The real estate sector took a hit in Tokyo Wednesday, with the exchange’s properties sector index dropping 4.2 percent on the session on overvaluation concerns.

The declines helped send the Nikkei 225 down 1.6 percent to 16,158.45, while the Topix index dropped 1.71 percent to 1,569.47.

The Mothers market fell 2.23 percent to 717.07.

Among properties groups, Mitsubishi Estate (TYO: 8802) was 3.8 percent lower to ¥2,895 and Mitsui Fudosan (TYO: 8801; NAS: MDSFF) dropped 4.1 percent to ¥2,780.

In a related sector, Daiwa House Industry (TYO: 1925) was 3.2 percent lower to ¥1,471 after its chairman said that it wants to cut costs locally, where it fears land prices could collapse, and expand in China.

Banks were also lower.

Sumitomo Mitusi Financial Group (TYO: 8316) fell 1.5 percent to ¥872,000, its lowest share price in two years, while Mizuho Financial Group (TYO: 8411; NYSE: MFG) dropped 2.4 percent to ¥702,000.

There were gainers on the session.

Sony (TYO: 6758; NYSE: SNE) was 2.3 percent higher to ¥5,740 on the news that it is planning an IPO of its financial unit in Tokyo next month.

Meanwhile, new department store chain J-Front Retailing (TYO: 3086), created by the merger of Daimaru (TYO: 8234) and Matsuzakaya (TYO: 8235), added 6 percent to ¥975 when Goldman Sachs (NYSE: GS) initiated coverage with a “buy” recommendation and a target share price of ¥1,200.

In Tokyo on Thursday the Nikkei 225 was 0.67 percent higher to 16,984.11 and the Topix index gained 0.03 percent to 1,669.33, but the Mothers market fell 0.21 percent to 830.18.

Gains were helped by a new report from Japan’s National Tax Agency which showed that land prices in the country were 8.6 percent higher last year, with a gain of 17 percent in Tokyo.

The report sent the real estate sector higher. Mitsui Fudosan (TYO: 8801; NAS: MDSFF) added 4.2 percent to ¥3,230, while Mitsubishi Estate (TYO: 8802) gained 6.3 percent to ¥3,200 and Tokyu Land (TYO: 8815) was up 7.9 percent to ¥1,208.

In addition, homebuilder Daiwa House Industry Co (TYO: 1925) was 4 percent higher to ¥1,570.

The retail sector also saw gains, with Fast Retailing (TYO: 9983) adding 4.8 percent to ¥6,820 on a successful bid for the Barneys New York chain of department stores, owned by Jones Apparel Group (NYSE: JNY).

Drug maker Chugai Pharmaceutical (TYO: 4519) gained 2.7 percent to ¥2,075 on an increased full-year projecting, while Astellas Pharma (TYO: 4503) was 3.1 percent higher to ¥5,050 on a fiscal first quarter net income gain of 52 percent.

In the electronics sector Pioneer (TYO: 6773) dropped 4.5 percent to ¥1,546 on a decline of 40 percent in sales of plasma televisions in the quarter, while Casio (TYO: 6952) fell 4.6 percent to ¥1,699 after it said quarterly operating profit was down 78 percent in the most recent quarter on poor sales of mobile phones.

Banks also saw declines, with Resona (TYO: 8308) down 3.3 percent to ¥238,000 and Mizuho (TYO: 8411) dropping 4.7 percent to ¥730,000.