exactly is Tokyo's most opulent neighbourhood hidden away?
One of Tokyo's wealthiest neighbourhoods is Aoyama, located in Minato Ward's far northwest. The area is famous all over the world for its hip stores, stylish restaurants, and exciting nightlife.

To which neighbourhood of Tokyo do the city's A-listers mostly belong?
Hollywood's A-listers used to call the affluent Tokyo neighbourhoods of Denen-Chofu and Seijo Gakuen home in the decades prior to the current.

If you could only live in one area of Tokyo, where would you select and why?
Kichijoji, a neighbourhood in Tokyo, is often regarded as the best place to live in the whole city. The area is a bustling commercial centre, with hip cafés and an array of unique stores, all surrounded by verdant landscaping.

Among the notable luxury real estate agencies in Tokyo are Plaza Homes Ltd, Blackship Realty Inc, ihome Real Estate, Fontana Savills Japan Co., Ltd., Mitsui Fudosan Residential, World Clover, Cushman & Wakefield Tokyo, and others.