Secondhand apartment prices in March – Tokyo Kantei

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 41,480,000 Yen in March, up 0.1% from the previous month and up 5.8% from March 2013. This is the fourth month in a row to see a month-on-month increase, although the rate of growth has reduced. The average apartment age was 20.9 years, up 0.4 years from the previous month.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 57,220,000 Yen, up 0.7% from February and up 11.1% from last year. The average apartment age was 21.0 years, up 0.4 years from the previous month. Continue reading

Can the Olympics facilities withstand an earthquake?

Toyosu tsunami hazard sign

A tsunami hazard sign in Toyosu

A recent estimate by a  government panel in late 2013 reported that a magnitude-7 earthquake directly under Tokyo could destroy as many as 610,000 buildings in Tokyo and the neighbouring three prefectures. 70% of the affected buildings could be destroyed by fires that quickly spread through densely packed neighbourhoods.

Many of the Olympic events are centred around the islands in Tokyo Bay. While they may be spared from the risk of fire due to the open space, these man-made islands can suffer damage from liquefaction and are even at risk of being submerged by a tsunami. A working group from the Cabinet Office’s Disaster Management Group are requesting that urgent measures be taken to reduce the risk of any damage and to make sure that the Olympics can be held without disruption. Continue reading

March rental data – Tokyo Kantei

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,601 Yen/sqm in March, up 1.5% from the previous month and up 2.4% from March 2013. The average apartment size was 59.50 sqm and the average building age was 18.5 years.

The average rent in Tokyo’s 23-ku was 3,191 Yen/sqm, up 1.3% from the previous month and up 3.6% from last year. This is the fifth month in a row where the average rent has increased from the previous month. The average apartment size was 56.40 sqm and the average building age was 16.7 years. Continue reading

Otemachi business area to see first apartments in 2017

Ascott The Residence Otemachi 2

Japan’s top business district is about to get its very first apartment development. Mitsubishi Jisho announced on April 14 that luxury serviced apartment operator, The Ascott Limited, will occupy part of a new high-rise development in Otemachi 1 Chome.

While the Singaporean company already operates Citidines and Somerset serviced apartments throughout Tokyo, this will be their first ‘Ascott The Residence’ branded property in Japan. The residence will cater to domestic and foreign business people looking for long-stay accommodation. The apartments should begin taking guests from early 2017.  Continue reading

Supply of new apartments in Tokyo shrinking

According to the Real Estate Economic Institute, 4,641 new apartments were released for sale across greater Tokyo in March, up 75.1% from February but down 9.7% from March 2013. This is the second month in a row where the apartment supply has fallen below the level from last year.

Since Spring in 2013, demand for new apartments has exceeded developer expectations and supply is starting to run short. The current stock of 3,828 apartments at the end of March is about half of the normal level for greater Tokyo. Continue reading

Secondhand apartment sales in March – REINS

According to REINS, 3,994 secondhand apartments were sold across greater Tokyo in March, up 20.6% from the previous month and up 4.3% from March 2013. The average sale price was 26,650,000 Yen, down 1.0% from February but up 2.7% from last year.

The average price per square meter was 416,600 Yen, down 200 Yen from February but up 4.9% from last year. The average apartment age was 19.40 years and the average apartment size was 63.96 sqm (688 sqft).

The Tokyo Metropolitan area saw 1,983 apartments sold, up 20.9% from February and up 6.1% from last year.  Continue reading

Office vacancy rates in March – Miki Shoji

According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 6.70% in March, down 0.31 points from the previous month and down 1.86 points from March 2013. This is the first time since May 2009 that vacancy rates have dropped to the 6% range.

The vacancy rate in brand new buildings was 20.26%, up 0.61 points from the previous month but down 2.98 points from last year.  Continue reading

Selected news and information on the Japanese property market