Tokyo office rents seen falling as supply glut tilts balance

Tokyo

COMMERCIAL property prices in Tokyo, a bellwether for Japan's market, look to have peaked as the capital faces a glut of new offices even as the number of office 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 by the wider gap than in other developed markets between returns on property and borrowing costs.