If you are considering buying or investing in Tokyo real estate, you will quickly run into the word toshin (都心, literally “the city center” or “urban core”). This is a distinctly Japanese piece of real-estate vocabulary: unlike “Central London” or “Downtown Manhattan,” which describe historically bounded districts, Tokyo’s toshin has no legal definition at all — its boundaries shift depending on who is speaking and in what context. Among the many variations, the question international investors search for most often is: which wards actually make up the toshin roku-ku (都心6区, the “Six Central Wards”)?
The toshin roku-ku (都心6区) is a real-estate industry term — not an administrative or legal category — for six of Tokyo’s 23 special wards: Chiyoda, Chuo, Minato, Shinjuku, Shibuya, and Bunkyo. The concept builds outward in layers. The toshin san-ku (都心3区, the “Three Central Wards”) — Chiyoda, Chuo, and Minato — form the innermost core, where Japan’s political, economic, and international-business functions concentrate. Add Shinjuku and Shibuya, the commercial and cultural hubs, and you get the toshin go-ku (都心5区, the “Five Central Wards”). Add Bunkyo, an academic district, and you arrive at the toshin roku-ku. The simplest way to hold this in mind: the larger the number attached to the term, the wider the area, and the more residential demand and everyday livability start to outweigh pure institutional prestige.
In this article, INA&Associates Inc. takes the distinction between the toshin san-ku, toshin go-ku, and toshin roku-ku as a starting point, and walks systematically through the extent of central Tokyo, 2025 price trends across Tokyo’s 23 wards, and how to choose an area by purpose. Whether you are a prospective homebuyer, an international investor evaluating Japanese real estate, or simply someone who wants an accurate picture of the Tokyo market, this guide is built to give you practical, decision-ready information.
Key Takeaways
- The toshin roku-ku refers to Chiyoda, Chuo, Minato, Shinjuku, Shibuya, and Bunkyo — a term built by successively adding wards to the toshin san-ku and the toshin go-ku.
- As a rule of thumb: the toshin san-ku suit wealth preservation, the toshin go-ku balance yield and appreciation, and the toshin roku-ku favor stable, owner-occupier-driven demand.
- Which ward and area you should choose changes depending on your purpose — a primary residence, an investment property (a sectional unit or a whole building), or office space.
- The progress of redevelopment projects and transit infrastructure is a critical factor shaping asset values in central Tokyo.
What Is the Toshin Roku-ku? A Complete Guide to the Boundaries and Definition of Central Tokyo
The toshin roku-ku (Chiyoda, Chuo, Minato, Shinjuku, Shibuya, and Bunkyo) is not an administrative designation but a market convention, with no ward-level statute defining “central Tokyo.” Grasping how the toshin san-ku, toshin go-ku, and toshin roku-ku relate to one another is the fastest way to understand the shape of central Tokyo as a whole.
The Toshin San-ku, Toshin Go-ku, and Toshin Roku-ku: Differences and Characteristics
The most basic way to talk about central Tokyo is through these three nested categories — toshin san-ku, toshin go-ku, and toshin roku-ku. Real-estate professionals across Japan use this vocabulary constantly, and each tier carries a distinct character and investment profile. For a reader used to a single “downtown” or “CBD” label, it helps to picture these three terms as concentric rings rather than three separate places.
The toshin san-ku (都心3区) comprises the three wards of Chiyoda, Chuo, and Minato. These wards function as the center of Japan’s politics, economy, and culture, and are recognized as central Tokyo in its narrowest sense. Chiyoda Ward concentrates the nation’s core institutions: the Imperial Palace (皇居, Kōkyo — the Emperor’s residence, built on the former site of Edo Castle), the National Diet Building, and the Supreme Court. Chuo Ward is home to the Bank of Japan and the Tokyo Stock Exchange. Minato Ward hosts numerous foreign embassies and the Japanese headquarters of international corporations, giving it a cosmopolitan character. Picture Washington D.C.’s government core, the City of London’s financial district, and an embassy row compressed into three adjoining wards — that density is what makes the toshin san-ku distinctive.
The toshin go-ku (都心5区) adds Shinjuku and Shibuya to the toshin san-ku, making five wards in total. Shinjuku Ward houses the Tokyo Metropolitan Government building, serving as the administrative center, and Shinjuku Station is the world’s busiest railway terminal by passenger volume — a transit hub without a real Western parallel. Shibuya Ward, meanwhile, is a globally recognized launchpad for youth culture and has undergone major redevelopment in recent years that continues to reshape the area.
The toshin go-ku concept layers commercial, cultural, and entertainment functions on top of the toshin san-ku’s traditional civic and financial roles, describing a broader central zone. These wards see strong demand not only for office space but for housing as well, and their real-estate markets serve a wide range of lifestyles.
The toshin roku-ku adds Bunkyo Ward to the toshin go-ku, for six wards in total. The name Bunkyo (文京, literally “capital of letters”) reflects its development as an academic district anchored by the University of Tokyo and other institutions. Strong residential quality and educational infrastructure make it especially popular with families, sustaining stable housing demand. If you want the underlying price data behind the toshin roku-ku, see also What Is Tokyo’s Toshin Roku-ku? A Complete Guide to Central Tokyo’s Six Wards and the 23-Ward Investment Map (2025), which lays out the groundwork for choosing an area.
