What’s up with Azabudai Parkhouse?

In April 2012, Mitsubishi Jisho Residential announced via their Azabudai Parkhouse sales website that “sales have been suspended while business planning is under review.” All floorplans and property details had been removed from the site which can be seen here.

No other information was provided, but it’s possible the apartments might be made available for rent. This might anger some owner-occupiers who did not expect to be buying into a tenant building. Rental apartments were supposed to be advertised from May, but there is still no information available.

Planning for the Azabudai project began prior to the Lehman Shock in 2008 and the building was completed in December 2010. Obviously the market has changed considerably since 2008 and the luxury property market has taken a hit.

When new, apartments were priced between 65 and 840 million Yen, and had an average price of 1,720,000 Yen/sqm. They were banking on the name brand of the attached Tokyo American Club to add to the property value, but buying into the building did not grant automatic access to the club as residents were still required to pay the club’s membership fees. It was estimated that at least half of the 165 apartments remain unsold more than 18 months after completion.

The land underneath the building is leased from the Tokyo American Club under a 51-year leasehold. At the end of this lease, the building must be demolished and the land returned to the Club. Leasehold apartments are generally more difficult to sell when compared to freehold ones. Add in the luxury price tag, and you have a very difficult product to move.

There are several apartments currently listed for re-sale in this building.

  • 4F 1-Bedroom 61.56sqm 73,800,000 Yen (approximately 78 million Yen when new)
  • 2F 1-Bedroom 86.11sqm 88,800,000 Yen (approximately 135 million Yen when new)
  • 10F 2-Bedroom 143.22sqm 248,000,000 Yen*
  • 14F 2-Bedroom 143.22sqm 310,000,000 Yen*
    (*These two apartments were priced around 271 million Yen when new, although the actual price would have depended on the  floor).

There are also two apartments listed to rent, possibly by individual landlords:

  • 2-Bedroom 125.61sqm 1,050,000 Yen/month
  • 2-Bedroom 86.11sqm 520,000 Yen/month

*Update: The sales page was restored in early 2013 and sales appear to have resumed. By April 2014, 65 apartments (40% of the total) were still listed for sale by the developer.

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