Tokyo’s property market slowing down?

November 10, 2007
By Ken Worsley

We suspected that most recent Tankan data, combined with a decreased rate of rent rising in Tokyo (though it’s still rising), might be signs of a slowdown in the city’s property market. The Nikkei has confirmed something along those lines. A survey released Friday by the Ministry of Land, Infrastructure and Transport tells us that in September:

Land investments in Tokyo’s 23 wards slowed compared with six months earlier, dropping for the first time in five years…The land transaction diffusion index — the percentage of firms that said land deals were bustling minus those citing sluggishness — deteriorated in Tokyo’s 23 wards for the first time in five years.

Any thoughts on when we’ll start seeing true signs that the cycle is over?

Filed Under Real Estate