The table below compares the characteristics of each category:
| Category | Constituent Wards | Key Characteristics | Primary Functions |
|---|---|---|---|
| Toshin San-ku (3 wards) | Chiyoda, Chuo, Minato | Center of politics, economy, and international functions | Government district, financial district, international business |
| Toshin Go-ku (5 wards) | Above + Shinjuku, Shibuya | Encompasses commercial and cultural functions | Commerce and entertainment |
| Toshin Roku-ku (6 wards) | Above + Bunkyo | Emphasis on education and residential environment | Academic and residential |
Laying out the toshin san-ku, toshin go-ku, and toshin roku-ku by “wards included,” “representative areas,” “characteristics,” and “suitability and use for real-estate investment” makes it immediately clear which tier fits your purpose. The comparison table below is designed to be used directly for that decision.
| Category | Wards Included | Representative Areas | Characteristics | Suitability for Real-Estate Investment |
|---|---|---|---|---|
| Toshin San-ku | Chiyoda, Chuo, Minato | Marunouchi, Otemachi, Ginza, Nihonbashi, Roppongi | Hub of politics, finance, and international business. Stable asset value and high liquidity | Suited to wealth preservation and inheritance planning. Long-term whole-building ownership or high-value units. Appropriate for ultra-high-net-worth individuals and institutional investors |
| Toshin Go-ku | Above + Shinjuku, Shibuya | Shinjuku, Shibuya, Ebisu, Omotesando | Strong commercial, cultural, and office demand with diverse rental demand | Emphasis on balancing yield and appreciation. The primary area for sectional-unit investment and rental management |
| Toshin Roku-ku | Above + Bunkyo | Hongo, Myogadani, Yushima, Koishikawa | Emphasis on educational and residential environment. Stable owner-occupier family demand | Suited to owner-occupied housing or long-term-tenancy rental. Appropriate for investors who want to minimize vacancy risk |
There Is No Official Definition of “Toshin X-ku” — Each Grouping Belongs to a Different Context
One premise comes first. Toshin 3-ku, 5-ku, and 6-ku have no basis in law. Neither the City Planning Act nor any Tokyo Metropolitan ordinance contains the term “Toshin 6-ku.” These are all real-estate industry conventions, which is exactly why the area they refer to shifts depending on who is using the term and for what purpose.
Comparing “Toshin 5-ku” with “Toshin 6-ku” without knowing this is meaningless. What matters is which grouping is the standard in which setting.
| Grouping | Wards included | Where it is mainly used | Stability of the definition |
|---|---|---|---|
| Toshin 3-ku | Chiyoda, Chūō, Minato | Asset value, luxury housing, HNWI-oriented property discussion | Stable (barely varies) |
| Toshin 5-ku | The above plus Shinjuku and Shibuya | The standard unit for office market statistics | Stable |
| Toshin 6-ku | The above plus Bunkyō | A broader city centre that includes residential and education districts | Broadly stable |
| Toshin 7-ku / 8-ku | Not fixed | An expanded phrasing used when the target area needs to be widened | Unstable. Always check |
Why Toshin 5-ku Became “the Office Unit”
Toshin 5-ku has the clearest substance of the three because it is the unit used in office market statistics. The vacancy rate and average rent for the “Tokyo Business District” published monthly by Miki Shoji cover exactly those five wards: Chiyoda, Chūō, Minato, Shinjuku and Shibuya. When market participants say “the vacancy rate in Toshin 5-ku,” they are in practice referring to this survey.
Most recently, the average vacancy rate stood at 1.95% as of July 2026 — an extremely tight level (11.37% for newly built buildings, 1.78% for existing ones). It shows that this five-ward grouping functions as a working indicator of office demand.
Source: Miki Shoji, “Office Rent and Vacancy Rates in Tokyo”
“Toshin 7-ku” and “Toshin 8-ku” Have No Agreed Composition
By contrast, there is no industry consensus on what Toshin 7-ku or 8-ku contain. Some add Taitō to Toshin 6-ku; others add Shinagawa or Meguro. It varies by who is speaking.
There is a reason for the drift. The larger the number, the further the target area can be widened while keeping the scarcity of the word “city centre.” If a property advertisement or a sales deck says “Toshin 7-ku,” always ask which wards that includes. The seller’s city centre may not be the one you have in mind.
The kanji-numeral spelling “都心六区” carries the same meaning; the difference in notation signifies nothing.
The Jōtō, Jōsei, Jōnan, and Jōhoku Districts: Regional Divisions and Characteristics
Tokyo’s 23 wards are sometimes grouped into four zones — Jōtō (城東, “east of the castle”), Jōsei (城西, “west of the castle”), Jōnan (城南, “south of the castle”), and Jōhoku (城北, “north of the castle”) — using the Imperial Palace (formerly Edo Castle) as the reference point. This is another distinctly Japanese framework: most Western cities have no equivalent of organizing an entire metropolis around compass-point relationships to a single historic castle site. The classification reflects each area’s historical development and remains an important reference point in the real-estate industry today.
