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due to the violent fluctuations in the japanese stock market, investors tend to seek more stable physical assets, coupled with the downward trend of residential buildings for sale in the market, tokyo housing prices have experienced the largest increase in 17 years.

on september 24, data released by tokyo kantei, a japanese real estate research company, showed that:the average sales price of second-hand residential buildings in tokyo's 23 wards in august 2024 increased by 2.6% month-on-month to 77.5 million yen (approximately rmb 3.79 million), the increase reached a new high since october 2007, when japanese real estate was experiencing a so-called "mini-bubble" period.

and in tokyosix core areas(chiyoda, chuo, minato, shinjuku, bunkyo, shibuya),prices rose by 3.9% to approximately 128 million yen, rising for 19 consecutive months and exceeding 100 million yen for the third consecutive month., the biggest gain since december 2009 when the market began to recover from the lehman crisis.

takeshi ide, a senior researcher at kantei in tokyo, believes, “this was affected by the sharp fluctuations in stock prices in august.”. the demand from overseas investors and wealthy people has further strengthened.

at the same time,the gradual reduction in the number of second-hand housing units in circulation also supports this market., in tokyo's 23 wards, there were 2,519 new listings in august. as of august, there were 12,252 units in circulation, down 19% from the recent peak in february.

but some analysts also suggested, "tokyo house prices are expected to bear the impact of the bank of japan's interest rate hike to a large extent."tokyo's real estate market has been buoyant in recent years, recovering from a post-bubble slump thanks to low interest rates, low supply and an increase in wealthy households.

at present, the real estate market's response to japan's interest rate hike in july does not seem to be particularly large, but has shown a certain degree of resilience. the japanese brokerage company stated that currently “no customer has stopped considering buying a home because of rising interest rates”。

according to industry experts cited by bloomberg: “tokyo residential real estate prices are likely to remain stable after the bank of japan raises interest rates, but may fall in some areas. "

takeshi ide, senior principal researcher at real estate data and consulting firm tokyo kanto, cautioned:

"if interest rates continue to rise, people may become more cautious about purchasing rental properties."