Core Viewpoint - Tokyo's real estate market is experiencing significant price increases, driven by high demand from both local and foreign buyers, with the average residential land price rising 8.1% in 2025, three times the national average increase of 2.7% [3][4]. Group 1: Real Estate Price Trends - The average price of new homes in Tokyo's 23 wards for the fiscal year 2024 is projected to be 116.32 million yen (approximately 5.8 million RMB), reflecting an 11% increase from the previous year [4]. - The average land price in Tokyo has been rising for four consecutive years, reaching the highest growth rate since 2010 [3]. Group 2: Foreign Investment Impact - Foreign buyers account for 20-40% of new home purchases in prime areas like Chiyoda, Minato, and Shibuya, with this percentage increasing over time [4][6]. - The attractiveness of Tokyo's real estate is partly due to its international reputation and relatively lower prices compared to major cities like Hong Kong and New York [4]. Group 3: Population Dynamics - Future population growth in Japan is expected to be concentrated in Tokyo, with projections indicating that only Tokyo will see an increase by 2050, while other regions like Aichi and Osaka are expected to decline significantly [9]. - The influx of population into Tokyo is contributing to sustained demand for housing, which in turn supports rising prices [9]. Group 4: Regional Price Disparities - Significant price increases are also observed in suburban areas around Tokyo, with notable rises of 26% in Adachi and 24.7% in Nakano near major train stations [8]. - The disparity in real estate prices between Tokyo and other regions is likely to widen due to rising construction costs and labor shortages, making redevelopment in rural areas more challenging [8].