Tokyo residential property prices may be poised for a major decline because of excess supply and flagging demand, according to Minoru Mori, chairman of Japan's biggest privately held developer.
"We foresee full-blown drops in residential property prices," the chairman of Mori Building Co. said in an interview last week in Shanghai.
The slowing economy and the credit crisis that tightened lending has dampened demand for commercial and residential property. The slump in Tokyo's condominium market may last longer than the drop that followed the downfall of the asset-price bubble in 1990, according to an estimate by Real Estate Economic Research Institute.