Tokyo 23-ward used condo prices fall for fourth straight month in September
In short
Tokyo Kantei said the average asking price of used condos in Tokyo's 23 wards fell 0.4% in September to 126.29 million yen per 70 square metres, the fourth monthly decline in a row. The number of wards with lower prices rose to 15 from 13 in August, while prices in the three surrounding prefectures kept rising.
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Tokyo Kantei, a property research firm, said on 22 October that the average asking price of used condos in Tokyo's 23 wards in September, converted to 70 square metres, was 126.29 million yen. That was 0.4% lower than in the previous month and the fourth consecutive monthly decline. [ 1 , 2 , 3 ]
Asahi Shimbun reported that the number of wards where prices fell from the previous month rose from 13 in August to 15. In the six central wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average was 177.86 million yen, down 1.6%, and prices fell in every one of them. TBS NEWS DIG put the same central-ward figure at 177.86 million yen and said it was the fifth consecutive monthly fall. [ 1 , 2 ]
In the 11 wards of the north and east, including Itabashi and Taito, the average was 85.43 million yen, about the same as the previous month. In the six wards of the south and southwest, including Shinagawa and Meguro, it was 109.63 million yen, up 0.7%. The inventory indicator, the number of units in circulation, rose in each area. [ 1 ]
Masayuki Takahashi, a senior researcher at Tokyo Kantei, cited rising interest rates and higher prices as one reason the adjustment is spreading from the centre to the whole of the 23 wards. He said buyers who cross into the three surrounding prefectures gain room in their mortgage repayments, and that more people want to preserve their living margin while prices keep rising. He forecast that downward pressure on prices will continue. An expert quoted by Asahi said the market is becoming one that favours buyers the longer they wait. [ 1 ]
TBS NEWS DIG quoted the research firm as saying that the rise in unsold properties is causing price adjustments that are gradually spreading from the centre to surrounding areas. [ 2 ]
The three surrounding prefectures continued to rise. Asahi gave averages of 45.12 million yen in Kanagawa (up 2.5%), 33.46 million yen in Saitama (up 0.5%) and 31.30 million yen in Chiba (up 2.4%). TBS NEWS DIG said the average for Tokyo and the three prefectures combined rose for a 26th straight month, to 77.73 million yen, which is 29.2% higher than a year earlier. [ 1 , 2 ]
Why it matters
An analyst quoted by Asahi Shimbun said the market is becoming one that favours buyers the longer they wait. The outlets attribute the price adjustment to rising interest rates and higher living costs, and the figures show buyers shifting toward surrounding prefectures.
Key facts
- Property research firm Tokyo Kantei said on 22 October that the September average asking price of used condos in Tokyo's 23 wards, converted to 70 square metres, was 126.29 million yen, down 0.4% from the previous month. [ 1 , 2 ]
- It was the fourth consecutive monthly decline for the 23 wards. [ 1 , 2 , 3 ]
- The number of wards where prices fell rose from 13 in August to 15. [ 1 ]
- In the six central wards the average was 177.86 million yen, down 1.6%, and prices fell in every one of the six. [ 1 ]
- In Kanagawa the average was 45.12 million yen (up 2.5%), in Saitama 33.46 million yen (up 0.5%) and in Chiba 31.30 million yen (up 2.4%). [ 1 ]
- The number of units in circulation, which indicates market inventory, rose in each area. [ 1 ]
Confirmed by several sources
- The September average used condo price in Tokyo's 23 wards fell 0.4% from the previous month to 126.29 million yen per 70 square metres, the fourth consecutive monthly fall, according to Tokyo Kantei. [ 1 , 2 ]
- The average in the six central wards, including Chiyoda, was 177.86 million yen. [ 1 , 2 ]
Still unclear
- How long the central six wards have been falling. TBS NEWS DIG says the six central wards fell for a fifth straight month; the Asahi Shimbun text says only that all six fell from the previous month.
- Whether downward pressure on prices will continue. Only Asahi Shimbun reports this, as a forecast by Tokyo Kantei's Masayuki Takahashi (高橋雅之).
- Details of the Nishi-Nippon Shimbun report. Only its headline was available, with no article text or summary.