• Tokyo’s ultra-luxury residential market has seen prices grow rapidly over the past few years on the back of high demand and the sector’s strong fundamentals.
• On top of strong corporate performance, Tokyo’s prominence as a global tourist destination, increased interest from overseas capital, and societal stability have made the capital an attractive place to live in and store wealth.
• The number of ultra-high-net-worth individuals (UHNWIs)¹ in Japan, and of course the broader Asia Pacific region, is expected to continue growing, creating a larger pool of potential clientele for ultra-luxury residences, and consequently boosting demand.
• Ultra-luxury residences serve as a unique investment avenue especially for UHNWIs, both domestic and international.
• Despite the high price points of ultra-luxury residences, they could still be thought of as not excessively expensive, especially when compared to the price increments of other asset classes sought after globally.
• The supply of ultra-luxury residences is expected to remain suppressed going forward, abetted by the difficulty of procuring suitable land, and high construction costs.
• Japan has seen more wealthy inbound tourists that have unsated appetites for luxury products, and such properties in Tokyo could be potential pied-à-terre for them.

¹Defined as those with a net worth of over US$30 million.