Tokyo ward seeks 5-year ban on condo unit resale

TOKYO (Kyodo) -- The Chiyoda Ward in central Tokyo has called on condominium developers to prohibit buyers from reselling their units for five years following purchase, seeking to curb the rapid rise in property prices. The request was made to developers working on projects in the ward under a scheme that provides incentives such as relaxed floor-area ratio limits.

The ward also urged developers to prevent buyers from purchasing multiple units in the same building under the same name. Chiyoda Ward explained that the practice of scalping has contributed to the increase in prices of new condominiums, which has subsequently led to higher prices in the resale market and apartment rents. Additionally, the ward claimed that scalping can result in an increased number of vacant units, potentially causing issues for the residential environment and the functioning of condominium management associations.

The ward had previously made a similar request to the real estate industry in July of the previous year.