Japanese Housing Market Overview Before-/After- Covid

Population Movement in the Tokyo Area in 2021 - Residential area preferences changed significantly due to Covid impact.  The 23 wards of Tokyo were particularly significant in terms of population movement.  Specifically, there was an excess inflow of 64,000 people in 2019 before-Covid, but an excess outflow of -21,000 people in 2021, who were moving outside the 23 wards of Tokyo.

One of the reasons for this is the change in working styles of office workers in central Tokyo. Before the Covid, for the single and dual-earner households, the convenience of living and transportation accessibility to workplaces was the important factor in choosing a place to live.

However, with the spread of teleworking in the aftermath of the Corona disaster, commuting time restrictions were lowered and the choice of residential area expanded, leading to a growing needs for larger units with good work space and for suburban areas with a rich prior environment for raising children and pursuing hobbies.  As a result, the population inflow from the 23 wards of Tokyo to suburban areas within 1-hour train commute from central Tokyo has expanded.

The Japanese housing market has become increasingly polarized into two types of housing: suburban housing for middle-income earners, and luxury condominiums in central Tokyo for the high net worths.