The demand for larger living spaces has grown as white-collar workers spend more time at home
According to a recent report by Tokyo Kantei, the price growth of apartments over 70 square metres in Tokyo’s 23 wards surpassed that of smaller apartments, reported Japan Property Central.
The report published last month investigated the relationship between apartment sizes and prices, to identify if there have been any significant shifts since the arrival of the pandemic.
The first quarter of 2019 was used as the base year, and with that, the report revealed that the price index for apartments over 70 square metres reached 127.4 as of Q3 2021.
In other words, apartment prices in that size range had increased by 27.4 percent since Q1 2019.
On the other hand, apartments under 30 square metres recorded a price index in Q3 2021 at just 103.6, the poorest performer of the four size ranges.
When the pandemic started, Tokyo saw a huge dip in the number of new residents that would typically move to the city for new jobs and schooling.
Hence, the demand for smaller apartments also saw a steep decrease.
However, as white-collar workers have been spending more time at home, the demand for larger apartments has exploded.
Such occupants are still residing in Tokyo’s 23 wards as few companies allow staff to be fully remote, and suburban regions may not offer the same conveniences, schooling, as well as entertainment that urban areas offer.
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