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By Aiko Hayashi

TOKYO, July 4 (Reuters) - The Nikkei share average fell 0.2 percent on Friday to set its longest losing streak in more than half a century, dragged down by property stocks such as Sumitomo Realty & Development (8830.T: Quote, Profile, Research) on credit fears.

Shares of apartment developer Urban Corp 8868.T tumbled nearly 30 percent, leading a sharp decline among some midsize property companies on speculation they could be risky investments following a handful of recent bankruptcies in the sector.

"A 12-day losing streak sounds big but there were days when the market didn't fall much and the amount of decline is only about 1,200 points. It's just a matter of words," said Masaru Hamasaki, senior strategist at Toyota Asset Management.

"Still, we have to stay alert as Japanese stocks couldn't avoid being sharply hit if a spiral of interest rate hikes in Europe, the expansion of difference in interest rates, a weaker dollar, high oil prices and weak stock prices emerges."

The benchmark Nikkei .N225 fell 27.51 points to 13,237.89, down for a 12th day and its longest losing run since a 15-day period in 1954.

The broader Topix .TOPX shed 0.01 percent to 1,297.88.

"The afternoon's market fall is due to property shares that are under huge pressure on credit worries. Investors think the real estate sector will have a tough time going forward," said Hiroaki Kuramochi, general manager of the financial institutions service department at Tokai Tokyo Securities.