Quick real estate news summary for the week

Central Tokyo apartment asking prices hit new record high, new apartment supply drops 43%, and Omotesando retail flipped at 10% markup. 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 on record

According to Tokyo Kantei, the average asking price of a 70 sqm apartment in Tokyo’s 23 wards exceeded 60 million Yen in January, reaching 60,410,000 Yen. This is a 0.7% increase from the previous month and a 6.7% increase from January 2020. It’s also the 7th month in a row to see a month-on-month increase. There are signs of the market moving back into a price growth phase in the 23 wards as inventory drops and price discounting becomes rarer.  In Tokyo’s central six wards of Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya, the average asking price increased by 1.4% from the previous month to a record high of 87,860,000 Yen. This is a 7.8% increase from January 2020 and the highest level since Tokyo Kantei began collecting data in 2002.

New apartment supply drops 43% in Tokyo 23 wards

According to the Real Estate Economic Institute, a total of 1,325 brand new apartments were released for sale across greater Tokyo in January, down 82.0% from December but up 7.1% from January 2020. The contract ratio was 68.1%, up 5.5 points from the previous month and up 4.9 points from last year. Supply in Tokyo’s 23 wards dropped 43.5% from January 2020 to 415 units, while the contract ratio was 64.6%. Kanagawa Prefecture saw supply jump 113.5%, Saitama saw 167.8% and Chiba saw a 132.7% increase in supply. For high-rise buildings (over 20 floors), just 176 units in 12 buildings were supplied, down 56.1% from last year. The contract ratio was 79.0%.

Omotesando retail resold at 10% markup

Takara Lebel Real Estate Investment Corporation is selling the trust beneficiary rights to the Almost Blue retail building in Omotesando for 7.21 billion Yen (approx. 68 million USD). The company paid 6.52 billion Yen to acquire the rights in September 2019. The three retail buildings have a total lettable floor area of 1,930 sqm and sit on a 1,186 sqm block of land. The five tenants provide a gross rental revenue of 274 million Yen per year, and the property was fully leased as of August 2020.

 1,364 total views,  9 views today