US luxury home-exchange service ThirdHome enters Japan

Japan's luxury real estate market has seen a notable transformation, with Tokyo consistently ranking as a top city for cross-border investment in the Asia Pacific region. A weakened yen has made premium properties more accessible to international buyers, attracting high-net-worth individuals globally. Data from Plaza Homes indicates that Asia Pacific net buying intentions reached 17% for 2026, an increase from the previous year, signaling growing investor confidence.

In 2026, the average residential price in Tokyo was 91.4 million JPY, marking a 10.7% year-on-year increase. Central Tokyo luxury condos frequently exceed 120 million JPY. In 2024, Tokyo recorded 28 ultra-luxury transactions valued at over 500 million yen. International buyers now account for 20-40% of new apartments sold in Tokyo's core wards, with foreign investment totaling $10.2 billion in 2024, a 45% surge in the first half of the year.

Prime luxury locations attracting high-net-worth buyers include Tokyo's "Three Core Wards" (Minato, Chiyoda, and Chuo), where new luxury condominiums regularly trade above 100 million yen. Niseko and the broader Hokkaido resort corridor are also popular, particularly for high-end condominiums that can function as short-term rentals, appealing to buyers seeking both lifestyle and income generation.