Ready to shine: Tokyo’s housing market is poised to shine brightly again
While Tokyo shares many of the same features as cities such as London and New York City, joining them as one of the world’s most cosmopolitan and internationally important cities, it has not emerged as an international residential destination in quite the same way as those cities. But Tokyo’s residential sector is about to do so, and in a big way.
The Tokyo housing market is at the beginning of a multi-year recovery. Economic fundamentals are only just beginning to rebound, and there is a lot more traction to come. Optimism is rife, business and consumer appetite is strengthening, and reforms to supplement growth connect this virtuous cycle. In comparison to the rather short-lived housing market recovery from 2004 to 2006 — which was driven by shallow, suppressed demand following two decades of declining prices post–asset bubble burst — the recent pick-up in values reflects a confluence of more broadly-based and sustainable drivers.