Used condominium prices in Tokyo fell month-on-month for the first time in approximately 2 years and 4 months. According to data released on the 24th by real estate research firm Tokyo Kantei, the average price in August (converted to 70 square meters) was ¥112.74 million (approximately $710,000), down 0.2% from the previous month. The price correction that has been underway in central Tokyo now appears to be spreading across the entire city.
By region, central Tokyo’s 6 wards—including Chiyoda, Minato, and Shibuya—fell 0.7% month-on-month to ¥180.68 million (approximately $1.1 million), marking a fourth consecutive monthly decline. Tokyo’s 23 wards also dropped 0.4% to ¥126.77 million (approximately $800,000), falling for a third straight month. Tokyo’s 23 wards had set record highs for 25 consecutive months through May, but the prolonged run-up in prices has left an increasing number of properties without buyers, prompting more sellers to cut asking prices.
While the declines remain modest, a Tokyo Kantei representative noted that “a full-fledged downturn could be on the horizon.” In addition to high-income dual-earner households finding it increasingly difficult to purchase, investors are reportedly stepping up selling activity amid expectations of tighter regulations on short-term flipping.
On a year-on-year basis, however, Tokyo overall is still up 24.1%, remaining at significantly elevated levels. Tokyo’s 23 wards are also up 18.2% year-on-year. Absolute price levels remain high, and the correction has only just begun.
Tokyo Metropolitan Area Hits Record High
The broader Tokyo Metropolitan Area (Tokyo and the three surrounding prefectures) saw its average price reach ¥76.06 million (approximately $480,000) in August, setting a new record high. Prices rose 0.8% month-on-month and surged 29.2% year-on-year. In contrast to the declines in central Tokyo, demand has remained resilient in relatively affordable areas such as Saitama City and Chiba City.
Tokyo Kantei expressed the view that “while the overheated central Tokyo market is in a correction phase, demand for used condominiums remains strong and underlying support persists.” The representative also noted regarding future price trends: “If pricing continues to make even used properties difficult to purchase, the pace of price increases outside Tokyo could also slow.”
Trends in Surrounding Prefectures
In major urban areas outside Tokyo, Aichi Prefecture rose 1.5% month-on-month to ¥24.77 million (approximately $160,000), while Osaka Prefecture edged up 0.1% to ¥44.43 million (approximately $280,000). Hyogo Prefecture slipped 0.1% to ¥26.47 million (approximately $170,000).
Tokyo Kantei calculates per-tsubo unit prices from listing prices of used condominiums and publishes average prices converted to a family-oriented 70 square meters.
Condominium prices in central Tokyo have risen sharply since 2024, driven by a shortage of new supply, soaring construction costs, and demand from overseas investors. The current pullback reflects a widening gap between listing prices and actual transaction prices, with inventory continuing to accumulate. Going forward, the key focus will be on how far the price cuts in central Tokyo spread to surrounding areas.
AloJapan.com