It’s gaining momentum and the future pipeline is likely to raise the top prices equivalent to those seen in Manhattan and London.

Originally published June 14, 2022.

Tokyo’s ultra-luxury residential market has continued to grow on the back of the redevelopment seen in the city. Tokyo has seen a slate of large redevelopment projects over the past few years which have added new landmarks and improved city infrastructure. Over the next decade, more projects are in store and will continue to reshape the city’s physical and economic landscapes.  

The ultra-luxury residential segment is expected to evolve further while Tokyo is undergoing this transformation. While the market is still considered a niche one, it is expanding. Indeed, before the pandemic, the total number of ultra-luxury units was around 50, but this figure has been steadily increasing. This could be primarily attributed to the mega-sized developments in areas such as Toranomon and Azabudai. Moreover, with the ambiguity about the office sector’s prospects, it is also a possibility that some space originally planned for offices in new mixed-use towers will instead be sold as ultra-luxury residential units.