Used apartment prices in central Tokyo fell slightly in March 2026, marking the second consecutive month of decline [6].
This downturn suggests a potential cooling of the luxury real estate market in Japan's capital. After years of aggressive growth, high price ceilings are making properties less accessible to a shrinking pool of eligible buyers.
According to data from Tokyo Kantei, a real estate research firm, prices in the six central wards — Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya — slipped month-on-month [1, 2]. This trend follows a decline in February 2026, when prices dropped by approximately 0.2% [1].
The average price for a used condominium in these six wards stood at 187.61 million yen in February 2026 [1]. Specific areas saw more significant shifts, with prices in Minato Ward dropping by 50 million yen [2].
Analysts said the decline is likely due to high price levels that have made it difficult to finalize contracts. Buyers are increasingly hesitant to enter the market at these peaks, a shift that comes after a period of steady growth [2, 3].
This represents the first time in about three years that prices have trended downward, with the previous decline occurring around 2023 [1]. The shift occurs alongside broader economic changes, including the Bank of Japan raising its policy interest rate to 0.75% [1].
“Used apartment prices in central Tokyo fell slightly in March 2026.”
The two-month decline in Tokyo's central wards indicates that the market may have reached a price ceiling where demand can no longer sustain growth. The combination of historically high valuations and the Bank of Japan's decision to raise interest rates to 0.75% increases the cost of borrowing, further squeezing the pool of buyers capable of purchasing high-end real estate.