Jōtō, east of the Imperial Palace, comprises seven wards: Taito, Sumida, Koto, Arakawa, Adachi, Katsushika, and Edogawa. This area developed as the historical center of shitamachi (下町) culture — the old “low city” merchant districts of the Edo period, distinct from the hillside yamanote (山手) areas once favored by the samurai class. In recent years the area has transformed dramatically with the construction of Tokyo Skytree, the opening of the Toyosu fish market, and the infrastructure built for the Tokyo Olympics and Paralympics.
Jōtō is known for relatively affordable real-estate prices and the warm, close-knit community feel typical of shitamachi neighborhoods. Koto Ward in particular has seen extensive high-rise condominium construction as part of the waterfront (湾岸, wangan) redevelopment, drawing attention as an area that balances access to central Tokyo with residential comfort.
Jōsei, west of the Imperial Palace, comprises six wards: Shinjuku, Shibuya, Nakano, Suginami, Setagaya, and Meguro. This area urbanized rapidly in the postwar decades and today concentrates a diverse mix of culture and commerce.
Jōsei’s defining feature is excellent access to central Tokyo via major lines including the JR Yamanote Line, the Chuo Line, the Keio Line, and the Odakyu Line. It also includes popular neighborhoods such as Daikanyama, Ebisu, Jiyugaoka, and Kichijoji, drawing residents who favor a sophisticated, design-conscious lifestyle.
Jōnan, south of the Imperial Palace, comprises three wards: Minato, Shinagawa, and Ota. This area has an established reputation as an upscale residential district, home to prestigious neighborhoods such as Shirokane, Azabu, and Denenchofu.
Jōnan is defined by its cosmopolitan environment and high asset values. Numerous foreign embassies and international corporations are based there, the foreign resident population is large, and the area functions as an internationally oriented residential enclave. Good access to Haneda Airport also drives demand from business travelers who move frequently between Japan and abroad.
Jōhoku, north of the Imperial Palace, comprises five wards: Bunkyo, Toshima, Kita, Itabashi, and Nerima. Well served by educational and medical institutions, this area is popular with families seeking a calm residential environment.
Jōhoku’s advantage is the ability to secure a good-quality residential environment at a relatively affordable price. Bunkyo Ward, which also sits within the toshin roku-ku, draws especially strong support from families raising children, thanks to its combination of excellent educational infrastructure and good access to central Tokyo.
The table below summarizes the characteristics of each area:
| Area | Constituent Wards | Key Characteristics | Representative Neighborhoods | Average Price Band |
|---|---|---|---|---|
| Jōtō | Taito, Sumida, Koto, Arakawa, Adachi, Katsushika, Edogawa | Shitamachi culture; active redevelopment | Asakusa, Toyosu, Kinshicho | Mid-range |
| Jōsei | Shinjuku, Shibuya, Nakano, Suginami, Setagaya, Meguro | Center of culture and commerce | Ebisu, Jiyugaoka, Kichijoji | High-range |
| Jōnan | Minato, Shinagawa, Ota | Upscale residential; cosmopolitan | Azabu, Shirokane, Denenchofu | Top-range |
| Jōhoku | Bunkyo, Toshima, Kita, Itabashi, Nerima | Academic focus; residential emphasis | Hongo, Ikebukuro, Otsuka | Mid-to-high range |
Choosing a Central Tokyo Area by Purpose: Residence, Investment, and Office
To state the conclusion up front: even within the same toshin roku-ku, the right ward depends entirely on why you are holding the property. For a residence, livability is the deciding factor; for an investment, yield and liquidity matter most; for an office, business convenience and industry clustering take priority. This is less pronounced in markets like the United States, where zoning more strictly separates residential and commercial districts; in Tokyo’s mixed-use wards, the same ward can serve very different purposes block by block. Below, we break down which wards and areas suit each purpose.
Choosing for a Primary Residence
For a primary residence, everyday livability and the quality of the educational and residential environment are the top priorities. On this measure, Bunkyo Ward stands out within the toshin roku-ku, as do the residential pockets of Shinjuku and Shibuya within the toshin go-ku.
Bunkyo Ward concentrates institutions such as the University of Tokyo and Ochanomizu University, and its calm streetscape and strong public safety make it a favorite among families. For dual-income households, the waterfront areas of Minato and Chuo wards, or the highly convenient residential pockets of Shibuya and Shinjuku, are also strong candidates if commuting convenience is the priority. If you expect to sell and move again in the future, it is worth thinking about resale liquidity even at the residence-selection stage. If you are undecided on where to live in central Tokyo, INA’s individual consultation service can help you work through your priorities.
Choosing for Investment (Sectional Unit or Whole Building)
For investment purposes, the optimal choice depends on whether you are buying a sectional condominium unit or a whole building, and whether your priority is wealth preservation or yield. If stable wealth preservation is the goal, the toshin san-ku is the natural candidate; if you want to balance yield with appreciation, the toshin go-ku fits; and if you want long-term operation with minimal vacancy risk, Bunkyo Ward within the toshin roku-ku is a strong option.
