TOKYO -- Japan's ruling Liberal Democratic Party is considering measures aimed at curbing soaring condominium prices, such as restricting the short-term resale of properties in Tokyo and other big cities.

With an eye on upcoming local elections in April next year, the party, led by Prime Minister Sanae Takaichi, hopes to put support for working-age people at the forefront of its agenda.

The LDP's research commission on housing and land policies kicked off discussions on Wednesday. Based on those talks, the party will draw up measures to hold down property prices. "Prices of newly built condominiums in Tokyo's 23 wards have doubled in the past decade," LDP lawmaker Midori Matsushima, who heads the commission, said at the start of the meeting. "We need to work on measures so that people who want to live in the residences can buy them." Buying a condominium in big cities, especially Tokyo, has become almost impossible for many people. According to the Real Estate Economic Institute, the average price of a newly built condominium in Tokyo's 23 wards was 137.84 million yen ($872,000) in fiscal 2025, up 18.5% from the previous year.

The average annual income of a full-time employee in the capital, meanwhile, was 6.78 million yen in fiscal 2025, according to labor ministry statistics.

During the lower house election campaign in February, the LDP pledged to "curb speculative transactions in the Tokyo metropolitan area and elsewhere." Earlier this month, a project team working within the party's headquarters on policies dealing with foreign nationals submitted recommendations to the government calling for "early introduction of tax measures" to address rising home prices.

Under the current system, gains from the resale of a condominium within five years of purchase are treated as "short-term capital gains," and subject to a tax rate of nearly 40%, including both income and residential taxes. That is twice the roughly 20% tax rate applied to "long-term capital gains" on properties held for more than five years.

But there are strong calls among some LDP members for tougher measures. Critics say the current tax rules are insufficient to deter property speculation. The issue could become a topic in the annual tax reform outline to be compiled in December together with its coalition partner, the Japan Innovation Party.

Ahead of the April elections, the ruling party hopes to come up with a flagship policy that can appeal to urban voters. Elections will be held in many urban areas, including 22 of Tokyo's 23 wards where local assembly members' terms are set to expire.

"We need to support families with children who are reaching the stage when they would normally buy a home," a senior LDP official said.

Opposition parties are also drawing up housing policy proposals, eyeing not only homebuyers but renters as well. Rents are also rising as more people choose not to purchase a home.

Soaring prices for housing are a major issue for governments around the world. Some countries have imposed restrictions on foreign buyers. In South Korea, for example, real estate policies have been cited as a major reason for President Lee Jae Myung's falling approval rating.

In August 2025, the South Korean government began requiring foreigners to obtain permission before buying homes in Seoul and the wider capital region. To qualify as a buyer, they must live in the properties they purchase for at least two years.

Canada and Australia have imposed temporary bans on foreign nationals purchasing homes, while Singapore charges foreigners an additional 60% stamp duty on residential property purchases.

Foreign investors in the property market have become an issue in Japan, too. The topic has been on the agenda at times, including during the lower house election in February. But restrictions that apply only to foreigners could raise questions about their compatibility with international trade and services agreements.

Instead of targeting buyers based on their nationality, the government plans to consider tax measures and other steps to address highly speculative real estate transactions, such as short-term resales.

Meanwhile, there are concerns that aggressive measures to dampen property prices could hurt the wider Japanese economy. "We need to assess the impact on regional banks," a senior LDP tax official said, stressing that a sharp decline in land prices could weaken their financial condition.

Real estate now accounts for roughly 18% of overall lending by Japanese banks, a much higher portion than the 10% or so seen during Japan's bubble economy of the mid to late 1980s. Some regional banks depend on real estate for nearly half their lending. About a quarter of all loans related to the real estate industry by regional banks were concentrated in Tokyo's five central wards, as of March 2025, according to the Financial Services Agency.

Rising asset values, driven by higher share prices, among other factors, have been cited as a reason for the high approval ratings enjoyed by the Takaichi government. Some observers say any property measure that cools share prices could threaten the current government. Policymakers should be careful about the "scope and timing" of measures to curb prices, a senior official of the LDP's research commission said.