Introduction

Tokyo’s ultra-luxury residential market is underpinned by a high concentration of UHNWIs in Japan and increasing overseas interest. Although the market was historically considered undersupplied, the tide has been changing over the past few years, with leading players such as Mitsui Fudosan and Mori Building paving the way. Encouraged by potential growth in this sector, new international players have also ventured into this segment. 

As Tokyo continues to go through a large redevelopment phase and solidify its status as a global destination, high-quality residential properties in prime locations should see increasing popularity. Recognised as a dynamic mega-city with a stable political environment and rule of law, as well as great access to world-class attractions, Tokyo is a low-risk environment where UHNWIs can comfortably store wealth.

Demand Drivers for Ultra-luxury Residences

Japan’s ultra-luxury residential market is buttressed by the country’s large cohort of wealthy individuals. According to Wealth-X, a global wealth information provider, Japan was home to 19,820 individuals with a net worth of US$30 million or more in 2019, the third highest number in the world. Out of that sum, 7,800 or about 40% were located in Tokyo, providing a sound buyer base for ultra-luxury residences in the city. Additionally, neighbouring regions such as Hong Kong and China also house a large UHNW population, together totalling about 34,000. Appetite for ultra-luxury residences in Tokyo is also strong from these overseas buyers, and interest is likely to increase as Japan becomes more attractive amidst persistent global uncertainty.