Luxury Tokyo penthouse sells for over 9.5 billion yen in booming market

[TOKYO] A Tokyo penthouse developed by Swedish buyout firm EQT has sold for about 9.5 billion yen (S$86 million), shedding light on the cost of buying into the city’s booming high-end property market.

The four-bedroom apartment at Marq Omotesando One, a luxury low-rise development near the bustling shopping district of Harajuku, went for more than 50 million yen per tsubo, the highest on record in Japan by that measure, EQT said.

A tsubo is a Japanese unit of measurement that equates to 3.3 square metres, amounting to a sale price of about 9.5 billion yen for the 625-plus sq m property, according to Bloomberg calculations.

The Marq One penthouse stretches across the entire fourth floor of the property, with a spa room, three terraces and a private rooftop and pool. The condo is accessible via a private lift from the garage, and amenities include a 24-hour concierge service with a valet.

While the buyer was not disclosed, the price is a peek into the opaque world of luxury real estate sales in Japan. High-end properties in Tokyo have become more prevalent in recent years, as developers seek to tap rising demand from local and foreign buyers for higher returns. Sales are often limited to certain clients, with pricing kept under wraps.

Home prices in Tokyo have been on a broad upward trend, driven by rising construction costs and a limited supply of new buildings. Sales of luxury properties in popular developments such as Azabudai Hills’ Aman Residences and Mita Garden Hills have also skewed average prices higher.

EQT developed and finished building the 14-unit property in 2021, before selling the apartments in phases. One unit is still available for sale.

The per-tsubo price exceeds the 44 million yen that a penthouse at the Aman in Azabudai Hills reportedly went for last year. That apartment is still the most expensive sold in Japan – at a reported 30 billion yen.

Prices of prime properties – defined as in the top 5 per cent of the market – jumped more than 50 per cent in Tokyo in the five years to June 2024, a time when values fell in Hong Kong, New York and London, according to real estate consultancy Knight Frank.

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Tokyo still offers a relative bargain for high-end property, with US$1 million buying more than twice the amount of luxury living space than Hong Kong did in 2024, Knight Frank data showed. BLOOMBERG