Tokyo’s Chiyoda Ward proposal to limit condo resales draws industry scrutiny

Japan’s leading real estate lobby has raised objections to a new proposal by Tokyo’s Chiyoda Ward aimed at curbing speculative condo purchases. Junichi Yoshida, Chairman of the Real Estate Companies Association of Japan and Chairman of Mitsubishi Estate, criticized the plan on July 25, stating, “It’s questionable whether this is a rational regulation. In a free-market economy, we currently see no reason for the association to act on this.”

Junichi Yoshida, Chairman of the Real Estate Companies Association of Japan and Chairman of Mitsubishi Estate. Photo courtesy of R.E. Port News.

The remarks came in response to a formal request issued by Chiyoda Ward on July 18, which asks developers involved in local redevelopment projects to include contractual clauses banning resale of units for five years after handover. The ward also seeks to prohibit multiple unit purchases under the same name.

In its request, the ward cited concerns that speculative buying is driving up prices and pushing out potential long-term residents. “People who actually want to live in the area may be unable to do so,” the ward warned. “An increase in unoccupied units with no real residents could also harm the local living environment.”

The Real Estate Companies Association received its first briefing from ward officials on July 24. Executive Director Masashi Nomura said the group was still trying to understand the intent and legal basis behind the proposal. “We don’t yet have a full grasp of the ward’s objectives or the rationale behind these restrictions,” Nomura said. “Until we evaluate the details, we can’t take a formal position.”

He also questioned the premise of the regulation: “Isn’t the current market being driven by actual end-user demand? We don’t yet understand the facts the ward is using as its basis.”

While some developers have voluntarily imposed resale restrictions or buyer limits in response to requests from residents or local governments, such practices remain rare and are not standard industry policy.

At the same July 25 board meeting, the association also approved a wide-ranging policy proposal focused on urban redevelopment, environmental sustainability, housing resilience, and logistics reform.

It called for stronger government support to tackle rising construction costs, promote decarbonization and digital transformation, and prepare for structural challenges facing Japan’s logistics sector and aging condo stock. 

Sources:

Nikkei Shimbun (Japanese only; paywalled)

R.E. Port News (Japanese only)