Over sixty percent of surveyed homeowners in Greater Tokyo sold with capital gains

The Real Estate Distribution and Management Association of Japan (FRK) announced on October 30th the results of its 2025 Consumer Trends Survey on Real Estate Transactions.

Conducted annually since 1991 to track home-buying behavior among families, this marks the 30th edition of the survey.

Photo by George Kedenburg III on Unsplash

The study targeted households in the Greater Tokyo Area (Tokyo, Kanagawa, Saitama, and Chiba prefectures) that received delivery of purchased homes between April 2024 and March 2025, collecting 1,169 valid responses.

Average Purchase Prices According to Survey Results

The average home purchase price across all property types was ¥55.02 million.

By property type:

• New single-family home: ¥57.07 million 

• New condominium: ¥68.77 million 

• Existing single-family home: ¥48.73 million 

• Existing condominium: ¥54.62 million 

Rising Funds from Home Sales and Parental Gifts

Among new homebuyers, proceeds from the sale of their previous residence averaged ¥53.08 million, up ¥16.24 million from the previous year.

The average amount received as a financial gift from parents also increased sharply to ¥12.06 million, more than ¥4 million higher than last year.

Rising property prices are driving up funding needs for home purchases, the association noted. 

For buyers of existing homes, funds from previous property sales averaged ¥33.76 million, up about ¥1.5 million year-on-year.

61 Percent of Households Report Gains on Sale

Of the 410 households that moved from a previously owned home to a new one, 70% (287 households) sold their former residence.

Among the 246 households that disclosed both purchase and sale prices, 61.0% recorded a profit on the sale - the first time the ratio exceeded 60%, up 1.3 points from the previous year.

Meanwhile, 34.1% reported a loss, also up 1.3 points.

The average gain among sellers rose to ¥6.27 million, up from ¥4.26 million a year earlier.

By profit range:

• ¥10-20 million: 20.3% (up from 14.1%) 

• Up to ¥5 million, ¥20–30 million, and over ¥30 million: each 10.2%

Overall, 40% of households reported gains exceeding ¥10 million.

Strong Gains for Properties Under 25 Years Old

Homes built within the past 25 years generally yielded resale gains.

• 5-10 years old: ¥20.99 million profit (previous year: ¥14.32 million)

• 10-15 years old: ¥21.88 million profit (previous year: ¥7.06 million)

In contrast, properties over 25 years old showed an average loss of ¥4.74 million (compared to previous year: ¥2.71 million loss). 

Mortgage Tax Deduction Usage Declines for New Homes

Overall, 77.0% of respondents used or planned to use the housing loan tax deduction. The ratio stood at 75.6% for new homes and 77.0% for existing homes.

While last year’s survey showed an incentive utilization rate above 90% for new homes, the latest results suggest a decline due to an increase in purchases of smaller units under 40 square meters, which fall outside the tax incentive’s eligibility.

Source:

R.E. Port News (Japanese only)