Used condominium prices in central Tokyo's six wards, which include areas like Chiyoda, saw a 1.3% month-on-month decrease in June. This marks the second consecutive monthly decline in these central areas. According to data from Tokyo Kantei Co., the average price for previously occupied apartments in these wards was ¥185.12 million (approximately $1.13 million) in June.
Across Tokyo's 23 wards, the average asking price for a used condominium fell by 0.8% from May to ¥127.41 million (approximately $781,000) in June. This was the first month-on-month decline in 26 months for the broader Tokyo area. Despite the monthly drop, prices in the 23 wards were still up 23.3% compared to a year prior.
The decline in central Tokyo follows previous drops: a 0.2% decrease in March and a 0.2% decrease in February, according to Tokyo Kantei. These back-to-back declines in central Tokyo were the first in over three years, raising concerns that the property boom might be losing momentum. An official from Tokyo Kantei Co. suggested that prices in these central wards might continue to fall, even as prices in other parts of Tokyo remain elevated due to limited supply.
This trend aligns with earlier signs of a cooling market, as seen in January when average contract prices for used condos in popular bay-side neighborhoods like Toyosu and Kachidoki decreased for the first time in five months. Market sentiment is also being affected by policymakers' cautious stance on rampant investor spending, with the Bank of Japan monitoring real estate loans and local governments warning against quick property resales. There are also concerns about the Middle East conflict potentially increasing living costs and weakening consumer demand.
While central Tokyo experienced declines, the broader Greater Tokyo area, encompassing Tokyo and three neighboring prefectures, saw its average price climb 27.4% year-on-year to ¥74.54 million. Prices also rose in Osaka Prefecture by 22.1% to ¥43.96 million and in Hyogo Prefecture by 4.2% to ¥25.88 million. However, Aichi Prefecture recorded a 1.5% decrease to ¥24.16 million.
