Japan's Ministry of Land, Infrastructure and Transport plans to seek tax code changes for fiscal 2027 to discourage speculative condominium transactions that are contributing to higher urban home prices. The ministry has not yet detailed the specific changes, which would take effect from April 1, 2027, if approved. The initiative follows concerns that buyers are purchasing newly built condominiums and quickly reselling them for profit, particularly in central Tokyo, where average prices above ¥100 million, or about $630,000, are no longer uncommon. Under the current system, capital gains on property held for five years or less are taxed at 39.63%, compared with 20.315% for holdings kept for more than five years; both rates include the special reconstruction income tax. The ruling coalition's tax commission is expected to examine the policy's details toward year-end. Higher taxes could curb speculative demand, although experts say they may also reduce liquidity in the existing condominium market.