Tokyo condominium prices slip 0.2% in August, ending a two-year rise
Average condo values in Tokyo fell 0.2% in August to 112.74 million yen, marking the first decline in 28 months as higher mortgage rates dampen demand.
Tokyo Kantei’s latest data show that the average price of used condominiums in Japan’s capital decreased by 0.2% in August, reaching 112.74 million yen, the first fall in over two years. The downturn started in the six central wards, where prices slipped 0.7% for the fourth straight month, before extending to surrounding districts. Higher mortgage rates, a result of the central bank’s recent interest-rate hikes and signals of tighter credit, are weakening buyer sentiment.
The Financial Services Agency has announced plans to strengthen supervision of real-estate loans, citing worries that property values are being driven up by domestic and foreign investors. Senior principal researcher Masayuki Takahashi warned that price corrections in central Tokyo are likely to continue into the latter part of the year and spread to adjacent areas. The shift reflects broader pressures on Japan’s housing market as financing becomes more expensive.
Why it matters
Falling condo prices signal tightening credit and could affect housing affordability and investment in Japan’s largest city.
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