Local group wants to curb speculative investment in Kyoto apartments

The Parkhouse Kyoto Kamogawa Gosho-Higashi. 30% of the buyers have been Tokyo residents.

A citizen’s group in Kyoto is campaigning for the city to introduce regulations to curb the recent speculative buying of apartments in the history city. On January 22, the Kyoto Community Development Citizen Association submitted a proposal to Kyoto City’s Town Planning Department seeking counter-measures against an overwhelming increase in real estate prices.

The group is concerned that the property prices in the city, especially the price of new apartments, are reaching levels where they are no longer affordable for local Kyoto residents. To help regulate the speculative transactions, the group is requesting that the city designate areas as Land Price Surveillance Districts, which would require notification of land transactions.

In recent years, developers have been offering a number of relatively high-priced new apartment projects in the city. Many of the buyers are said to be from outside of Kyoto, such as Tokyo, and are buying for speculative purposes or for use as a holiday home. The vacant apartments provide little benefit to the neighbouring communities and shops. In early December 2015, a penthouse apartment in a luxury condominium currently under construction alongside Kamo River sold for 749 million Yen, making it the most expensive apartment to be sold in West Japan for the past 20 years. Approximately 30% of the buyers in this building were from Tokyo, and 20% were Kyoto residents.

Source: The Mainichi Shimbun, January 23, 2016.

 2,420 total views,  4 views today