The study also revealed that industry experts considered Tokyo to offer the second lowest (or safest) rating in terms of overall risk. Tokyo, where population density is high and space at a premium, has long been characterised by a tight inventory supply and low vacancy rates, and although frequently hit by economic problems in other markets, its real estate industry boasts an extremely high quality product range.

Offices have been a particularly sought-after aspect of Tokyo's property market - the average advertised monthly rent for offices in Tokyo shot up 5,600 yen (US$52), or roughly 20 per cent on the year, to 31,750 yen (US$296) per 3.3 square metres at the beginning of last year.

Property values are tumbling around the globe but in Asia the markets with the strongest economies and highest levels of liquidity such Japan's will be most attractive to investors in the coming 12 months. However, the global financial slowdown is beginning to bite and there are reports of tumbling unit sales. However, the picture is somewhat mixed and the real estate investor exodus from developing markets across Asia throws Tokyo's faith thus far into a more positive light. Tokyo's property market is undoubtedly in a weaker position to where it was at the start of last year, but it is stronger when set against other global financial centres and neighbouring Asian cities.

One of the key issues still facing the market is that of financing, the issuance of which can be difficult. With the sub-prime mortgage crisis in the US reverberating around the world, it is unlikely that credit will be issued by Japanese banks for Tokyo real estate purchases any more readily in the coming years.

Purchasing a real estate in Japan requires a number of one-off payments. The gross amount of these costs generally comes to around 6 to 8 per cent of the unit purchase price.

Purchasing a real estate in Japan requires a number of one-time payments. The gross amount of such costs usually ranges 6 to 8 percent of a purchasing price. From start to finish the process of buying a property can be over in four to five weeks.

Condos in Tokyo
With space at a premium condominium units have been the bread and butter of Tokyo's real estate industry for decades. They occupy such a significant share of the market that they act as an indicator as to how the property market is doing in general. Unfortunately, Tokyo's condo sales are showing signs that the global financial slowdown is taking a heavy toll. The number of condominium units bought in the greater Tokyo area dropped by some 43.6 per cent on the year to 3,868 in November 2008. To make matters worse, unlike other real estate markets were a drop in demand has triggered price reductions, a rise in the cost of both land and construction saw prices actually increase in Tokyo during the same period. The figures, released by the Real Estate Economic Institute showed that November was the third month in a row that fewer condos were sold than a year earlier. It was also the first in 16 years that the November figure came in below 4,000. More on buying condos in Tokyo.

Houses and land in Tokyo
Being the most heavily populated metropolitan area in the world means that land is extremely scarce in Tokyo. Naturally, this has led to massive prices that seem to be perpetually on the rise. Tokyo has seen annual rises of 30-40 per cent in land prices, which once bought tend to be quickly converted into condo or office towers. Many property analysts argue that the prices have been rising too rapidly and are reaching unsustainable levels. This view however, fails to take into consideration the fact that land property prices in Tokyo are still only at 50 per cent of what they were in the 1980s before they went into decline. More on buying houses and land in Tokyo.

Top tips for Tokyo property
Guide to buying condos in Tokyo
Guide to buying houses and land in Tokyo

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