Redevelopment voting ratios may be revised down to 2/3rds

Danchi

The government is considering revising the redevelopment voting ratio downwards for apartment buildings that form part of urban redevelopment projects.

Under the Urban Renewal Act, 100% of apartment owners must agree, in principle, before the building can be redeveloped. The government wants to reduce this ratio to a 2/3rd vote in favour, but only when the redevelopment includes some public component such as a park.

The revision will target the large-scale housing developments that were built during Japan’s period of rapid economic growth following WWII, and which are now in varying stages of deterioration. Residents, too, are ageing and it is hoped that new apartment buildings will attract younger families.Read more

by Zoe Ward

Mori Trust taking over abandoned resort in Okinawa

Sesoko Resort Okinawa 1

Mori Trust has acquired a 335,000 sqm block of beachfront land with a half-finished hotel on Sesoko Island in Okinawa and plans to open an internationally-branded resort by 2020. Sesoko Beach Project, a limited liability company registered in Tokyo, was the seller.

Back in 2005, Toshi Design System, through a special purpose company, started construction on a large-scale luxury resort on the site of a former golf course. The 30 billion Yen hotel was to include 360 rooms each over 100 sqm (1,076 sq.ft) in size, with room rates of around 70,000 Yen per night. It was scheduled to open in 2009.Read more

by Zoe Ward

Tokyo Apartment Sales in December 2015

Tokyo apartment sales dec2015

The following is a selection of apartments that were sold in central Tokyo during the month of December 2015:Read more

by Zoe Ward

City in Hokkaido to buy mid-century bank building

Former Bank of Japan Kushiro 1
The former bank shortly after completion in 1952. Image via Kushiro City Homepage.

Kushiro City in Hokkaido is moving ahead with plans to buy the former Bank of Japan Kushiro Branch in an effort to preserve the 63-year old building.

The city had earlier considered to converting the building for public use, but the estimated 1.5 billion Yen (12.4 million USD) repair bill proved too costly for the city's budget. However, if the city did not purchase the building there was a chance that it could be demolished. Ever since the Bank of Japan moved to a new location in 2013, local residents have petitioned for the preservation of the old building and had collected 10,000 signatures.Read more

by Zoe Ward

2015: The year in review

Let’s take a look back at Japan’s real estate market over the past 12 months.

Market Conditions

2015 remained a seller’s market with multiple offers made on properties, and popular listings selling out within days or weeks.

Supply was incredibly tight in the first half of the year. This goes for both existing properties and new construction. We have noticed a slight increase in new listings over the past few months, but at increasingly higher prices. Also a number of those new listings have been tenanted properties, which means they are sold with a tenant in place and cannot be inspected. These can only be purchased by investors, and can be a difficult sell. Transactions have also continued to climb, so a lot of the new supply is being met.

Demand for quality buildings is high, but we are seeing some price reductions on the low and mid-range properties as they start to reach their price ceiling.

Where is this demand coming from? Read more

by Zoe Ward

New apartment supply forecast to rise by 4.4% in 2016

The supply of brand new apartments to be released for sale in the greater Tokyo area in 2016 is forecast to reach around 43,000 units, up 4.4% from 2015.

Japan’s consumption tax rate will be raised to 10% from its current level of 8% in April 2017. This is expected to lead to a rush in last-minute demand from buyers seeking to lock in the purchase price at the lower tax rates. The deadline to lock in a new apartment under the lower tax rate will be for contracts signed up until September 30, 2016.

According to the Real Estate Economic Institute, the construction scandal concerning falsified data about building foundations has had less of an effect that originally anticipated, and is not expected to impact on forecasts for 2016.Read more

by Zoe Ward

Yokohama Station to see tallest building in 2021

Yokohama Tsuruya Project

Plans are firming up for a 180 meter tall high-rise residential tower near Yokohama Station specifically targeting foreign residents. This would be the first project to make use of the national government’s special allowance for residential building volume ratios that are available in Strategic Special Zones.

Draft plans have already received approval from the government and construction is scheduled to start in 2018, with completion in 2021.Read more

by Zoe Ward