Summary
The news that Tokyo's used condominium prices fell for the first time in 28 months came as no small shock to market professionals, who have grown accustomed to steady gains in recent years. Tokyo Kantei being named as an index provider was likely because it was in a position to back up this turning point with hard numbers. After a long period in which rising values were taken for granted, the sentiment that “the tide has finally turned” is spreading. As the mood in the used market shifts, attention naturally focuses on how new and for-sale housing developments will respond.
Details
What is interesting is that the announcements of falling prices were followed almost immediately by a string of new products and large projects from developers. Mitsui Fudosan Residential opened preview events for “Park Homes Shonan Chigasaki,” continuing to tap into demand for for-sale housing. Its parent company, Mitsui Fudosan, showed a move on a different scale: reports that construction has begun on the redevelopment of the British Library in London highlight how it is steadily pursuing large overseas investments, seemingly unfazed by domestic price adjustments. Panasonic Homes also launched a new detached home product on October 2, adding a fresh option for both custom-built and for-sale homes. Nomura Real Estate announced that deliveries and handovers of “Proud City Kunitachi” would begin on September 24, further building its track record in redevelopment projects. Its affiliate, Nomura Real Estate Solutions, relocated its corporate brokerage hub, underscoring a push to strengthen its corporate real estate (CRE) proposal capabilities. Mitsubishi Estate has been staging events such as the SDGs Film Festival and the E&J Festival in the Marunouchi area in succession, sticking to its own approach of maintaining and enhancing area value. Meanwhile, the two major search platforms, SUUMO and HOME'S, remain the entry point for consumers considering a move, whether prices rise or fall, and continue to maintain a steady presence. Though smaller in scale, Life Design Kabaya's launch of a new CLT hybrid construction product on October 1 is also worth noting. As demand grows for wooden, environmentally conscious homes, it is a move to showcase proprietary technology in the face of larger rivals.
- 1The news that Tokyo's used condominium prices fell for the first time in 28 months came as no small shock to market professionals, who have grown accustomed to steady gains in recent years.
- 2Panasonic Homes also launched a new detached home product on October 2, adding a fresh option for both custom-built and for-sale homes.
- 3Nomura Real Estate announced that deliveries and handovers of “Proud City Kunitachi” would begin on September 24, further building its track record in redevelopment projects.
- 4Though smaller in scale, Life Design Kabaya's launch of a new CLT hybrid construction product on October 1 is also worth noting.
- 5Tokyo Kantei being named as an index provider was likely because it was in a position to back up this turning point with hard numbers.
Conclusion
Even as signs of a “correction phase” appear in used property prices, supply-side activity shows no sign of slowing. If anything, developers seem eager to make their presence felt with new products and large projects precisely now, as the market shifts. Will the easing of prices lead buyers to adopt a wait-and-see stance, or will the appeal of new and for-sale homes revive demand? The coming months are likely to see a contest between changes in the numbers and the offensive moves on the ground.