Houses worth 1 billion yen in Tokyo are "all being bought by people from Hong Kong and Taiwan," and local real estate agents are simply raising prices recklessly.

The depreciation of the Japanese yen, combined with political and economic risks, has led to a surge of funds from Hong Kong and Taiwan into Tokyo's luxury real estate, pushing up the price of new projects in Akasaka, Tokyo, to over 20 million yen per tsubo. However, property prices in the center of Taipei are still about 30% higher than those in Tokyo, and the price chase effect continues to push from Taiwan. (Background: The Taiwanese housing market is experiencing "sky-high prices and flat transactions," with bargaining starting at a 15% cut. Will prices drop again next year?) (Context: Wall Street prophets warn that nearly half of the baby boom generation cannot afford "retirement costs," and the mortgage wave is putting heavy pressure on the housing market.) In Akasaka, Tokyo, a new apartment with a price per tsubo exceeding 20 million yen has become a microcosm of the capital flow in Asia for 2025. As funds flee Hong Kong, Tokyo has become a safe haven. Since 2019, political uncertainty stemming from protests and the Hong Kong National Security Law has continued to ferment, shaking the prices of luxury properties in Hong Kong. According to a report from Bunshun Weekly, some owners of high-priced real estate in Hong Kong have been "cutting losses" in sales in recent years, while at the same time, the depreciation of the yen and living environment have made Tokyo's high-end residences more attractive to high-net-worth individuals. Real estate agents described recent transaction conditions to Bunshun: There’s a property in Akasaka priced at 1 billion yen, asking 20 million per tsubo! It's simply unbelievable! Who would buy a 20 million yen per tsubo house in Japan? But we sell them every day! Indeed, in the eyes of Japanese people, even young IT presidents would consider such exaggerated prices, as real estate is not perceived as a very popular investment option. High-priced properties are selling so well that when encountering investors from Taiwan and Hong Kong, even the Tokyo real estate agents, who usually follow business rules, can't help but raise the prices of the properties, making more money at the point of sale, "selling is good luck." Rise of Taiwanese Buyers While the outside world focuses on Hong Kong buyers, Taiwanese capital is actually entering the market quietly. Tokyo real estate agents have observed that "buyers around 1 billion yen are mostly Taiwanese or Hong Kong people," and the strong New Taiwan dollar in Asia has become a wind vane for high-net-worth Taiwanese customers purchasing real estate in Japan. Not only individual buyers are making moves, but the Taiwan-based Avatar Capital Partners (ACP) previously raised a fund of 15.2 billion yen, specifically targeting multi-family residential properties in prime Tokyo locations, attracting family offices and pension funds to participate. These actions indicate that Taiwanese investors are viewing Tokyo as a new pivot for asset allocation and rental income. For most Taiwanese, buying a home has traditionally been focused domestically, but high property prices and low rental yields have led them to turn overseas. After 2022, the number of Taiwanese real estate teams visiting Japan for inspections has surged, with almost monthly groups forming, and popular areas extending from central Tokyo all the way to Osaka and Fukuoka, forming a new norm of "Taiwanese buyer house-hunting teams." Tokyo vs. Taipei: A Price and Yield Comparison As of 2025, according to the latest data from Numbeo, the price per square foot in central Taipei is about NT$40,855 (approximately 29,000 yen), which is nearly 30% higher than Tokyo. Even moving to the outskirts of the city, Taipei’s property prices are still 35.7% higher than Tokyo. In terms of rental prices, a one-bedroom apartment in central Tokyo rents for about 161,000 yen (approximately NT$31,880), which is 35.4% higher than Taipei; a three-bedroom apartment rents even 36.6% higher. Additionally, with Japan's mortgage interest rate at only about 1.59%, the gap between rental yields and financing costs is a significant driver of buying pressure. If we zoom in on the cities often targeted by Taiwanese investors, the average price of newly built apartments in Tokyo has increased by about 13% in recent years, with the price growth in the central area approaching 29%. Although property prices in Taipei are high, the growth trend has slowed in recent years, and rental returns are under more pressure. This combination of "price inversion and positive rental yield" is elevating Tokyo's status in Taiwanese investment portfolios. Concerns about Tightening Policies and Vacant Homes Behind the luxury housing boom, risks of vacancy are also emerging. In the 23 wards of Tokyo, many high-priced apartments are bought as "investments or second homes," resulting in a low actual occupancy rate. The Chiyoda Ward has proposed a five-year reselling ban, restricting single buyers from purchasing multiple units, and is considering raising short-term capital gains taxes to prevent property prices from diverging from local income levels. Whether investors can turn a profit as expected if Japanese regulations tighten remains an uncertainty for the future. Related Reports: Housing prices are forcing builders! Documents reveal that building materials must "drop by 5-10%"; the real estate market is becoming increasingly difficult. Popular Science: What are RWA real-world assets? Credit, bonds, real estate... This article about "houses worth 1 billion yen in Tokyo are being bought by people from Hong Kong and Taiwan" was first published in BlockTempo, the most influential blockchain news media.