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A 2,200 square meter block of land in Roppongi will go up for public sale by the local finance bureau next month. The government-owned property was previously used to provide subsidised housing for government employees.

The property is located next-door to the Embassy of Saudi Arabia and 50 meters south of Izumi Garden. The land value was estimated at around 7.3 billion Yen back in 2011. Land prices around this area have risen between 15 ~ 30% since then, which could mean that the current land value is closer to 8 ~ 9.5 billion Yen (approx. 77 ~ 92 million USD).

Given the zoning and location of the land, the potential building size could be up to 8,800 ~ 11,000 square meters. Based on this, the land value may be around 730,000 ~ 1,100,000 Yen per buildable square meter (or 660 ~ 990 USD per buildable square foot). In September, a commercial block of land in Ginza sold for 4,500,000 Yen per buildable square meter.

The sale includes the 32-year old, 9-storey ‘Roppongi Jutaku’ apartment building with a total floor area of 7,800 sqm. The 90 apartments have been empty since 2010. They were around 62 square meters in size and rented to government employees for the low rate of 20,000 ~ 30,000 Yen/month (about 10% of the market rent).

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This property has been targeted by several fraudsters over the years. The scam would involve the fraudster falsely claiming that they won the bid to purchase the property but needed some additional cash to complete settlement. After receiving funds from the victim, the scammer would disappear. Several government owned properties within Tokyo have been targeted by these scammers and the Kanto Local Finance Bureau has issued a consumer warning on their home page.

The area has been a hotspot for redevelopment for the past few years, with more projects planned in the future. Sumitomo are putting the finishing touches on their 241m tall Roppongi Grand Tower complex located across the street. Mori Building are also planning a large-scale project for an 8 hectare size in the Toranomon and Azabudai district. Mori’s development site adjoins the Roppongi Jutaku land.

The local finance bureau will be accepting tenders in the first week of December. The winning bid will be announced in January.

*Update: Mori Building was the successful bidder.  A total of 10 bids were received. The sale price has yet to be announced.

Location

1-8-1 Roppongi, Minato-ku, Tokyo

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