According to the Real Estate Economic Institute, 2,659 new apartments were released for sale across greater Tokyo in June, up 8.0% from the previous month and up 16.4% from last year. The average sale price was 62,440,000 Yen, up 3.5% from the previous month and up 10.7% from last year. The average price per square meter was 928,000 Yen, 3.7% from the previous month and up 10.5% from last year.
Although Tokyo’s Marunouchi and Otemachi business district has been seeing multiple skyscrapers go up in recent years, one vintage building from the 1950s has been faithfully protected by its owner.
The 9-storey Otemachi Building built by Mitsubishi Estate in 1958 celebrated its 60th birthday this April. It served as their headquarters until last year when they moved across the street to the recently completed 140 meter tall Otemachi Park Building.
According to REINS, 3,317 second-hand apartments were reported to have sold across Greater Tokyo in June, up 19.1% from the previous month but down 0.5% from last year. The average sale price was 33,200,000 Yen, up 0.5% from the previous month and up 5.0% from last year. The average price per square meter was 519,000 Yen, up 1.6% from the previous month and up 4.6% from last year. This is the 66th month in a row to record a year-on-year increase in sale prices.
A town planning decision for the Nishi Shinjuku 3 Chome West District Redevelopment is expected sometime in February or March 2019. The project includes two high-rise residential towers containing approximately 3,200 apartments, which would make it the largest twin-tower development in Japan based on total floor size and unit count.
The Tokyo government is aiming to have the No. 2 Arterial Road completed by 2022. This road will connect the man-made islands of Kachidoki, Harumi, Shin-Toyosu and Ariake with Shimbashi and provide more convenient access for trucks to access the new fish market and logistics facilities on the islands.
The opening of the road will be two years later than originally planned due to the delayed recreation of the Tsukiji Fish Market to Shin-Toyosu island. Part of the No. 2 road will need to pass through the fish market’s old location in Tsukiji, which means buildings will need to be demolished.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released their 2018 White Paper on Land for the Greater Tokyo Area on June 8. This year’s report covered the growing problem of vacant homes.
The vacant home issue in Japan refers to unused, idle homes and land in Japan and it is important not to confuse it with rental vacancy rates.
Vacant homes across Greater Tokyo have increased by 43% over the 10 years to 2013, with Ibaraki, Tochigi, Gunma and Yamanashi prefectures seeing a 62% increase, and Saitama, Chiba and Kanagawa seeing a 52% increase. Tokyo saw a 7% increase.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of June 2018:
La fuente Daikanyama, a low-rise retail complex in the heard of the Daikanyama district, will soon be demolished to make way for an apartment building. The retail mall will close in July 2018.
Central Tokyo’s population growth forecasts are causing local governments to take a closer look at development guidelines in order to alleviate strains on schools and childcare facilities.
Koto ward has been struggling with a shortage of schools for many years. In 2002 they introduced a 1.25 million Yen levy per apartment, payable by developers, on apartment buildings with over 30 apartments, with the funds going towards the expansion or construction of schools. In 2018, the developer of a 1,200-unit complex donated a school site to the ward in lieu of the 1.5 billion Yen levy.
Nevertheless, Koto is not able to keep up with the apartment construction boom and growing population.
Suginami Ward in Tokyo is budgeting up to 1 billion Yen for the restoration of the 91-year old Tekigaiso Villa. The traditional Japanese home was once the private residence of former Prime Minister Prince Fumimaro Konoe. The property, which includes 6,000 sqm of land and gardens, was acquired by Suginami in February 2014 for 3.1 billion Yen (approx. 30 million USD at the time).