Japan's commercial land prices stop falling for first time in 7 years

Iwaki City Izumimoegidai
Izumimoegidai, Iwaki City.

On March 18, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the 2015 Chika-koji land prices for Japan. The nationwide average for commercial land prices saw no change from last year, ending a seven year streak of declining prices and indicating a possible recovery.

Residential land prices dropped by 0.4%. This was the 7th year of consecutive decline, although the rate of decline has been shrinking.

In Tokyo, Osaka and Nagoya, 70% of the surveyed commercial land sites saw an increase in prices, while 70% of the locations in regional areas saw a decline.

The Izumimoegidai neighbourhood in Iwaki City, Fukushima Prefecture, saw the highest increase in land prices in Japan with an increase of 17.1% from last year. The top 10 residential land price increases were all in Iwaki City, which has been seeing an influx in demand from people who were displaced after the 2011 Tohoku disaster.Read more

by Zoe Ward

Tokyo office vacancy rates reach 6 year low

According to Miki Shoji’s Office Report, the vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.31% in February, down 0.05 points from January and down 1.70 points from last year. This is the lowest level seen since January 2009 and is the 20th month in a row to see an improvement in vacancy rates.

The vacancy rate in brand new office buildings was 29.31%, up 14.46 points from the previous month and up 9.66 points from last year. A large-scale office building was completed in February, which added to the supply for the month. Read more

by Zoe Ward

Rubber recall may affect high-rise buildings with base-isolation systems

On March 13, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced that a rubber product manufactured by Toyo Tire & Rubber and used in the construction of base-isolated buildings does not meet national standards. Although the product was approved by the MLIT, the data was falsified by the product maker. The MLIT cancelled the certification on March 13.

Toyo president Takuji Yamanoto apologised at a press conference held on the same day. An apology was also posted on the company’s website.

The rubber has been used in 55 buildings across Japan, including apartment buildings, government buildings and hospitals. Five buildings are in Tokyo and six are in Kanagawa Prefecture. The MLIT has identified several of the affected buildings:Read more

by Zoe Ward

New apartment prices in Tokyo at highest level in over 5 years

The Parkhouse Nishishinjuku Tower 60 1
The Parkhouse Nishishinjuku Tower 60 accounted for almost a third of the new apartment sales in the Tokyo metropolitan area in February.

According to the Real Estate Economic Institute, 2,598 brand new apartments were released for sale in greater Tokyo in February, up 54.7% from the previous month but down 2.0% from last year. This is the lowest level seen for the month of February since 2009.

1,935 apartments were sold, making the contract rate 74.5%, down 0.4 points from the previous month and down 6.1 points from last year.

The average new apartment price was 56,960,000 Yen, up 27.9% from the previous month and up 12.5% from last year. The average price per square meter was 812,000 Yen, up 27.1% from the previous month and up 14.7% from last year.

699 apartments in high-rise buildings (over 20 storeys) were offered for sale, up 78.3% from last year. The contract rate was 87.3%, down 0.5 points from last year.Read more

by Zoe Ward

February 2015 rental data - Tokyo Kantei

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,626 Yen/sqm in February, up 3.2% from the previous month and up 2.5% from last year. The average apartment size was 59.54 sqm and the average building age was 19.0 years.

In Tokyo’s 23-ku, the average monthly rent was 3,201 Yen/sqm, up 0.7% from the previous month and up 1.7% from last year. The average apartment size was 56.58 sqm and the average building age was 17.2 years.Read more

by Zoe Ward

Iseya Pawnshop sold to University

Bunkyo Iseya Pawnshop 1

The owner of the historic Iseya Pawnshop in Bunkyo-ku, Tokyo, signed a contract of sale with Atomi University on March 11. The price has not been disclosed, although some reports suggest it sold for around 130 million Yen (1.07 million USD).

The property includes a 2-storey warehouse dating from the 1850s ~ 1860s, a tatami room dating from 1890 and a shophouse dating from 1907. The pawnshop operated from 1860 to 1982, and was mentioned in author Ichiyo Higuchi’s writings. The three buildings were registered as Tangible Cultural Properties in 2003.Read more

by Zoe Ward

Central Tokyo apartment transactions reach record high for February

According to REINS, 3,292 second-hand apartments were sold across greater Tokyo in February, up 34.9% from the previous month but down 0.6% from last year. This is the 11th month in a row to see a year-on-year decline, although the rate of decline is the lowest seen so far.

The average apartment sale price was 29,260,000 Yen, up 4.6% from the previous month and up 8.7% from last year. The average price per square meter was 450,000 Yen, up 2.9% from the previous month and up 8.0% from last year. The average building age was 19.33 years.

1,572 second-hand apartments were sold in the Tokyo metropolitan area, up 31.8% from the previous month but down 4.1% from last year. The average sale price was 36,410,000 Yen, up 9.6% from the previous month and up 10.7% from last year. The average price per square meter was 605,900 Yen, up 6.8% from the previous month and up 11.3% from last year. The average building age was 18.37 years.

In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 187 apartments were sold, up 50.8% from the previous month and up 8.1% from last year. This is the highest number of transactions in February since REINS began recording data in 2008.Read more

by Zoe Ward