Mitsubishi Jisho Residence have teamed up with Jones Lang LaSalle to market the remaining units in The Parkhouse Shinjuku Tower to buyers in Singapore. On three days in November, Mitsubishi held a sales event at the Conrad Hotel in Singapore to woo investors. 140 investors attended the seminars and 10 apartments were sold, with further negotiations underway on additional units.
Doris Tan, head of Residential International Projects at Jones Lang LaSalle, said that when asked by her clients whether she will be showcasing any Tokyo projects, she “used to tell them that it was impossible because Tokyo properties are usually sold by blocks in the international market, and unless you’re an institutional investor with deep pockets, there’s very little chance of getting hold of assets in Tokyo.” She also said that “to date Japan has only sold domestically and not internationally and there has been no chance for individuals to invest unless for large commercial building/s.”
[Editor’s note: this is incorrect as foreign buyers can purchase single apartments both new and old, land and houses across Japan without any restriction, and have been doing so for a long time].
Tan believes this offer provides a good opportunity for investors to diversify their portfolio, adding “with prices in [the] Tokyo residential market stagnant for 20 years, there is only one way to go, and that is up.”
JLL said the trial seminars were a huge success and they plan to market more Tokyo apartments to Singaporean buyers in the future.
About The Parkhouse Shinjuku Tower
The 20-storey residential building was completed in January 2012. There are a total of 298 units ranging in size from 48.07 ~ 107.76 sqm. The average asking price is 950,000 ~ 1,000,000 Yen/sqm, but it has been 11 months since completion so the developer may be accepting discounts on the last remaining units.
If buying as a rental investment, JLL has estimated the gross yield to be just 4%, with a net yield of 3.5%. This yield, while considered too low for local investors, is just below average for a recently built 1 ~ 2 bedroom apartment in central Tokyo.
Taiwanese real estate agencies have also been trying to market apartments in this building to buyers in Taiwan.
It is a 6 minute walk from Nishi-Shinjuku Station, or a 15 minute walk from Shinjuku Station if you want to brave the world’s busiest train station.
A comparable property in the immediate area is Sumitomo’s “La Tour Shinjuku Grand” built in 2011 with an average asking price of 1,054,000 Yen/sqm.
Additional Editor’s Note:
This is not the first time that developers have sought to sell their unsold stock to Singaporean investors as a renovated building in Akasaka (Rex Akasaka Residence, formerly Glen Park Akasaka) was also marketed through property seminars in 2011.
Note to any foreign buyers out there: if you contact an expat sales brokerage in Japan, they should be able to introduce you to any properties both new and old on the market in Japan. Make sure to check if your agency is working in your best interest as a buyers agent, or whether they represent the seller. It is also strongly recommended that you inspect any apartment in person before signing a contract.
The Sankei Shimbun, November 28, 2012.
The Edge Singapore, November 12-18, 2012.
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