Commercial property prices in Tokyo, a bellwether for the market, look to have peaked as the capital faces a glut of new offices even as the number of workers is set to decline.

The property market had rebounded in the past three years as Prime Minister Shinzo Abe's economic policies — with ultra-low interest rates — drew in investors attracted to the wider gap between returns on property and borrowing costs than in other developed markets.

Also, as companies regained confidence, they sought more space, helping drive down office vacancy rates. Rents have been rising since 2014.