Tokyo's residential property market, which had previously experienced strong growth, is now showing signs of cooling. This shift is attributed to inflationary pressures that are squeezing consumer budgets and to higher interest rates, which have made mortgages more expensive for buyers [1]. In recent years, some property resale companies in Tokyo were able to purchase newly built or nearly new condominiums and resell them within a year for up to double the original price, indicating a previously hot market [1]. However, the current environment has led to a significant increase in the inventory of unsold properties, which has now reached the highest level in decades [1]. The combination of rising costs and increased supply suggests a notable slowdown in market activity.
CONCLUSION
The Tokyo condominium market is experiencing a marked slowdown due to inflation and rising interest rates, resulting in higher mortgage costs and a surge in unsold inventory. This shift signals a cooling period for what was once a highly active market, with potential implications for property values and investor sentiment.