Sectional condominium investment can be started with a comparatively modest amount of capital, and in the toshin go-ku, the depth of rental demand makes it easier to keep vacancy risk low. Whole-building investment requires a larger initial outlay in the toshin san-ku, but is favored by wealthy individuals for its stable asset value and its usefulness in inheritance planning — a consideration that carries particular weight in Japan, where inheritance-tax valuation rules shape many high-net-worth purchase decisions differently than in the United States or Europe. Understanding the structural reasons why prime central Tokyo locations resist price declines will sharpen your investment judgment. For more background, see The Structural Mechanism Behind Why Prime Central Tokyo Land Prices Resist Decline.
Choosing for Office and Business Use
For office and business use, three factors matter most: access to business partners, ease of talent recruitment, and corporate brand image. On this measure, the toshin san-ku — Chiyoda, home to Marunouchi and Otemachi; Chuo, the financial district; and Minato, where international corporations cluster — form the core set of choices.
Startups and creative companies, meanwhile, often prioritize the clustering and network effects found in Shibuya and Shinjuku wards. Business real-estate decisions should weigh not just current rent levels but also surrounding redevelopment plans and building renewal cycles over the medium to long term.
Recommended Areas for Real-Estate Investment: An Analysis
For real-estate investment, the toshin san-ku is the strongest choice if wealth preservation is your priority, while surrounding wards such as Nakano, Koto, and Shinagawa are strong candidates if you want to balance yield with future growth potential. From here, we dig into the characteristics of the toshin san-ku — the core of the toshin roku-ku — and the concrete profile of each area worth watching.
Advantages and Disadvantages of Investing in the Toshin San-ku
Real-estate investment in the toshin san-ku (Chiyoda, Chuo, and Minato) is an aspiration for many investors, but understanding its characteristics accurately is the key to success.
Investment Advantages
The toshin san-ku’s greatest advantage is the stability of asset value. These areas function as the center of Japan’s politics and economy, and the likelihood of that position eroding is considered extremely low. Historically, even when external shocks such as economic crises or natural disasters have hit, values are said to have recovered and risen over the long run.
Strong rental demand is another important feature. The toshin san-ku concentrates the headquarters of major Japanese corporations and the offices of foreign firms, sustaining stable housing demand from high-income residents. Demand from expatriate staff and international business professionals is also strong, supporting rent levels and their potential to rise — not unlike the dynamic behind Manhattan or central London rents, scaled to Tokyo’s corporate density.
High liquidity should not be overlooked either. Because there is consistently a pool of prospective buyers for toshin san-ku properties, owners can generally sell at a fair price without having to time the market carefully. This is an important element that adds flexibility to an investment strategy.
Investment Disadvantages
On the other hand, the high initial investment amount is a major hurdle. Property prices in the toshin san-ku are high relative to other areas, and financing can be a challenge for individual investors. Financial institutions also tend to apply stricter loan screening to higher-value properties.
Low yield is another challenge. While property prices are high, rent increases have a ceiling, so gross yields tend to stay comparatively low, and profitability often looks weaker than in other areas.
High management costs are also worth factoring in. Many properties in the toshin san-ku are older buildings that require appropriately funded maintenance, and property tax and city-planning tax also tend to run higher.
Ranking and Analysis of Notable Investment Areas
Beyond the toshin san-ku, numerous other areas offer compelling investment appeal. Below is a ranking of notable investment areas that balance yield with future growth potential.
No. 1: Nakano Ward
Nakano Ward is one of the 23 wards that draws particular attention for real-estate investment. Served by major lines such as the JR Chuo Line rapid service and the Tokyo Metro Tozai Line, it offers good access to Shinjuku and Tokyo Station.
Nakano’s appeal lies in the balance between relatively affordable prices and stable rental demand. Redevelopment plans around Nakano Station are underway, and future asset appreciation is anticipated. The ward is also known internationally as a hub of Japanese subculture, drawing demand from a diverse range of tenants.
No. 2: Koto Ward
Koto Ward has transformed dramatically through waterfront-area development. It includes popular districts such as Toyosu, Ariake, and Odaiba, striking a balance between access to central Tokyo and residential comfort.
Koto’s defining features are an abundance of new and recently built properties and strong popularity with families. Infrastructure developed as a legacy of the Tokyo Olympics and Paralympics is well established, and long-term population growth is expected.
No. 3: Shinagawa Ward
Shinagawa Ward carries the brand of an upscale residential district within the Jōnan area, while also offering properties at comparatively accessible price points. Shinagawa Station is a stop on the Tokaido Shinkansen and is being developed as the starting terminal for the Chuo Shinkansen maglev line.
Shinagawa’s investment advantages are high transit convenience and international demand. Access to Haneda Airport is also good, sustaining stable demand from business travelers moving between Japan and abroad.
No. 4: Bunkyo Ward
Bunkyo Ward, part of the toshin roku-ku, enjoys strong support from families thanks to its rich educational environment. Numerous institutions including the University of Tokyo are located there, cementing its brand as an academic district.
Bunkyo’s defining features are long-term stable demand and a high-quality residential environment. Demand for family-oriented units is strong and long tenancies are common, enabling stable rental management.
No. 5: Shinjuku Ward
Shinjuku Ward, part of the toshin go-ku, hosts Shinjuku Station, one of Japan’s largest terminal stations. Commercial, business, and residential functions are well balanced, creating diverse investment opportunities.
Shinjuku’s investment advantages are overwhelming transit convenience and a diverse range of property types. Properties ranging from studios to large family units are abundant, accommodating a wide variety of investment strategies.
