Existing condominium prices in central Tokyo declined for a fourth straight month in August, with the average asking price across the six core wards dropping 0.7% from July to 180.7 million yen per 70 square meters, Nikkei Asia reported Friday, citing Tokyo Kantei data.
The cooling trend follows tighter visa rules for foreign entrepreneurs and rising borrowing costs, which have dampened investor and overseas buying activity, the news agency said.
A Tokyo Kantei researcher said a market crash is unlikely, but no recovery signs are visible either, the publication said.
He expects the correction to persist into the first half of 2027 as owners lower once-inflated asking prices and release previously withheld properties, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)