Exploring Japan's Most Luxurious Neighborhoods in Tokyo

Investing in Tokyo’s most luxurious neighborhoods can be daunting, especially for newer investors. But beyond that fear and uncertainty come potential financial rewards. These areas are considered premium due to their strategic locations, upscale amenities, and consistent demand from the wealthy class, thus making them an attractive investment for discerning investors. 

We’ll help you explore some of Tokyo’s topmost luxurious neighborhoods to get a gist of what each has to offer to you as a property investor in Japan.  

1. Minato

Minato houses numerous foreign embassies, international schools, and corporate headquarters. This particular area is particularly attractive to the affluent and expatriates as it is a melting pot of different cultures around the world. 

According to InvestAsian, the average price per square meter in Minato is approximately ¥2,000,000. This is due to the city’s prime location, high-end amenities, and excellent transportation infrastructure. Notably, 10% of Tokyo Stock Exchange CEOs have their residences in Minato, establishing its high status amongst other luxury neighborhoods.

(Photo Credit Iker Irueta)

2. Hiroo

Hosting numerous international schools, embassies, and upscale residences, Hiroo appeals to expatriates and wealthy locals for its international ambiance. Hiroo offers Western conveniences alongside Japanese traditions with stylish boutiques, serene streets, and vast parks. 

One of Hiroo’s notable landmarks is the Hiroo Garden Hills, which houses the most luxurious condominiums and rental apartments in the area. It offers premium amenities, which the majority of city neighborhoods do not have. Condo prices at Hiroo Garden Hills can range from approximately ¥228 million to over ¥500 million, depending on its floor level and size. 

(Photo Credit Tokyo Weekender)

3. Akasaka

Blending business and leisure, Akasaka is another neighborhood accommodating major corporations, luxury hotels and high-end residences. It caters to both business professionals and wealthy residents seeking a place that can attune to their dynamic lifestyle. 

Beyond the hustle of its business districts, Akasaka has quiet pockets of greenery, often near its luxury apartments. For an average condominium in Akasaka, you can expect to pay around ¥100 million. Price can vary according to the type and size of the unit. 

(Photo Credit TripAdvisor)

4. Azabu

Azabu is a peaceful neighborhood with a sense of exclusivity, making it a preferred choice for celebrities, diplomats, and other affluent personalities who seek security and privacy. This area is divided into four distinct districts:

• Moto-Azabu houses the high-rises with breathtaking cityscapes;
• Azabu-Juban has a lively shopping district with traditional stores and modern boutiques; 
• Minami-Azabu highlights the elegant residential homes; and
• Nishi-Azabu handles the nightlife of the neighborhood with its stylish bars and upscale restaurants. 

The penthouses and other high-end condominium complexes can cost over ¥5 billion with premium amenities like swimming pools and concierge services. 

(Photo Credit Japan Property)

5. Aoyama 

Aoyama stands as one of Tokyo’s most stylish neighborhoods, characterized by high-end boutiques,  popular cafes, and contemporary art galleries. It’s the destination for creatives and fashion enthusiasts alike. Although its commercial streets are vibrant and busy, its residential areas are tranquil and comfortable. 

Condo prices in Aoyama can cost from ¥50 million for the older lower-end units to over ¥800 million for the higher-end properties. The recent average price for newer condominium units in this area is topping ¥100 million.

(Photo Credit GO Tokyo)

6. Denenchofu

Denenchofu is considered an underrated luxury neighborhood within Tokyo that offers a suburban feel alongside its spacious residences characterized by tree-lined streets and luxurious gardens. This is an exclusive neighborhood favored by Tokyo’s most affluent and giant business magnates. 

What sets Denenchofu apart from the aforementioned neighborhoods is its single-family luxury homes with tennis courts and swimming pools, as compared to the high-rise condominiums and apartments. Additionally, it is a low-density neighborhood, hence its unmatched level of exclusivity. Houses in this area can cost as low as ¥25 million to as high as  ¥1.6 billion or more. 

(Photo Credit Housing Japan)

Explore the Investment Potential of Luxury Neighborhoods

There are several advantages to investing in these luxury neighborhoods of Tokyo. 

1. Consistent Demand. This contributes to the steady appreciation of the property’s value. 
2. Economic Resilience. Properties in luxury neighborhoods have shown resilience during economic fluctuations, holding a steady value. 
3. High Rental Yields. The expatriates and affluent locals residing in these neighborhoods provide investors consistent high yields.