The table below compares investment areas. All yield figures are indicative and will vary by a property’s age, location, and timing:
| Area | Indicative Yield | Growth Potential | Risk | Initial Investment | Recommended Investor Profile |
|---|---|---|---|---|---|
| Nakano Ward | 5.5-6.5% | ★★★★☆ | ★★☆☆☆ | Moderate | Beginner to intermediate |
| Koto Ward | 5.0-6.0% | ★★★★★ | ★★★☆☆ | Moderate | Intermediate |
| Shinagawa Ward | 4.5-5.5% | ★★★★★ | ★★☆☆☆ | High | Intermediate to advanced |
| Bunkyo Ward | 4.0-5.0% | ★★★☆☆ | ★☆☆☆☆ | High | Stability-oriented investors |
| Shinjuku Ward | 4.5-5.5% | ★★★★☆ | ★★★☆☆ | High | Intermediate to advanced |
| Toshin San-ku | 3.0-4.0% | ★★★★★ | ★☆☆☆☆ | Highest | Advanced investors and institutions |
Redevelopment, Future Growth, and Investment Timing
Multiple large-scale redevelopment projects are currently underway across Tokyo’s 23 wards, and they represent an important factor in real-estate investment decisions. For a systematic look at how central Tokyo redevelopment affects asset value, see also An Analysis of How Redevelopment Affects Real-Estate Value.
Redevelopment in the Toranomon–Azabudai Area
In Minato Ward’s Toranomon–Azabudai area, Azabudai Hills (麻布台ヒルズ) — one of Japan’s tallest mixed-use complexes — opened in 2023 and is said to be having a significant effect on surrounding property values. Continued development is planned for this area, with further value increases anticipated.
Redevelopment in the Toranomon–Azabudai area is aimed at strengthening international competitiveness, with efforts underway to attract foreign companies and build out an internationally oriented living environment. This is expected to further increase real-estate demand from wealthy foreign residents.
Redevelopment Around Shinagawa Station
Around Shinagawa Station, large-scale redevelopment is progressing ahead of the opening of the Chuo Shinkansen maglev line. Once the maglev opens, Shinagawa is expected to become a new transit hub connecting Tokyo and Nagoya, further raising its value.
Redevelopment around Shinagawa Station aims at concentrating business functions and strengthening international urban functions, and both office demand and demand for luxury housing are expected to rise.
Development in the Toyosu–Ariake Area
Koto Ward’s Toyosu–Ariake area continues to develop as a district rich in sports and cultural facilities, a legacy of the Tokyo Olympics and Paralympics. The opening of the Toyosu fish market has also drawn attention to the area as a new hub of food culture.
This area’s defining feature is planned urban development, which has created a cityscape where residential and commercial environments coexist harmoniously. Continued population inflow is expected, along with strong long-term investment value.
Thinking Through Investment Timing
The right timing to invest in a redevelopment area varies greatly depending on the project’s stage. As a general rule, five to ten years pass between a redevelopment plan’s announcement and its completion, so earlier investment tends to offer greater potential returns — but it also carries greater risk from plan changes or delays.
Judging the optimal investment timing requires weighing how concrete the plan has become against the progress of infrastructure development. If you are also thinking ahead to an eventual sale, it is worth designing your acquisition and your exit together — for reference, see How to Judge Exit Strategy and Sale Timing for Central Tokyo Condominiums.
Three Strategic Points for Successful Real Estate Investment
To succeed in Tokyo real estate investment, setting clear investment goals, rigorous cash flow simulations, and advance preparation of risk countermeasures are indispensable.
Clarify Investment Goals and Exit Strategy
Only by defining the investment purpose can an appropriate strategy be formulated. For example, if the goal is to secure 160,000 yen per month in rental income in retirement, working backward clarifies the required number of properties, price range, and yield. Formulating an exit strategy is also a point to consider before starting to invest.
Cash Flow Simulation Under Stringent Conditions
Real estate investment is a business, and after purchase you are responsible for operating a rental business as an owner. The purpose of simulation is to understand "what is the maximum loss I could incur." Create your own simulation under stringent conditions rather than relying on the optimistic figures provided by real estate companies.
Understand Risks in Advance and Implement Countermeasures
Main risks and their countermeasures are as follows:
| Risk | Countermeasure |
|---|---|
| Vacancy risk | Select areas within 10-minute walk of station, accessible by multiple rail lines |
| Rent delinquency risk | Stricter tenant screening; delegation to reliable management company |
| Environmental change risk | Diversify tenant types; choose multiple areas with planned redevelopment |
The Impact of Foreign Investors on Tokyo's Real Estate Market
One factor in the property price surge that cannot be ignored is the growing presence of foreign investors. The inflow of overseas capital into Japan's real estate market is boosting demand and accelerating price increases, particularly for high-end properties.
In the global real estate market, Tokyo has long been considered relatively affordable on a per-square-meter basis compared to international cities such as London, New York, Singapore, and Hong Kong. In addition, property ownership rights in Japan are legally well-protected, and the country's political and economic stability make it attractive to overseas investors as a destination for risk diversification. So just how much real estate are foreign nationals actually purchasing in Japan?
