According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,481 Yen/sqm in July, down 0.1% from the previous month but up 5.4% from last year. This is the 8th month in a row to see a year-on-year increase. The average apartment size was 55.40 sqm and the average building age was 18.9 years.
One of the leading examples of Japan’s metabolist school of architecture – Nakagin Capsule Tower – is inching closer towards a potential fate of demolition after the land under the building recently changed hands.
On June 29, the land underneath the Nakagin Capsule Tower building was sold to CTB GK, a limited liability company established only earlier that month. The sale included the land, the 1st floor retail space, 2nd floor office space, 16 capsules and two buildings behind the Capsule Tower. The seller was Nakagin Group, the developer of the building. The new owner promptly informed the chairperson of the apartment owners association of their intent to redevelop the site.
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment across greater Tokyo was 36,340,000 Yen in July, up 0.3% from the previous month and up 2.0% from last year. The average building age was 23.9 years.
According to the quarterly LOOK Report published by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), land prices in Japan’s major cities in the second quarter of 2018 have increased in 95 of the 100 surveyed locations. This is the the highest share in the history of reporting, beating a previous record of 91 locations seen in the previous quarter.
A gradual trend of land price growth continues across major cities. In particular, commercial land around transport hubs in regional centers has seen land prices go from no movement to a slight increase. In Tokyo, residential land prices in Bancho, Tsukuda / Tsukishima and Kichijoji have also shifted to an increasing trend.
On August 13, discount retail giant Don Quijote Holdings announced plans for a high-rise retail, office and hotel building to replace their former Shibuya Store in downtown Tokyo. Land readjustment work is scheduled to start next month with the new building scheduled for completion in April 2022.
Furniture company Nitori Holdings is entering the boutique hotel industry with the acquisition of a historic hot spring hotel in Hokkaido’s port city of Otaru. The sale price has not been disclosed.
Ginrinsou has long been considered one of Hokkaido’s leading onsen inns. The three-story ryokan sits on a prominent hilltop location overlooking Otaru’s port district and Ishikari Bay. An additional five-story concrete building was added to the ryokan at a cost of 400 million Yen, bringing the total floor space up to 3000 sqm. Nightly room rates at the 14-room ryokan are around 37,000 Yen per person.
According to the Real Estate Economic Institute, 2,986 brand new apartments were released for sale across greater Tokyo in July, up 12.3% from the previous month but down 12.8% from last year. This is the first time that the supply for the month of July has fallen below 3,000 units since 1992.
The average sale price was 61,910,000 Yen, down 0.8% from the previous month and down 5.7% from last year. The average price per square meter was 917,000 Yen, down 1.2% from the previous month and down 3.7% from last year.
On August 7, Hankyu Hanshin Holdings announced plans to open a 1,000 room hotel in Yodobashi Umeda Tower – a 35-storey redevelopment adjacent to the Yodobashi electronics store in Umeda, Osaka. The first 8 floors of the building will be retail, with the hotel located on floors 9 and above. The hotel is scheduled to open in 2020, with the lower-floor retail to open in late 2019. This will be the largest hotel based on room count in Osaka City.
A house and land in Tokyo’s Motoazabu address sold for 1.16 billion Yen (approx. 10.5 million USD) at a public auction last month. The sale, conducted by Osaka City, attracted seven bidders, including one well-known developer. The City had set a reserve price of 673,261,700 Yen.
On August 9th, Kanazawa City announced a record number of contracts between Kanazawa-style machiya townhouse owners and buyers and tenants in 2017. A total of 12 contracts were signed in 2017.
The program is run by the city through their Kanazawa Machiya Information Center, which connects owners and agents with people looking to utilize the historic homes.