Japan Property: Tokyo Condos, Akiya, Foreign Buyers — 2026-10-29

Top developments

Tokyo new-condo average hits record ¥114.94 million

The Real Estate Economic Institute reported on October 20 that the average price of new condominiums in the Greater Tokyo area reached ¥114.94 million for the first half of fiscal 2026 (April–September). This marks the first time the half-year average has exceeded ¥100 million since surveys began in 1973. In Tokyo’s 23 wards specifically, the average price hit ¥179.25 million, surpassing record highs for the fourth consecutive year. The surge is attributed to rising construction costs and a severe shortage of labor and materials, which has suppressed new supply.

Korean capital inflows surge sixfold

Korean remittances to purchase Japanese real estate have increased approximately sixfold over the past two years, driven by the weak yen and attractive yields in markets like Tokyo, Osaka, and Fukuoka. While this inflow supports demand, rising local property prices and increasing mortgage rates are beginning to squeeze returns for individual investors, potentially slowing the pace of growth in foreign capital inflows.

Niseko hotel supply up 46% amid seasonal imbalance

A new report from C9 Hotelworks highlights that hotel supply in Niseko, Hokkaido, has risen by 46% over the last twelve months. This rapid expansion is outpacing the resort's ability to fill rooms during the off-season, with summer room rates earning only about 12% of what winter rates command. The imbalance has raised concerns about the sustainability of the resort's current growth model and its reliance on foreign buyers for property investment.

LDP considers short-term resale restrictions

In response to the skyrocketing property prices in Tokyo’s central wards, the Liberal Democratic Party (LDP) is exploring measures to curb speculative buying ahead of the upcoming unified local elections. Proposals under discussion include regulations on short-term resale transactions, aiming to stabilize prices that have become inaccessible to average domestic buyers.

Local view

Japanese media outlets are expressing growing concern over the "¥100 million condominium" era becoming the norm in Tokyo. Yomiuri Shimbun reports that buyers are increasingly priced out, with many finding the new average prices "out of reach." The Tokyo Shimbun notes that the influx of buyers who cannot afford to purchase homes is driving up rental prices as well, creating a broader housing affordability crisis in the capital.

Local stakeholders in ski resorts are also reacting to the rapid transformation of their towns. Jiji Press highlights how foreign buyers and tourists are reshaping the identity of Niseko, with local communities grappling with the economic benefits versus the cultural and social impacts of a rapidly gentrifying resort town.

Context & numbers

• New Condo Average (Greater Tokyo, H1 FY2026): ¥114.94 million (First time exceeding ¥100 million)
• New Condo Average (Tokyo 23 Wards, H1 FY2026): ¥179.25 million (Record high for 4th consecutive year)
• Niseko Hotel Supply Growth: +46% year-over-year
• Korean Remittances for Property: ~6x increase over 2 years

On the radar

• Unified Local Elections: The LDP’s consideration of short-term resale restrictions is linked to political pressures ahead of the unified local elections, suggesting potential policy shifts in 2027.
• Akiya Taxation: Following Kyoto and Neyagawa, other municipalities are considering "vacant home taxes" (akiya tax) to address the 9 million vacant homes nationwide, which could impact foreign owners of uninhabited properties.
• FEFTA Reporting: Foreign buyers must continue to adhere to the ex-post Form 22 filing requirements under the Foreign Exchange and Foreign Trade Act (FEFTA) for property acquisitions, a rule that has been in effect since April 2026.