- Foreign buyer ratio for high-end properties: According to the "Second Half of Fiscal 2024 Developer Survey" by Mitsubishi UFJ Trust and Banking Corporation, approximately 20–40% of buyers of newly built condominiums in Tokyo's three central wards (Chiyoda, Minato, and Shibuya) were foreign nationals. Some 30.8% of developers responded that the figure was "20% or more but less than 30%," and another 30.8% said "30% or more but less than 40%," with 7.7% even reporting "50% or more foreign buyers." In other words, foreign nationals account for a significant share of the oku-mansion market in central Tokyo. A separate study found that in the past year, 29.9% of ownership transfers for tower condominiums priced above 100 million yen in the Tokyo waterfront area of Chuo Ward (Kachidoki, Harumi, and Tsukishima) involved foreign nationals. A clear trend emerges: the higher the price bracket, the greater the proportion of foreign buyers.
- Surge in inquiries from foreign nationals: According to inbound-focused real estate brokers, "inquiries about properties from foreign nationals doubled in 2023 compared to the previous year." Inquiries from China in particular have been high, driven by the appeal of "the sense that Japanese property is effectively 30% cheaper due to the weak yen" and "the fact that property ownership rights are properly guaranteed in Japan," fueling purchasing enthusiasm especially among Chinese buyers. This trend has spread through social media and Chinese-language real estate listing sites, and it is said that within affluent communities inside China, the perception that "now is the time to buy Tokyo real estate" has become widespread.
- Impact on transaction volumes: Precise nationality-based transaction data is not publicly tracked, but private-sector research reports that "overseas investors account for approximately 25% of investment in Japan's major properties with transaction values of 1 billion yen or more." In other words, in the world of large-scale properties (office buildings, large commercial facilities, etc.), roughly one in four transactions involves overseas capital. Foreign investment money is moving markets not only in high-end central condominiums but also in commercial real estate such as hotels and offices. It is also worth noting that Japan has almost no regulations on property purchases by foreign nationals, and unlike Singapore or Australia, there are no additional stamp duties or purchase restrictions for foreign buyers — meaning the barrier to entry for overseas investors is low, which is another factor encouraging capital inflows.
These data points make clear that foreign investors have penetrated quite deeply into Japan's real estate market, and Tokyo's high-end property market in particular. As a result, the presence of foreign nationals has grown to the point where even extreme views have emerged, such as "in the near future, central Tokyo may become a city where no Japanese people live." That said, the inflow of foreign investors also has positive aspects, including increasing market liquidity and stimulating real estate development. The problem is that these benefits tend to be concentrated among a subset of wealthy individuals and developers, while for ordinary homebuyers the impact takes the form of higher prices and increased financial burden. From an international perspective, Singapore levies an additional stamp duty of as much as 60% on foreign buyers, while Australia and Canada have also tightened regulations and taxation on residential property purchases by foreign nationals. Japan has virtually none of these restrictions, and this may well become a topic of policy debate going forward.
Trends in Land and Condominium Prices: Tokyo's Real Estate Surge by the Numbers
Here, let us revisit recent land price and new condominium price trends through the data. Tracing the numbers gives a more concrete sense of the scale and speed of the price surge.
- Upward trend in published land prices: Land prices have risen nationwide since the COVID-19 period, but the rate of increase in the Greater Tokyo Area is particularly pronounced. In the 2024 Prefectural Land Price Survey (benchmark land prices), residential land in the Tokyo metropolitan area rose 3.6% and commercial land 4.8%, marking three consecutive years of increases. Published land prices showed Tokyo's 23 wards rising 5.4% for residential land and 7.0% for commercial land (both year-on-year), with an overall average increase of 4.8% — a wider margin than the previous year. The highest-priced residential land point in Tokyo was in Akasaka 1-chome, Minato Ward (5.35 million yen per square meter), with a 4.5% increase. Land prices, after a temporary lull during the pandemic, have clearly resumed an upward trajectory.
- Sharp rise in new condominium prices: As noted, the average price of newly built condominiums in the Greater Tokyo Area surpassed the 80 million yen mark in 2023, setting a new all-time high. In Tokyo's 23 wards in particular, properties priced at "50 million yen or below" — which accounted for nearly 50% of units sold in 2013 — shrank to approximately 10% by 2023. Conversely, the proportion of properties priced above 100 million yen (oku-mansions) surged from 5.2% (2013) to 33.3% (2023), illustrating a market where supply is concentrated at the high end. The 23 wards' average new condominium price rose 39.4% compared to 2022 to exceed 100 million yen, making the shift to "oku-mansion normalization" starkly apparent. Entering 2024, that trend has continued, with the overall average price for newly built condominiums across Tokyo's 23 wards most recently reaching approximately 118.62 million yen (average unit price of approximately 5.7 million yen per tsubo). This speaks to a reality in which a "standard condominium" in Tokyo's 23 wards is rapidly becoming a thing of the past.
