Articles appearing in both the Nikkei Business Publication and the Business Journal have suggested that a block of land (with building) alongside Ginza’s main shopping street will be sold for a record price of up to 64 million Yen per square meter (approx. 570,000 USD/sqm or 53,000 USD/sq ft).
The Fujiya Ginza Building is located alongside Chuo Dori Street and directly opposite the recently opened Ginza Six department store. It sits on a 297 sqm (3,196 sq ft) block of commercially-zoned land with a maximum floor-area-ratio of 800%. The current building has 8 floors and 2 basements with restaurants and retail on the first three floors. The upper floors are vacant.
With a potential buildable area of up to 2,300 sqm (24,750 sq ft), the rumored sale price could represent as much as 8.2 million Yen per buildable square meter (approx. 6,815 USD per buildable square foot), almost double the price paid by a developer for a retail site several blocks away last year.
The sale is expected to be completed at the end of November. The seller, Fujiya Co., is a nationwide chain of sweets stores and restaurants. Under a duty of confidentiality agreement, details on the actual sale price and buyer have not been made public, although the company is expecting to post 19 billion Yen in extraordinary gains at the end of the year.
Last year, a vacant block of land located a few blocks behind Chuo Dori Street sold for 43.7 million Yen per square meter, or around 4.5 million Yen per buildable square meter (based on a potential 3,000 sqm retail/commercial building).
This year, the National Tax Agency’s ‘rosenka’ land value just further along the street reached 40.32 million Yen/sqm, up 26% from 2016 and exceeding the previous record high of 36.5 million Yen last seen in 1992.
Nikkei Business Publications, September 26, 2017.
Business Journal, October 14, 2017.