According to REINS, 2,641 second-hand apartments were reported to have sold across greater Tokyo in January 2018, down 12.3% from the previous month and down 7.7% from last year. The average sale price was 33,590,000 Yen, up 1.2% from the previous month and up 7.0% from last year. The average price per square meter was 516,000 Yen, down 0.6% from the previous month but up 4.6% from last year. This is the 61st month in a row to see a year-on-year increase in sale prices.
The Nihon Keizai Shimbun morning paper has suggested that the post-olympic future of Tokyo’s Athletes Village, located on a man-made island in the bay, seems uncertain as the city looks to scale back plans for the bus rapid transit (BRT) system.
Without adequate transport links, one major developer reported that the the potential salability of the 5,600+ condos to be built in the village looks grim.
The Athletes Village will be converted to a mix of rental and condo-style apartments after the 2020 Summer Olympics. The 18 hectare site will have 24 buildings containing over 5,600 apartments and housing over 10,000 residents. Over 4,000 of the apartments will be put on the market for sale, with the remainder to be held as rental-only units.
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment across greater Tokyo was 35,770,000 Yen in 2017, up 2.9% from 2016 and the fourth year in a row to record a year-on-year increase.
In the Tokyo metropolitan area the average asking price was 48,250,000 Yen, up 1.3% from 2016. This is the highest level seen since 1994. This is being supported by a number of investors buying apartments off-the-plan and then listing them for resale at prices higher than what they paid for them.
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.
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).