Wealthy purchasers benefiting from a combination of record low borrowing costs and higher share prices on the local exchanges have pushed property prices beyond the reach of many ordinary Japanese.
Data from the Real Estate Economic Institute show that while the average price of a Tokyo apartment rose by 9.1% last year to a 24-year high, offerings were down nearly 10%. Deals involving properties priced at or above ¥100m soared, rising by 86%, while those below ¥50m dropped by 18%.
Prices could come under pressure this year, however, as falling stock markets and weakening sentiment have an impact both on developers and on lenders.
