Tokyo Used Condo Prices Fall for First Time in 28 Months

Used condominium prices in Tokyo fell 0.2% in August to an average of ¥112.74 million, marking the first decline in 28 months. Data from Tokyo Kantei indicates the downturn is spreading from the city center to surrounding areas, with properties in the six central wards experiencing a 0.7% drop, their fourth consecutive monthly decline.

The price correction follows interest rate hikes by the Bank of Japan, which have increased mortgage costs for homebuyers. This shift comes as the Financial Services Agency strengthens oversight of real estate lending to address concerns that domestic and international investors pushed property prices beyond sustainable levels to seek capital gains.

Tokyo Kantei expects price adjustments for properties in central Tokyo to continue toward the end of the year, noting that similar movements will likely persist in surrounding areas.