- Spillover into the existing condominium market: The surge in new condominium prices is also affecting the existing property market. Contract prices for existing condominiums in the Greater Tokyo Area have risen consistently since 2012, with significant price appreciation seen in recent years not only in central areas but also in suburban regions. For example, in Tokyo's outlying areas (outside the 23 wards) and Kanagawa Prefecture, average prices have surged sharply entering the 2020s, with the "70–100 million yen" range now accounting for the largest share of transactions — reflecting an overall shift toward higher price points. The fact that the upward price trend is continuing across the real estate market including existing properties is one reason general consumers find it increasingly difficult to purchase their own homes. Data from the East Japan Real Estate Distribution Organization (REINS) also show that the average contract price for existing condominiums in the Greater Tokyo Area continues to be revised upward year after year, highlighting a situation in which switching from new to existing properties provides no escape from the price surge.
As these data demonstrate, Tokyo's property price surge represents a historic juncture surpassing even the bubble era. While it has long been said that "buying a home is a once-in-a-lifetime purchase," the bar is rising ever higher, and an increasing number of price points are out of reach for households with average incomes. Looking at mortgage repayment burden ratios (the ratio of annual repayment to annual income), it has become not uncommon for central Tokyo properties to require borrowing more than ten times one's annual income — rendering the conventional guideline of "five to seven times annual income" obsolete. Statistics from the Ministry of Internal Affairs and Communications' Household Survey and similar sources also reveal the reality of mounting housing costs squeezing household finances, with particular concern about declining rates of homeownership among younger generations. When considering a property purchase, it is essential to develop a comprehensive financial plan that accounts not just for the purchase price but also for ongoing costs such as management fees, repair reserve funds, and property taxes.
5 Risk Management Items for Beginners
1. measures against vacancy risk
Vacancy is the biggest risk factor in real estate investment. The most important countermeasure is to choose an area with high demand. Demand is stable in central Tokyo, near major train stations, and in areas with a high concentration of universities and companies. Areas with convenient transportation access, such as those along the Yamanote, Chuo, and Tokyu lines, are particularly recommended.
Appropriate rent setting is also important. Setting rents slightly lower than the surrounding market rate will shorten the vacancy period. Also, it is effective to set the start of occupancy in February to April, when demand is at its peak. In terms of facilities, maintain the competitiveness of the property by offering value-added services such as free Internet access and regularly updating facilities.
2) Interest Rate Rise Risk and Countermeasures
Rising interest rates will result in worsening cash flow due to increased loan repayments. Interest rate types include fixed rate, floating rate, and fixed term option, each with different characteristics. Fixed interest rates offer stable repayment amounts but higher interest rates, while variable interest rates offer lower initial repayment amounts but are subject to the risk of future fluctuations.
Countermeasures include increasing the equity ratio (about 20-30%), setting a longer repayment period to reduce the monthly repayment amount, and securing sufficient funds to allow for early repayment when interest rates rise. It is also important to choose a financial institution with a "5-year rule" or "1.25x rule.
3. property aging and repair plans
It is necessary to have a plan to prepare for equipment failure due to aging, unexpected repairs (e.g., water leakage, equipment failure), and large-scale repairs (e.g., exterior wall painting, roof repair).
In the case of condominiums, it is important to set aside a monthly repair reserve of approximately 5,000-6,000 yen and review it according to the age and structure of the building. As preventive maintenance, early detection and early action should be taken through periodic inspections, and planned renovation should be carried out using the time when the building is vacant. In the case of condominium ownership, it is also important to confirm the adequacy of the management association's repair reserve fund and large-scale repair plan.
4. disaster risk countermeasures
Tokyo is a high-risk area for earthquakes and flooding, but damage can be minimized with appropriate countermeasures. When selecting a property, it is important to check hazard maps, confirm the strength of the ground (liquefaction risk), and choose a property that meets the new earthquake resistance standards (June 1981 or later). Reinforced concrete construction is considered more resistant to earthquakes than wooden construction.
Insurance measures are also important, and fire insurance (with basic coverage and water and wind damage clauses), earthquake insurance (purchased as a set with fire insurance), and rent compensation insurance (covering loss of rent income due to damage) may be utilized. Diversification of disaster risk by investing in multiple areas is also effective.
5. prevention and resolution of tenant problems
Tenant selection is extremely important. Basic measures include checking credit information, confirming a stable source of income, and using a joint guarantor or rent guarantee company.
Effective measures against rent arrears include early detection and early response (contact from the first month), flexible payment arrangements such as installment payments, and use of a rent guarantee company. In addition, as countermeasures against problems when vacating, record photographs of the room conditions at the time of moving in, clearly explain the scope of restoration to its original condition, and have a third party attend the inspection of the property.
Current Tax Benefits and Regulations
Major tax benefits as of 2025
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Depreciation Allows the acquisition cost of a building to be divided and expensed over the useful life of the building. The useful life varies depending on the structure of the building: 22 years for wood construction and 47 years for reinforced concrete construction. This system allows the taxpayer to record expenses that do not involve actual cash outflows, thereby reducing taxes.
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If real estate income is in the red, it can be offset against other income, such as employment income. Especially in the early stage of investment, depreciation expense is large, so the tax saving effect is high.
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Special Exception for Small Building Lots, etc. If the requirements are met, the assessed value for inheritance tax purposes can be reduced by up to 50% (up to 200 m2) for rental real estate (residential land used for loan business).
Major Laws and Regulations Related to Real Estate Investment
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Land and House Lease Law The Land and House Lease Law protects tenants and prohibits refusal of renewal or request for cancellation of lease without just cause.
