Tokyo resale condo prices record first monthly fall in 26 months
An accumulation of unsold high-end homes led sellers to cut asking prices, although the June average remained near May’s peak and well above last year.
- In June, average resale condominium prices in Tokyo's 23 wards experienced their first monthly decline in 26 months, ending a 25-month streak of increases.
- The average price for a 70-square-metre property fell by 0.8% from May.
- The price drop is attributed to a surplus of expensive units that failed to sell, leading owners to reduce their asking prices.
- Despite the monthly decrease, June's average price remains the second-highest on record and is 23.3% higher than the same month a year earlier.
Average resale condominium prices across Tokyo’s 23 special wards declined in June, bringing an end to 25 consecutive months of increases, Tokyo Kantei Co. reported on Thursday (July 23).
The average price of a 70-square-metre property fell 0.8% from May to 127.41 million yen.
The property research firm attributed the decrease to a build-up of expensive units that had failed to find buyers, leading sellers to reduce their prices.
Despite the month-on-month fall, the June average remained the second-highest on record, behind only the peak registered in May.
It was also 23.3% higher than in the same month a year earlier.
Tokyo Kantei expects the condominium market in central Tokyo to remain in a correction phase through the end of the year.
Prices moved in the opposite direction across the broader Tokyo metropolitan area, which includes the whole of Tokyo and the neighbouring prefectures of Kanagawa, Saitama and Chiba.
The regional average climbed 1.3% from May to a record 74.54 million yen.
A Tokyo Kantei official said: “Real demand remains firm, and prices are likely to continue rising moderately in reasonably priced areas.”
The official identified locations outside central Tokyo, along with Kanagawa, Saitama and Chiba, as markets where this trend was likely to continue.
[Copyright The Jiji Press, Ltd.]
