Tokyo secondhand condo prices fall for first time in 28 months
Inventories rose after a surge in condominium prices, while some investors began selling ahead of anticipated tighter rules on short-term transactions.
- In August, the average price of a secondhand condominium in Tokyo fell 0.2%, marking the first month-on-month decline in 28 months.
- The price drop was more pronounced in Tokyo's six central wards, where the average fell by 0.7%.
- Despite the monthly decrease, prices remained 24.1% higher than they were in the previous year.
- The fall is attributed to higher inventories and investors selling in anticipation of tighter regulations, with an official suggesting prices may enter a downtrend.
August brought Tokyo’s first month-on-month fall in average existing condominium prices in 28 months, with the figure slipping 0.2% to 112.74 million yen per 70 square metres.
Real estate research firm Tokyo Kantei Co. reported the figures on Thursday (September 24).
Even after the monthly retreat, prices remained higher than a year earlier.
The average for secondhand condominiums across Tokyo was up 24.1% year on year, while the 23 wards recorded an 18.2% increase.
The decline was more pronounced in the capital’s six central wards of Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya, where the average fell 0.7% to 180.68 million yen.
Across all 23 wards, it slipped 0.4% to 126.67 million yen.
The month-on-month reductions were modest, but some condominiums were marked down after the earlier surge in prices contributed to higher inventories.
Tokyo Kantei also reported that some investors had begun selling condominiums in anticipation of tighter rules on short-term transactions.
An official at the firm said prices “may enter a full-scale downtrend”.
[Copyright The Jiji Press, Ltd.]
