Tokyo’s foreign resident population continues to fall, apartment rents remain stable, and a hot spring ryokan sells for 2.75 billion Yen. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Tokyo’s foreign resident population continues to decline
The total population in the Tokyo metropolitan area was 13,840,468 as of April 2021, down 25,443 residents from April 2020. However, the population of Japanese citizens in the capital increased by 7,440 over the same period, while the foreign resident population shrank by 32,883. In central Tokyo (Minato, Chiyoda and Chuo), the Japanese population increased by 1,906 over the past 12 months while the foreigner population decreased by 3,018. Minato’s foreigner population has shrunk by 11.2% over the past year, while Shinjuku saw a 9.6% decrease.
Tokyo apartment rents remain stable
According to Tokyo Kantei, the average advertised monthly rent of an apartment in Tokyo’s 23 wards was 3,862 Yen/sqm in April, down 0.2% from the previous month but up 0.2% from last year. Apartments less than 5 years old and those over 30 years old saw rents increase, while other age brackets saw rents decline. Osaka City has seen rents drop 2.4% from last year, while Yokohama City has seen a 1.8% rise.
Hoshino REIT buys Yamaguchi hot spring ryokan
Hoshino Resorts REIT will pay 2.75 billion Yen (approx. US$25 million) to acquire the 40-room Kai Nagato Ryokan in Yamaguchi Prefecture on June 1. The property was developed and opened Hoshino Resorts in March 2020 as part of their resort revitalization project, replacing the older Shirokiya Grand Hotel that once stood on the 5,500 sqm site. Operating ratios dropped to the 50% range during the first pandemic-related State of Emergency in April and May of 2020, but recovered to the 90% range in the second half of the year as the government promoted domestic travel.
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