I’m not sure we have enough information to conclude that property values will never fall with increased density. It could also be that property values never we

I’m not sure we have enough information to conclude that property values will never fall with increased density. It could also be that property values never went up to begin with in Tokyo, and remained at market equilibriumm, I.e. prices there reflect simply the cost to produce the unit, plus some profit margin. Things never got out of hand in Tokyo like they have in SF and NYC (though the latter, to a much lesser extent). The value of most commodities stays flat once it reaches that equilibrium (eg. most food, clothing). The argument that housing prices in SF would fall with increased density seems to be another way of making the claim that SF housing is currently experiencing “surge pricing”, so to speak.