Following the Bank of Japan’s rate hike, application data for “Flat 35” in FY2023 and FY2025 was compared across Tokyo and the three surrounding prefectures. Surging property prices and rising construction costs are thought to have contributed to the expansion of the areas under consideration for purchase.
According to data analysis by SBI ARUHI Corporation, which provides mortgage loans secured by real estate and other housing finance products, overall property prices rose significantly in FY2025, after the rate hike, compared with FY2023, before the rate hike. The increase in Tokyo’s 23 wards was particularly notable. Stronger demand for proximity between home and work and for asset value, together with the wider adoption of joint-borrower loans and long-term mortgages, is supporting access to higher-priced properties. Commute times are also trending upward, increasing by approximately 43 minutes on average across Tokyo and the three surrounding prefectures and by approximately 38 minutes in Tokyo’s 23 wards.
As household concerns about protecting finances are said to be growing, borrowing amounts and down payments are increasing. In FY2025, the average borrowing amount was approximately ¥40.7 million, up approximately ¥3.2 million from the previous year, while the average down payment was approximately ¥10.5 million, up approximately ¥1.7 million from the previous year. Both reached their highest levels on record. Against the backdrop of rising interest rates, interest in “Flat 35,” which offers a fixed rate for the entire loan term, is growing, while the number of borrowers selecting equal principal repayment increased approximately 2.7-fold.