The Kansai Electric Power Co. and Tokyo Gas have jointly acquired the trust beneficiary rights to Shiba Park Building in central Tokyo on March 20. The acquisition price has not been made public, but insiders suggest a price somewhere in the range of 150 billion Yen (approx. 1.4 billion USD).
Japan Post Insurance have posted a capital gain of 85.03 billion Yen (approx. 803 million USD) on the sale of an Art Deco building and land in Tokyo’s Minato ward that took place in February. The buyer was Mitsui Fudosan Residential.
According to the Real Estate Economic Institute, 2,490 brand new apartments were released for sale across greater Tokyo in February, up 28.7% from the previous month and up 7.8% from last year. The average sale price was 61,280,000 Yen, up 5.8% from last year. The average price per square meter was 889,000 Yen, up 4.3% from last year.
The contract ratio was 65.0%, down 3.4 points from last year and down 0.2 points from the previous month.
According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,527 Yen/sqm in February, up 1.1% from the previous month and up 6.0% from last year. This is the highest level seen since record-keeping began in March 2008 and has broken a previous record set in January 2018.
Nomura Real Estate Development is planning a mixed-use hotel and condominium complex for a 4,000 sqm block of land near Ebisu Station in central Tokyo. Mixed-use hotel / apartment projects are quite uncommon in Japan, with one of the few examples being Mori Building’s Toranomon Hills tower in Minato ward.
Nomura acquired the site in March 2017 for 10.5 billion Yen through a public bidding process. It was previously a government-owned housing complex for civil servants. The government required the buyer to build both apartments and accommodation facilities as a condition of the sale.
With the rise of dual-income households, developers are focusing on convenience to transport as buyers place more emphasis on a short commute to work. They are pricing this convenience into new apartments, which may limit the potential for future capital gains.
According to REINS, 3,424 second-hand apartments were reported to have sold across greater Tokyo in February, up 29.6% from the previous month but down 1.1% from last year. The average sale price was 33,530,000 Yen, down 0.2% from the previous month but up 6.4% from last year. The average price per square meter was 511,900 Yen, down 0.8% from the previous month but up 3.9% from last year. This is the 62nd month in a row to see a year-on-year increase in sale prices.
1,762 second-hand apartments were sold in the Tokyo metropolitan area, up 25.6% from the previous month but down 1.2% from last year. The average sale price was 41,540,000 Yen, up 0.9% from the previous month and up 7.4% from last year. This is the highest sale price seen since REINS began publishing data in 2001. The average price per square meter was 677,100 Yen, down 0.5% from the previous month but up 4.0% from last year. This is the 65th month in a row to record a year-on-year increase in sale prices.
Last December, real estate companies HULIC and Fuyo General Lease acquired the Hilton Tokyo Odaiba hotel for 60 billion Yen (approx. 552 million USD). The seller was US investment firm Elliott Management Corporation.
Aetos Capital acquired the hotel in 2007 from Japan Airlines for 25 billion Yen, before reselling it to Elliott. In 2015, Elliott transferred the operating rights to Hilton Worldwide and the hotel was renamed to Hilton Tokyo Odaiba.
Shikoku Railway Company (JR Shikoku) is planning to open traditional-style guesthouse accommodation in Kyoto to cater to the growing demand from foreign tourists.
Their first project is a group of three townhouses under construction on a 170 sqm block of land just south of Kyoto Station and 14 minute walk to Tofuku-ji Temple. The total project cost is estimated at 150 million Yen (approx. 1.4 million USD).
Blue Bottle Coffee will be opening a cafe in a traditional old building in Kyoto on March 23rd. This will be the company’s 8th store in Japan and their first store outside of Tokyo.
The cafe is located in the Nanzenji district and is 400 meters west of Nanzen-ji Temple. A 100-year old town house is currently in the final stages of being renovated into a 452 sqm (4,860 sq.ft) cafe with 44 seats, a shop selling original items, and a courtyard space.