Tokyo Used Condo Prices Fall for the First Time in 28 Months
Tokyo’s used condominium market recorded its first monthly decline in more than two years in August 2026, according to data from real estate research firm Tokyo Kantei.
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The average price of a used condominium in Tokyo fell 0.2% from July to ¥112.74 million per 70 square metres. This marked the first month-on-month decline in 28 months.
The decline came after a prolonged period of rising prices and as weakness that had already appeared in Tokyo’s most expensive central areas began spreading more widely.
Central Tokyo Records Another Monthly Decline
Tokyo’s six central wards Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya saw a larger decline.
Average prices in these wards dropped 0.7% in August to ¥180.68 million per 70 square metres, marking the fourth consecutive monthly decline.
Across Tokyo’s 23 wards, prices fell 0.4% to ¥126.67 million, extending the recent downward movement beyond the most expensive central districts.
Higher Mortgage Costs Put Pressure on Buyers
Rising borrowing costs are emerging as an important factor behind the change in market conditions.
Japan’s interest rates have risen, increasing mortgage costs and putting pressure on housing affordability. Higher financing costs can reduce the amount buyers are willing or able to pay for properties.
The shift comes after a period of strong price growth in Tokyo, which had attracted both domestic and international investors.
More Properties Are Entering the Market
The recent price declines have also been accompanied by increased inventories.
Tokyo Kantei said some condominium owners have reduced prices after the earlier surge in values contributed to a rise in available properties. Some investors have also started selling in anticipation of tighter regulations on short-term property transactions.
This combination of higher supply and changing buyer demand has contributed to the recent price adjustments.
Prices Are Still Much Higher Than a Year Ago
Despite the monthly decline, Tokyo’s used condominium market remains significantly more expensive than it was a year earlier.
Average secondhand condo prices were 24.1% higher year on year across Tokyo in August, while prices across the capital’s 23 wards were 18.2% higher.
This means the latest decline represents a short-term monthly change rather than a return to the price levels seen before Tokyo’s recent property boom.
Analysts Watch for Further Price Adjustments
Tokyo Kantei senior principal researcher Masayuki Takahashi said price adjustments in central Tokyo were expected to continue toward the end of 2026, with similar movements potentially extending to surrounding areas.
The coming months will therefore be important for determining whether the August decline develops into a longer period of price adjustments or remains a relatively limited correction.
1. A 28-Month Price Rise Has Paused
The August decline ended a 28-month period in which Tokyo’s average used condominium prices had continued to rise on a month-to-month basis.
2. Central Wards Are Showing Earlier Weakness
Tokyo’s six central wards have already recorded four consecutive monthly declines, making them an important indicator of changing conditions in the wider market.
3. Mortgage Costs Are Becoming More Important
Higher interest rates are increasing borrowing costs and may affect housing demand as buyers reassess affordability.
Even after the August decline, used condominium prices remained substantially higher than a year earlier, showing that Tokyo’s property market is still at historically elevated levels.
Tokyo’s used condominium market recorded its first monthly price decline in 28 months in August 2026, with the average falling 0.2% to ¥112.74 million per 70 square metres.
The sharper decline in the six central wards and rising mortgage costs are drawing attention to a possible shift in Tokyo’s property market. However, prices remain considerably higher than a year earlier, making the coming months important for understanding the direction of the market.
