Apartment list prices in central Tokyo reach highest level in recent history, Ginza retail takes a hit, and new residential rental project to include exclusive co-working space. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Central Tokyo apartment asking prices hit highest level since 2002
According to Tokyo Kantei, the average asking price of a 70 sqm apartment in central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Shibuya, Bunkyo) was 84,110,000 Yen in July, up 1.4% from the previous month and the highest level since the organisation began recording data in 2002. Prices are currently up 6.9% from July 2019 and up 11.5% from July 2018. The asking price across Tokyo’s 23 wards increased by 1.0% to 57,210,000 Yen. Kanagawa and Saitama prefectures both saw prices fall by 0.2%.
Apartments with their own share office
Under their new The Parkhabio SOHO brand, Mitsubishi Jisho Residence is developing a rental apartment building in downtown Tokyo that will have its own co-working office space for residents. Located in Kanda, residents of the 13-story, 49-unit will have 24-hr free access to a 60 sqm open-office with meeting room, conference tables, and desks.
Ginza retail real estate taking a hit
Ginza’s commercial vacancy rate currently sits around 2.2%, but one local real estate brokerage is expecting it to hit as high as 7% if soon-to-be-vacant spaces are not filled. Most landlords are advertising vacant retail at the same rates as pre-corona, but ‘sure-thing’ tenants are given some concessions such as reduced rent for the first few months of a lease. Cushman & Wakefield reported a 5% drop in retail rents in Ginza in the second quarter of 2020, compared to the same quarter in 2019.
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