Kyoto City officials have voted in favor of a rule that will require owners of Kyoto’s traditional machiya townhouses to provide advance notice to the city prior to demolition. However, options to help reduce the burden of maintaining a historic home remain extremely limited. Without the support and participation from the local community this new rule may have only a minor effect.
A nearby acquisition by Mitsui Fudosan has some industry experts suggesting that the1100-room Imperial Hotel near Hibiya Park in downtown Tokyo may be slated for future redevelopment.
The hotel includes the main building that was built in 1970 along with a 31-storey office/hotel building at the rear that was completed in 1983. By the time of the 2020 Summer Olympics, the main building will be 50 years old. With a booming tourism industry, many of Japan’s top hoteliers are expanding, refurbishing or redeveloping their older hotels.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of January 2018:
A 51-year old retail and public housing building alongside Aoyama Dori Avenue in Omotesando will soon be rebuilt. The 10-storey Seihou Building was built in 1967 and has a total floor area of 6,075 sqm (65,000 sq ft). It is jointly owned by a subsidiary of Mizuho Bank and the Urban Renaissance Agency.
The new building will have a total floor area or 16,000 sqm (172,000 sq ft), more than 2.5 times the size of the older building.
According to Tokyo Kantei, the average asking price of a second-hand apartment along the Ginza subway line in 2017 was 1,047,000 Yen/sqm, down 0.8% from the previous year. The average building age was 22.4 years and the average apartment size was 56.19 sqm (605 sq.ft).
Ginza in top spot
The most expensive station was Ginza with an average asking price of 1,646,000 Yen/sqm, an increase of 17.2% from 2016. The average building age was just 5.8 years which can be attributed to the high average price, while the average apartment size was 44.9 sqm (483 sq.ft).
According to Tokyo Kantei the average asking price of a 70 sqm (753 sq ft) apartment across greater Tokyo was 36,150,000 Yen in December 2017, down 0.2% from the previous month but up 1.3% from 2016. The average building age was 23.1 years.
In Tokyo’s 23 wards the average asking price was 53,400,000 Yen, up 0.2% from the previous month and up 0.2% from 2016. The average building age was 22.7 years.
Investors in share houses have been left struggling to make loan repayments after their subleasing companies failed to make rental payments to landlords. A non-profit support center for landlords reported over 100 calls from distressed property owners over the past month.
Two different share house operators have recently reneged on their sublease agreements with landlords.
On January 17th, a Tokyo-based share house operator held a meeting with investors informing them that they would no longer be able to pay rent to the landlords due to financial difficulties.
The Japan Sport Council and Meiji Shrine are reported to be considering the sale of the air rights above the Meiji Jingu Stadium and Prince Chichibu Memorial Rugby Stadium in central Tokyo to help cover the stadiums’ redevelopment costs. Both stadiums are located near the Olympic Stadium.
The Shirokane 1 Chome West Central District Redevelopment Committee announced plans for two 40-storey high-rise apartment buildings. The development site is located on the western side of Shirokane Aer City, which includes the 43-storey, 134m tall Shirokane Tower apartment building.
The redevelopment will include a 140m tall, 40-storey residential building with 900 apartments and a 20m tall factory building. A town planning decision is expected later this year. Construction could start in 2021 with completion by 2025. The total project cost is estimated at 70 billion Yen (approx. 640 million USD).
According to Kenbiya, a multi-listing site that specializes in investment properties across Japan, the average asking price of a studio apartment in Tokyo and Osaka in 2017 reached the highest level since record-keeping began in 2006.
The average asking price of a studio apartment in Tokyo’s 23 wards in 2017 was 19,610,000 Yen, up 9% from 2016 and exceeding a previous peak of 18,280,000 Yen recorded in 2015. In Osaka City, the average asking price was 13,810,000 Yen, up 20% from 2016.