Tokyo Chiyoda Ward steps up push for five-year new condo resale restrictions
Tokyo's Chiyoda Ward has taken a more direct approach to curbing speculative new condo purchases, asking developers of a planned residential project to introduce contractual restrictions on resales for five years after handover.
The October 27 request marks a shift from the ward's July 2025 appeal to the Real Estate Companies Association of Japan. Rather than seeking cooperation through an industry body, the ward is now approaching developers involved in an individual project.
Chiyoda ward evening atmosphere photo by Fumiaki Hayashi on Unsplash
The request is not legally binding and does not establish a general resale ban across Chiyoda Ward.
A More Targeted Approach to Resale Restrictions
The ward is targeting a planned development that uses urban planning provisions allowing benefits such as increased permitted floor area. It wants developers to include clauses restricting resale for five years in principle and prohibiting multiple-unit purchases under the same name within a building.
The approach links anti-speculation measures to projects benefiting from special development provisions, rather than applying restrictions to all new condo transactions within the ward.
Existing voluntary industry measures are narrower. The Real Estate Companies Association of Japan has asked member firms to restrict resale activity before handover and limit multiple-unit purchases.
These measures stop short of Chiyoda Ward's requested five-year restriction after handover, representing a more limited industry response.
Developers have raised practical concerns to the ward’s request. Mitsui Fudosan acknowledged the importance of discouraging speculative resales but cautioned that owners may need to sell because of job transfers, employment changes or other circumstances. Mitsubishi Estate said it had not decided how to respond to the request.
Publicly available reporting has not established specific exemptions, penalties or enforcement arrangements for the proposed five-year restriction. Its practical effect would depend on the contractual provisions with buyers that developers adopt.
National Tax Proposals Raise a Different Question
Separately, the Liberal Democratic Party began discussions on additional measures to discourage speculative new condo transacitons at an October 21 meeting of its Research Commission on Housing, Land and Urban Policy.
Meikai University professor Yasuhiko Nakajo proposed heavier taxation of short-term property transfer gains or a special tax intended to discourage speculative transactions.
These remain preliminary proposals, not government decisions. The party's official report did not establish a specific tax mechanism, rate or implementation timetable.
Japan already taxes short-term property gains more heavily than long-term gains. Under existing rules, the distinction depends on whether a property has been owned for more than five years as of January 1 in the year of sale.
That differs from Chiyoda Ward's proposed contractual restriction, which would run for five years from handover.
The key questions now are whether developers will adopt Chiyoda Ward's proposed five-year restriction, what exemptions or penalties any contracts would include, and whether national tax discussions lead to concrete proposals.
Further Reading:
Chiyoda Ward Requests Five-Year Condominium Resale Restrictions from Developers - Kyodo News, October 27, 2026 (Japanese only)
Chiyoda Ward's Request Concerning Speculative Condominium Transactions - Chiyoda Ward, July 18, 2025 (Japanese only)
LDP Begins Discussions on Measures to Curb Condominium Price Increases - Liberal Democratic Party, October 26, 2026 (Japanese only)
Chiyoda Ward's Five-Year Resale Restriction Request and Developers' Responses - TV Asahi, October 27, 2026 (Japanese only)
