Tokyo apartment prices hit a new record high. How expensive are apartments compared to Tallinn?

The average price of new apartments in the Tokyo metropolitan area surpassed 100 million yen (about 539,000 euros) for the first time in the first half of 2026, The Japan Times reported. Prices rose 13.1% year-on-year to 101.35 million yen (about 546,000 euros), covering Tokyo and three neighboring prefectures: Saitama, Kanagawa and Chiba.

The average price in Tokyo's 23 wards rose 9.1% to a record 142.49 million yen (about 767,000 euros), marking the fourth consecutive year that prices have topped 100 million yen from January to June.

Rising construction costs and a shortage of land in Tokyo's 23 wards have led to an increase in the supply of new apartments in areas around central Tokyo, making these locations more popular. Tadashi Matsuda, a researcher at the Real Estate Economic Institute, said that even if prices fall slightly in the fall, they are likely to remain close to 100 million yen in the Tokyo metropolitan area.

Supply declines

In the first half of the year, the supply of apartment units in the area fell 0.8% year-on-year to 7,989 units, the second lowest level on record. It was the third consecutive year that first-half supply fell below 10,000 units.

The article in The Japan Times did not specify how large new apartments were included in the statistics. Apartment prices in the Tokyo metropolitan area currently range from about 1.2 million yen to 2.1 million yen per square meter (6,452 to 11,292 euros) for new and second-hand units, depending on location and whether the apartment is new or existing.

According to the latest market surveys, the average price per square meter for new apartments in Tokyo’s 23 wards has reached around 1.7–2.1 million yen per m² (€9,140–€11,292), based on statistics for new projects in central Tokyo. One survey from 2026 estimates that new apartments in the city center regularly sell for around 1.7 million yen/m², meaning that a 70 m² apartment could cost 120 million yen (€645,240), but there are also offers almost twice as expensive.

Apartments in the Tokyo metropolitan area are on average small. Family apartments can range from 50–70 square meters, which is a large living space by Tokyo standards. For smaller apartments, designed for singles or couples, 20–40 square meters are also common, while micro and shoebox-style living spaces are even less than 20 square meters. And there are a lot of such small apartments in Tokyo.

Comparison with Tallinn City Center

Since apartments in the Tokyo metropolitan area are on average significantly smaller than a typical new development apartment in Tallinn City Center, it is difficult to make an exact comparison of apartment and square meter prices, but some idea can be made based on various real estate sources.

Central Tokyo is often understood as 23 areas covering approximately 627 km² and home to nearly 9.8 million people. This density explains why average apartments are smaller there and why many one- and two-room apartments in new developments in the city center often fall between 15 and 50 m².

One source notes that in Tokyo's 23 areas, households had an average of approximately 19.1 m² of living space per person.

According to statistics from Tallinn City Center portals, the average apartment is approximately 65–66 m², which means that the difference in total price is not only due to the area, but primarily to the difference in the price level per square meter. Thus, a Tokyo buyer pays a much higher price even for a smaller living space, especially in new city center projects, where a 70 m² apartment can cost around 120 million yen (approx. €645,000) or more.

Based on the asking prices for apartments in Tallinn City Center, the average apartment price is around 280,000–290,000 euros and the average price per square meter is around 4,000–4,500 euros, depending on the apartment type. The asking prices are usually higher than the actual transaction price. In Tallinn, the difference is around 20%, which is why it is necessary to distinguish between average advertisement prices and average transaction prices.

According to the Kinnisvara24 portal, the average selling price of a city centre apartment is approximately 281,000–290,000 euros (average apartment 65–66 m²). However, luxury new developments and Old Town properties push the upper price much higher.

According to the aggregated data of the Estonian Spatial Planning Board and Price Inquiry, the median price of apartments in Tallinn City Centre is approximately 4,400 €/m², with the price range ranging from 2,800–7,500 €/m² depending on location, building type and condition.