Japan Moving to Ban Condo Resale before Delivery

Tokyo, Nov. 26 (Jiji Press)--Japan’s real estate industry has begun to ban the resale of condominiums before the completion of property handover, in a move to check soaring unit prices.

The Real Estate Companies Association of Japan announced Tuesday that it has urged member companies to implement the ban and set quantitative purchasing limits.

The average unit price of new condominiums in central Tokyo now far exceeds 100 million yen. Some claim that prices have been driven up by the short-term resale by investors, including foreign nationals.

The association has called for the inclusion of resale prohibition clauses in sales contracts and important matter descriptions. The member realtors were also asked to thoroughly confirm the purpose of each purchase and whether the contract and registration of a purchased condo were made under the applicant’s name.

Subject to the requests are properties offered to the public. Each company will decide whether to adopt the measures.

[Copyright The Jiji Press, Ltd.]