Surging Tokyo Apartment Prices Drive Shift Toward Detached Homes

In the Tokyo metropolitan area, the demand for housing among office workers is rapidly shifting toward detached homes due to soaring apartment prices and concerns over construction delays.

As apartment prices skyrocket, with even pre-owned units in central Tokyo exceeding 100 million yen (approximately 950 million won), more homebuyers are opting for detached houses, which offer relatively moderate price growth and lower maintenance cost burdens.

According to reports from the Sankei Shimbun and other sources on June 9, the average price of a new apartment in the Tokyo metropolitan area for the 2025 fiscal year rose 15.3% from the previous year to 93.83 million yen (approximately 890 million won), marking a record high for the fifth consecutive year.

The difficulty in purchasing new apartments has been compounded by labor shortages in the construction industry, rising material costs, and concerns over potential move-in delays caused by supply chain disruptions linked to tensions in the Middle East.

As demand from those who have given up on buying new apartments floods the secondary market, the prices of pre-owned apartments in downtown Tokyo have also risen sharply.

A survey by real estate information provider LIFULL HOME'S revealed that the proportion of high-end pre-owned apartments priced at 100 million yen or more within Tokyo's 23 wards surged from 3.4% in 2020 to 18.8% in 2025.

A new term, "Okushon"—a portmanteau of "oku" (100 million) and "mansion" (apartment)—has even emerged locally to describe these high-priced units.

An industry official assessed the situation, stating, "It has become virtually impossible for average homebuyers, such as dual-income couples, to purchase apartments in downtown Tokyo."

Consequently, detached homes are gaining attention as an alternative, as they are free from concerns over long-term increases in management fees or repair reserve funds, and the land remains a valuable asset even if the building's value depreciates.

A recent survey by a housing supplier showed that one in four people who were considering buying an apartment (and one in three among those in their 20s and 30s) have turned their attention to detached homes.

Sankei added that the preference for well-located detached homes is becoming particularly pronounced among those in their 20s, who are highly interested in asset formation and are considering future resale value.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.