Sumitomo announces 100 billion Yen project for Ariake
New details have been released regarding Sumitomo’s plans for three high-rise towers in Ariake, Tokyo. Ariake Garden City (Ariake North 3-1 District Plan) is a 100,000 sqm site located just north of Ariake and Kokusaitenjijo Stations on a man-made island in Tokyo Bay.
Sumitomo plan to build apartments (City Towers Tokyo Bay), a hotel, commercial and office facilities. Planning approval is expected to be granted in March 2016, with construction starting on the first phase of the project in October 2016. The entire project is expected to be completed in 2026 and has an estimated project cost of around 102.8 billion Yen (837 million USD), including land acquisition.Read more
New apartment prices in greater Tokyo up 20%
2,757 apartments were sold, making the contract rate 78.7%. This is an increase of 7.6 points from the previous month and an increase of 2.1 points from last year.
The average new apartment price was 58,150,000 Yen, up 20.8% from the previous month and up 20.4% from last year. The average price per square meter was 829,000 Yen, up 22.1% from the previous month and up 21.4% from last year.
745 apartments in high-rise buildings (over 20 storeys) were offered for sale, up 65.9% from last year. The contract rate was 81.6%, down 2.8 points from last year.
The market appears to be in recovery, with the amount of new apartments released for sale finally returning to levels seen 12 months ago. The return is evident in Tokyo’s 23 wards, where there has been a number of same-day sellouts in high-priced buildings. Areas such as Chiba and Saitama, however, are suffering from sluggish demand due to high construction costs which are pushing prices past the budget of many home buyers. In Saitama Prefecture, the contract rate was 58.7%, down 14.6 points from last year.Read more
June 2015 rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,617 Yen/sqm in June, down 1.5% from the previous month but up 0.3% from last year. The drop in the monthly rent is considered to be caused by a smaller share of rental transactions in the Tokyo metropolitan area. The average apartment size was 59.50 sqm and the average building age was 19.0 years.
In the Tokyo metropolitan area, the average rent was 3,110 Yen/sqm, up 0.2% from the previous month and up 2.1% from last year. The average apartment size was 56.50 sqm and the average building age was 17.5 years.
In Tokyo’s 23 wards, the average rent was 3,239 Yen/sqm, up 0.3% from the previous month and up 2.0% from last year. The average apartment size was 55.90 sqm and the average building age was 17.0 years.Read more
Tokyo pushing for two new subway lines
On July 10, the Tokyo Metropolitan Government announced an additional five possible locations to be considered for new train lines. The five potential routes have been added to a total of 14 routes that the Tokyo believes should be ‘under consideration’ and will be submitted to the Ministry of Land, Infrastructure, Transport and Tourism at the end of July.
One of the new routes under possible consideration is a subway line that could link the Ariake district in Tokyo Bay with the Ginza district. Although it would be impossible to have a new line built in time for the 2020 Summer Olympics, during which several sporting events will be held in the bayside area, the area has been seeing an increase in the local population which could eventually warrant the need for rail access. A bus rapid transport (BRT) system is planned for the area with services tentatively scheduled to start in 2019, however a bus system may not be sufficient for passenger capacity requirements and could leave new residents with a congested and inconvenient transport system.Read more
Secondhand apartment sale prices reach new record in central Tokyo
According to REINS, 3,114 second-hand apartments were sold across greater Tokyo in June, up 3.5% from the previous month and up 10.7% from last year. This is the 3rd month in a row to see a year-on-year increase in transactions.
The average apartment sale price was 29,140,000 Yen, up 0.9% from the previous month and up 6.2% from last year. The average price per square meter was 453,300 Yen, up 0.1% from the previous month and up 6.6% from last year. The average building age was 20.26 years.
1,579 apartments were sold in the Tokyo metropolitan area, up 8.6% from the previous month and up 14.3% from last year. The average sale price was 35,670,000 Yen, down 1.4% from the previous month but up 4.5% from last year. The average price per square meter was 596,500 Yen, down 2.7% from the previous month but up 5.9% from last year. The average building age was 19.44 years.
Sale prices in central Tokyo reach new record high
Miyagi Prefecture’s vacancy rate set to rise
Local governments in Miyagi Prefecture are paying close attention to vacancy rate trends as demand for temporary housing following the Tohoku disaster is expected to be short-lived.
The prefecture has a vacancy rate of 9.4%, making it the lowest in Japan and the only prefecture with a single digit vacancy rate. The low number of vacant houses, however, can be largely attributed to a steep rise demand for temporary housing from residents displaced by the 2011 Tohoku disaster.
There are concerns that the vacancy rate will start to climb again as the public housing projects built for these residents are gradually completed.Read more