High-end, Luxury Living in Tokyo’s Minato Ward
Speaking of luxury living in Tokyo, Minato is undeniably one of the renowned wards. Comparing the 3 central wards in Tokyo, which are Chiyoga, Chuo, and Minato, Aoyama, Azabu, and Shirokan in Minato have high-end residential areas comparable to Ichibancho in Chiyoda. The well-known Roppongi commercial areas are also as sophisticated as Ginza in Chuo.
Minato is the highest-income ward in Japan, with an average annual income of JPY12 million per capita. More than 10% of Minato’s total population is foreigners. There are not only a lot of large domestic and overseas corporate headquarters but also embassies and consulates of more than 80 countries.
Owning a property in Minato is regarded as a symbol of status. According to real estate transaction data of
the Ministry of Land, Infrastructure, Transport and Tourism, the property price in Minato has been ranked first for years. In 2020, its average price of existing properties reached about JPY72 million, of which the property in Roppongi was sold at JPY4.8 billion, the highest transaction price in the year. Moreover, the latest 2021 ranking of Japan’s residential land prices show the high-end residential area of Akasaka in Minato ranked first, with a land price of JPY4.84 million sqm.
We have interviewed our customers whose Minato properties are under our management to understand their reasons for buying Minato properties, and their views on the living environment, neighbourhood, and culture of Minato.
- Mr. A (Director of a multinational corporation, living in Beijing)
Property location: Aoyama Itchome
- Mrs. B (Self-employed, living in Shanghai)
Property location: Roppongi
- Miss C (Self-employed, living in Hong Kong)
Property location: Roppongi Itchome
Why did you want to buy a property in Minato?
Due to work, I have to travel back and forth from Tokyo to Beijing and sometimes stay in Tokyo for a few months. Therefore I came up with an idea to buy a property here for my stay. I chose Minato because it is so convenient and close to my company’s headquarters. The property price is not particularly expensive compared to Beijing’s.
Initially, Tokyo wasn’t our first choice. Back then we were considering purchasing a property in London. However, my husband and I got a chance to visit Tokyo and view the property we currently own. We loved it at first sight, especially the spectacular night view where the Tokyo tower was just in front of you. Besides, as it only takes 3 hours to fly from Shanghai to Tokyo, it is easier for my relatives and friends to visit.
My idea is to optimize my asset allocation. It doesn’t bother me if the property price goes up or not, as long as the value is maintained. So far the price has risen 15% since I bought it and it has been rented out recently. I’m satisfied with the rental yield.
Roppongi MidTown Light Show
What attracts you most about your property in Minato?
It only takes 7 minutes to walk to my office, passing by Roppongi MidTown on the way. It’s nice to have dinner and drinks with colleagues nearby after work. When my foreign customers come to Tokyo for business, I often have drinks with them in nearby bars where most of them are foreigner-friendly. On the weekends, friends and I like to have a casual walk from Roppongi to Aoyama and Omotesando since it’s not too far. It’s our small bliss to dig for desserts, stylish and vintage shops.
My husband loves it more than I do. Prior to the pandemic, whenever there was a long holiday, we came to stay for a few days. My husband is busy with his work, he said that just sitting on the sofa and staring at the scenery outside the French window helps him relieve the pressure. Every time I visit Tokyo, I have to shop a lot for my relatives and friends and it is convenient to go to Nakameguro, Daikanyama, or Ginza from Roppongi.
My property is close to Roppongi Itchome. I heard from my broker that there is a huge redevelopment project going on near Azabudai. The tallest residential tower together with luxury retail centers will be built there. I expect my property value will go up after the project completion.
Do you plan to buy more properties in Minato?
Not for the time being. I bought this property because of my work. Although I want to move to a bigger property, the price of newly built properties nearby has risen a lot. I will consider renting it out in the future.
Not at the moment, as we are still fond of our current property. We, for sure, will keep it for a long term.
I definitely love Minato more than other wards in Tokyo. I have been checking out properties in other areas of Minato, say Shibaura where properties are not as expensive as my current property and right next to JR Yamanote line station. I think it might be worthwhile to invest as well.
Nihgt View of Shibaura Minami Pier Park
Photographer: Takahiro’s Gadget Blog “Digicle”
WealthPark is a real estate technology company that provides online and offline asset management services for overseas investors with properties in major cities of Japan.
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