The Japanese government will soon be signing a sale agreement with the owner of Mageshima Island in Kagoshima Prefecture for 16 billion Yen (approx. 147 million USD) with settlement expected to take place in March. The owner of the majority of the island is a Tokyo-based developer.
Real estate company HULIC has agreed to sell the Hilton Tokyo Odaiba hotel for 62.4 billion Yen (approx. 573 million USD) to the Japan Hotel REIT. The sale will take place in April 2019 and will represent the highest valued hotel held by a REIT within Japan.
In November 2018, a Gifu-based real estate company has purchased a historic Japanese inn at a public foreclosure auction. The winning bid was 42,790,000 Yen.
On December 25 the Mainichi Shimbun newspaper reported that related parties allege that Seibu Shinkin Bank may have overvalued investment properties and over-lent to borrowers as a result.
According to REINS, 2,987 second-hand apartments were reported to have sold across greater Tokyo in December 2018, down 7.4% from the previous month and down 0.8% from the previous year. The average sale price was 33,800,000 Yen, up 2.5% from the previous month and up 1.8% from 2017. The average price per square meter was 524,100 Yen, up 3.1% from the previous month and up 0.9% from 2017. This is the 72nd month in a row to record a year-on-year increase in sale prices.
The former Yasuda Residence in Takarazuka City may soon be donated to a private enterprise, with applications from interested parties to be held sometime in February or March this year.
According to the Japan Real Estate Institute, the real estate transaction volume across Japan for the first half of 2018 was 2.1 trillion Yen (approx. 18.5 billion USD).
Thank you to our many readers and clients over the past year. We look forward to your continued support in 2019.
~ The Japan Property Central Team ~
This year we have simplified our annual property report below. We apologize if it focuses on the Tokyo market, as this is where the majority of our clients are looking to invest.
The government has decided to extend the home loan tax deduction program for new home buyers to allow a three-year period whereby a home owner could deduct up to 2% of the building portion of their purchase price from their income tax. This is an effort to help support the housing market this year when the consumption tax rate is scheduled to increase to 10% from October 2019.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of December 2018: