Detached homes priced above 100 million yen gain popularity as Tokyo costs climb

TOKYO -- As real estate prices surge in Tokyo's urban centers, detached homes are regaining popularity among buyers seeking privacy and reduced noise concerns. With a newly built detached home in the city's 23 wards now averaging around 100 million yen, developers are ramping up production.

These detached homes, known as "oku-kodate," offer buyers roughly 100 square meters of land and living space for a relatively lower price compared to smaller, more central micro homes. The term "oku-kodate" combines "oku" (100 million yen) with "kodate" (detached house), contrasting it with the widely used label "oku-shon" for condo prices above 100 million yen.

In Tokyo's central five wards, even micro homes on smaller lots can reach over 100 million yen. However, oku-kodate typically refers to spec-built detached homes located a bit further from the nearest train station, providing buyers with spacious living areas while avoiding the high cost of prime locations.

The surge in demand is driven by energy-efficient home standards and the availability of detached homes at a lower price point compared to smaller condos. A 37-year-old medical device employee recently purchased a two-story, three-bedroom detached home for about 120 million yen, financing the majority with a 42-year mortgage. He sold his previous rented condominium, citing concerns about noise disturbance from his daughters.

At Home data shows the average price of newly built detached homes in Tokyo's 23 wards reached the 90 million yen mark in June and is projected to reach 100 million yen by 2027. Major homebuilders like Sekisui House and Daiwa House are expanding their focus on the oku-kodate segment to capitalize on the growing demand.