Tokyo used condominium market shows signs of price adjustment

The used condominium market in Tokyo is experiencing a shift toward a price adjustment phase, characterized by increasing inventory and a slowdown in sales. In Tokyo’s central three wards—Minato, Chiyoda, and Chuo—data indicates that new listing prices have begun to decline since late 2025, and actual transaction prices have also shown a slight downward trend.

Market analysis reveals a significant polarization based on price points. Properties priced below 50 million yen remain relatively stable due to consistent demand from end-users, as interest rate increases have a limited impact on this segment. In contrast, properties priced above 50 million yen are seeing a sharp increase in inventory and a corresponding drop in contract rates.

The luxury segment, particularly properties exceeding 200 million yen, is facing a notable decline in liquidity. These transactions, often driven by investment and international capital, are seeing contract rates fall to as low as 1% to 2% as market overheating subsides. Overall, the supply-demand balance in the Tokyo metropolitan area is shifting in favor of buyers, with longer listing durations and increased discount rates becoming more common.