Apartment rents hit ceiling, serviced apartment building flipped within 6 months, and residents claim new high-rise to be defective. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Apartment rents hit ceiling
Accorsing to Tokyo Kantei, the average advertised monthly rent of a condo-style apartment in Tokyo’s 23 wards was 3,833 Yen/sqm in May 2021, down 0.8% from the previous month and down 0.3% from last year. Osaka City saw rents drop 0.3% from last year to 2,534 Yen/sqm, while Yokohama saw them rise by 1.0%. Over the past five years, rents in the 23 wards have increased by 16%.
Serviced apartment building flipped 6 months later
Tokyu Land and SMFL Mirai Partners have acquired the Somerset Azabu East Tokyo serviced apartment building from Daiwa House and A.D. Works Group. Ascott Residence Trust sold the 79-room building late last year for 5.9 billion Yen, having acquired it in 2003. Tokyu plans to convert it to SOHO and flexible office space, with the building to be sold after the conversion.
Potential defects discovered in high-rise project in Koganei
Apartment owners in a twin-tower high rise in Tokyo’s Koganei City are claiming that the building is defective. The 700+ unit project was completed in early 2019. A building assessment was ordered following noise complaints, resulting in a 44-page report indicating issues with drywall installation. The developer issued an apology to the apartment owners.
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