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The Building Standards Law and the Urban Planning Law regulate the safety of buildings and the use of land, including earthquake resistance standards and restrictions on floor-area ratio and building-to-land ratio.
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Impact of Civil Code Amendment on Lease Contracts The April 2020 amendment to the Civil Code (Law of Obligations) changed the joint guarantor system (requiring the setting of a maximum amount) and clarified the obligation to restore the property to its original condition.
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Tokyo-specific regulations Tokyo's 23 wards have their own regulations, such as the ordinance for studio apartments, which stipulate minimum unit size (generally 25m2 or more, although this varies by ward) and the obligation to have a family-type unit attached to the unit.
Conclusion
Understanding precisely the extent of central Tokyo — and in particular, which wards the toshin roku-ku refers to — is the starting point for making a sound real-estate decision. The toshin san-ku / toshin go-ku / toshin roku-ku framework and the Jōtō / Jōsei / Jōnan / Jōhoku area classification each carry distinct characteristics and investment value, and the right choice depends on your investment purpose and budget.
As of 2025, Tokyo’s 23-ward real-estate market shows an overall upward price trend, though differences emerge by area and property type. In the toshin san-ku, stability of asset value is the greatest appeal, while low yield and a high initial investment amount are the hurdles. By contrast, notable areas such as Nakano and Koto wards strike a reasonable balance between yield and future growth potential, making them a realistic choice for a broad range of investors.
Making a successful real-estate choice requires analysis from multiple angles — not just price and yield in isolation, but also an area’s future growth potential, transit convenience, residential environment, and ease of management. Redevelopment plans and transit infrastructure development are likewise important factors shaping long-term asset value.
As a next step, if you would like to move forward with a concrete evaluation, we recommend professional market analysis together with detailed due diligence on individual properties. INA&Associates Inc. provides high-quality real-estate consulting for high-net-worth and ultra-high-net-worth clients, and proposes solutions tailored to each client’s goals.
Tokyo’s real-estate market is expected to keep evolving. Gathering the right information, drawing on expert advice, and maintaining a long-term perspective will be the keys to success.
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Frequently Asked Questions
Q1: What wards, specifically, make up the toshin roku-ku?
A: The toshin roku-ku is a real-estate industry term for six wards: Chiyoda, Chuo, Minato, Shinjuku, Shibuya, and Bunkyo.
Adding Shinjuku and Shibuya to the toshin san-ku (Chiyoda, Chuo, and Minato) produces the toshin go-ku, and adding Bunkyo produces the toshin roku-ku. Because this is not an official administrative classification but a market convention, the exact boundary is sometimes described differently by different sources or companies. It helps to remember that the larger the number, the wider the area, and the stronger the residential and everyday-livability character becomes.
Q2: For investment, is the toshin san-ku or the toshin go-ku the better choice?
A: The best choice depends on your investment purpose and available capital.
The toshin san-ku suits investors who prioritize wealth preservation, with long-term value stability and high liquidity as its greatest advantages. The toshin go-ku (particularly Shinjuku and Shibuya wards), by contrast, allows for a lower initial investment than the toshin san-ku while still offering meaningful potential for value appreciation.
As a rule of thumb, the toshin go-ku suits investors who prioritize yield, and the toshin san-ku suits those who prioritize wealth preservation. That said, investment value varies significantly based on an individual property’s location and conditions, so a detailed comparison of specific properties remains essential.
Q3: Which areas are suitable for a beginner starting real-estate investment?
A: Nakano Ward and Bunkyo Ward are good candidates for beginners.
Nakano Ward allows you to start investing at a relatively affordable price, with stable rental demand. Transit convenience is also good, and it is manageable for a first-time investor. Bunkyo Ward carries a higher price point than Nakano, but its rich educational environment supports long-term, stable demand, and vacancy risk is low.
Beginners are encouraged to start with a small-scale investment of one or two properties, then expand once they have grown comfortable with market trends and management operations.
Q4: Will central Tokyo real-estate prices keep rising?
A: The long-term trend is expected to remain upward, though short-term corrections are possible.
Factors supporting central Tokyo real-estate prices include continued population concentration, the consolidation of corporate headquarters functions, and demand from foreign investors. Because these factors are expected to persist for the foreseeable future, the long-term upward trend is likely to be sustained.
That said, changes in economic conditions, shifts in monetary policy, and changes in the international situation could all trigger short-term price adjustments. In making any judgment, it is important to hold a long-term perspective while watching market trends carefully.
Q5: Which areas are popular with foreign investors?
A: The toshin san-ku and the Jōnan area are said to be especially popular with foreign investors.
Minato Ward (Roppongi, Azabu, Akasaka), Chiyoda Ward (Marunouchi, Otemachi), and Chuo Ward (Ginza, Nihonbashi) all carry high international name recognition and see sustained demand from wealthy foreign buyers. Shinagawa and Meguro wards, part of the Jōnan area, are also popular with foreign investors for their upscale residential brand image.
These areas also see strong rental demand from foreign residents, supporting stable or rising rent levels. However, because foreign investor activity is sensitive to international conditions and exchange-rate movements, changes in the market environment warrant close attention.
