Posh penthouses in Japan to set new record prices from 2030

Prices could be as high as JPY100 million per tsubo.

According to a Savills report, the successful launches of multiple developments in the past few years have brought the ultraluxury residential sector into the limelight, with many players appearing keen on venturing into this relatively unexplored market.

“Japan’s economic fundamentals, unique culture, and high levels of safety have made it an appealing place to live in and store wealth, attracting more UHNWIs, who are expected to continue growing in number,” the report said.

Here’s more from Savills:

While interest is high in the sector, even most major developers have limited experience in it, and may find it difficult to break into. Land that befits ultra-luxury residences has become difficult to procure, and elevated construction costs have made it challenging to plan luxury projects.

In addition, day-to-day operations will also remain a challenge as requirements are extremely stringent. Barriers into the ultra-luxury sector will remain high, and supply is therefore expected to be very limited for the time being, which should contribute to further capital growth or at least the stability of value of such assets.

For the last few years, there have been several land transactions in prime areas, some of which look promising for the development of ultra-luxury residences. On these sites, certain penthouses might set new record prices - JPY100 million per tsubo - towards 2030 or later.