Construction has started on a new luxury apartment building in Omotesando. The Minato-ku Minami Aoyama 4 Chome Project is a 7-story residential building located across the street from the Aoyama Cemetery and next-door to Oji Green Hill Apartments.
The developer, Mitsubishi Jisho Residence, recently completed a 7-story condominium called The Parkhouse Gran Minami Aoyama just 300 meters from this current project site. The apartments went on sale in mid-2015 and sold out on the first day of sales with an average of 9.6 buyers for each apartment. Current resale prices in this building range from 2.4 ~ 3.95 million Yen per square meter (approx. 1,980 ~ 3,260 USD/sq ft). It is possible that this new project could see similar pricing. More
An area just east of Sengaku-ji Temple in Takanawa, Tokyo, has entered the very early stages of discussions for a possible future redevelopment. The area covers 11,000 square meters and currently includes a number of low-rise houses, office and apartment buildings. It also includes Sengaku-ji’s Middle Gate and temple road.
Sumitomo Realty is taking part in planning and preparation. A town planning decision is eyed for 2018 and construction could start by 2020. More
The following is a selection of apartments that were sold in central Tokyo during the month of January 2017: More
Toranomon is possibly the most exciting area in Tokyo at the moment for real estate development and activity. A lot of offshore buyers are still unfamiliar with the Toranomon area, despite it being right next door to Roppongi, but we are expecting this to change in the next 5 or so years as major projects are completed.
Over the past 10 years the resident population has increased by 48%. The average household size in 2017 is 1.8 persons, up from 1.68 in 2007. New residential developments will see the population rise further in the coming years as more people can move to the neighborhood. More
The Real Estate Economic Institute released a report on potential trends for the new apartment market in greater Tokyo for this coming year.
The supply of brand new apartments is expected to reach 38,000 units in greater Tokyo, up 6.4% from 2016 and the first time in four years to see an increase in supply. It is still below the level of 56,478 units released for sale in 2013. In 2016, supply was down 11.7% from 2015. More
The population of Tokyo’s Chuo ward exceeded 150,000 residents for the first time since 1962. Construction of high-rises in the bayside area and a desire to live closer to one’s workplace has seen population on a rise since 1998. Meanwhile, childcare facilities and medical clinics are struggling with the larger population. More
The average price of a new apartment in Kyoto City increased for the sixth year in a row, reaching 52,960,000 Yen in 2016. The city is the second most expensive region in Japan for new apartments, with Tokyo’s 23 wards in top place with an average price of 66,290,000 Yen in 2016.
Prices have been pushed up by several factors, including increasing construction costs, fierce competition between developers looking for sites for hotels, and growing demand from out-of-town buyers. More
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo was 35,680,000 Yen in December 2016, up 0.6% from the previous month and up 9.1% from 2015. The average building age was 22.5 years.
In the Tokyo metropolitan area, the average asking price was 48,380,000 Yen, up 0.6% from the previous month and up 4.7% from 2015. The average building age was 22.0 years.
In Tokyo’s 23 wards, the average asking price was 53,280,000 Yen, up 0.9% from the previous month and up 3.6% from 2015. The average building age was 21.9 years. This is the highest level seen since record-keeping began in 1997.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 73,100,000 Yen, up 0.6% from the previous month and up 2.3% from 2015. The average building age was 20.0 years.
REINS released their annual report on transaction data for greater Tokyo in 2016. The key points from the report are:
The supply of new apartments in greater Tokyo in 2016 reached a 24-year low with 35,772 apartments offered for sale. This represented a decrease of 11.6% from 2015 and was the lowest level seen since 1992. Developers have been restricting supply amidst rising construction costs, rising land prices and stagnant wages of potential buyers. Development sites in prime locations once earmarked for residential are being converted to office and hotel projects which can provide better returns.
Existing properties that have been renovated are now proving popular with buyers who would have once only considered buying new, which is putting further pressure on new apartment sales. In fact, a record high number of second-hand apartments sold in greater Tokyo in 2016. There were 37,189 reported sales, up 6.9% from 2015. Second-hand apartment sales exceeded new apartment sales by over 50%.
The average contract ratio for the year was 68.8%, which is below the 70% line said to indicate positive market conditions, and is the lowest ratio seen since 2009. More