Asking prices for used condominiums in Tokyo's six central wards declined for the fourth consecutive month. The decline was influenced by the BOJ's rate hikes and slower yen depreciation, while transaction prices in the three central wards turned higher and buyers for owner-occupation became more selective.
According to Tokyo Kantei's August data, asking prices for used condominiums in Tokyo's six central wards, calculated on a 70-square-meter basis, were ¥180.68 million, down 0.7% month on month and marking a fourth consecutive monthly decline. The 23 wards as a whole also recorded a decline for the third consecutive month, bringing the run of record highs to an end.
However, transaction prices in the three central wards rose 4.5% year on year, highlighting differences in the quality of individual properties. Rather than a broad-based decline, the market has entered a phase of selecting among individual properties.
Although the decline in prices is small, the tailwinds from low interest rates and overseas money have weakened amid higher rates and yen depreciation, and the purchasing power of dual-income high-earning couples is no longer sufficient to support rising property prices. Rents, however, remain firm, with rents in central Tokyo rising, potentially improving yields.