Tokyo, the vibrant and cosmopolitan capital of Japan, is rapidly becoming a magnet for high-net-worth individuals (HNWIs) from across the globe. The city's luxury real estate market has been witnessing an upsurge in interest, fuelled by an array of opulent property developments and an increasing trend of affluent internationals purchasing second homes in this dynamic metropolis.
In a recent deal that underscores Tokyo's allure to the global elite, a lavish penthouse residence at The Kita, a posh complex masterminded by the renowned architect Kengo Kuma, was sold for a staggering $50 million. Developed by Vancouver's Westbank Corp., this 5,457 square foot unit boasts a rooftop infinity pool and offers panoramic views of the verdant forests surrounding the iconic Meiji Shrine. The yen's current weakness coupled with low interest rates have made Tokyo's luxury real estate market particularly attractive to foreign investors. The most coveted properties are those that feature outdoor pools and deliver round-the-clock valet services.
Earlier this year, Mitsui Fudosan Co., a leading developer, started selling 1,002 units at its prestigious Mita Garden Hills, which included a three-bedroom apartment listed at $4.1 million. This has resulted in the average selling prices of apartments in Tokyo doubling in March, followed by 60% and 48% increases in April and May respectively, according to data from the Real Estate Economic Institute. Post Lintel Investment Management, a Tokyo-based real estate firm, has reported an uptick in luxury housing transactions among wealthy clients from Hong Kong, Singapore and Taiwan. The company noted a surge of approximately 40% in international sales over the past two years.
Joey Yang, the firm's executive director, attributes this growth to clients seeking to diversify their portfolios and mitigate risk amid escalating geopolitical uncertainties associated with China. Tetsuya Kaneko, the head of research at global real estate giant Savills, opines that Japan's luxury real estate market has prospered following the full reopening of the country’s borders post the Covid-19 pandemic. For HNWIs contemplating a second home in Tokyo's luxurious real estate market, it's prudent to utilize a secure international payments service.