2024 Tokyo apartment prices decline as market stabilizes.

In 2024, Tokyo's condo prices took a hit for the first time in six years, dropping by 3.5% to ¥78 million ($498,000) after a wild 30% rise last year. The Real Estate Economic Institute noted that this decline follows a peak from the luxury condos flooding the market. But don’t get it twisted—analysts say this dip won’t derail the long-term trend of rising prices driven by low supply and increasing costs. Tetsuya Kaneko from Savills Japan says, “This temporary dip isn’t a peak.”

While the average prices in central Tokyo fell 2.6% to ¥112 million, new units for sale nosedived by 14.4%, hitting a record low. Now, with the Bank of Japan expected to raise interest rates, experts believe the impact on the housing market will be minimal due to fierce competition among banks keeping mortgage costs low. Mari Kumagai from Cushman & Wakefield put it perfectly, saying, “An interest-rate increase would be seen as negative, but its magnitude is offset by the competition.”

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