Tokyo office vacancy rate falls to 6 year low

According to MIki Shoji’s Office Report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.36% in January 2015, down 0.11 points from the previous month and down 1.82 points from last year.

The vacancy rate in brand new office buildings was 14.85%, up 1.45 points from the previous month and up 0.43 points from last year.Read more

by Zoe Ward

January 2015 rental data - Tokyo Kantei

January apartment rent Japan

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,545 Yen/sqm in January, down 0.7% from the previous month and down 1.1% from last year. The average apartment size was 60.03 sqm and the average building age was 19.7 years.

In Tokyo’s 23-ku, the average monthly rent was 3,180 Yen/sqm, down 0.5% from the previous month but up 1.1% from last year. This is the 3rd month in a row to see a month-on-month decline.  The average apartment size was 56.58 sqm and the average building age was 18.0 years.Read more

by Zoe Ward

Hope for Kamakura’s modernist museum

Museum of Modern Art Kamakura

One of Japan’s exemplary models of modern architecture - the Museum of Modern Art, Kamakura - now stands a chance at being saved from demolition after a recent structural analysis found that it could be reinforced against earthquakes.

The Kanagawa Prefectural Government is also in discussions with the landowner, the nearby Tsurugaoka Hachiman-gu Shrine, to seek an extension to the land lease.

In late 2013, it was reported that the prefecture decided against renewing the lease due to the high costs of maintaining the buildings and the anticipated costs of retrofitting. The prefecture announced plans to close the museum at the end of March 2016. Under the terms of the lease, any buildings were required to be demolished before returning the land to the Shrine.Read more

by Zoe Ward

Central Tokyo apartment prices up 6.9% from last year

According to REINS, 2,440 second-hand apartments were sold across greater Tokyo in January 2015, down 2.3% from the previous month and down 9.2% from last year. This is the 10th month in a row to see a year-on-year decline.

The average apartment sale price was 27,980,000 Yen, down 1.7% from the previous month but up 4.7% from last year. The average price per square meter was 437,300 Yen, down 2.6% from the previous month but up 5.3% from last year. The average building age was 19.51 years.

1,193 second-hand apartments were sold in the Tokyo metropolitan area, down 4.6% from the previous month and down 9.3% from last year. The average sale price was 33,220,000 Yen, down 5.3% from the previous month but up 1.3% from last year. The average price per square meter was 567,600 Yen, down 4.4% from the previous month but up 4.1% from last year. The average building age was 18.89 years.

In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), the average sale price was 48,030,000 Yen, down 16.2% from the previous month and down 1.4% from last year. The average size of an apartment sold in January shrunk by 10.3% from the month before, while the average building age was 4 years older, which may help explain the fairly large drop in price from the previous month. The average sale price per square meter was 933,000 Yen, down 6.6% from the previous month but up 6.9% from last year.Read more

by Zoe Ward

Empty school buildings to be converted under regional revitalisation program

Amidst a declining population, which has become particularly evident in regional communities, the Japanese government is considering plans to encourage the re-use of closed schools and empty buildings in the countryside.

Under the Building Standards Act, changing the use of a building may require that building to meet certain construction standards, such as fireproofing.  The proposed plan would be to make some requirements unnecessary if the building meets basic safety levels.

Empty school buildings and shopping malls lined with shuttered stores are becoming a common sight in Japan’s regional areas. To convert an old property into a hotel/inn or a restaurant, considerable expense may be required.Read more

by Zoe Ward

With Airbnb-style rentals on the rise, what are the potential legal issues?

Airbnb-style accommodation options in Tokyo, Osaka, Kyoto and other popular tourist destinations are growing, and with rising foreign tourist numbers, more people may be considering renting out their spare room or house on an accommodation site. However, in some cases this practice might violate the Inns and Hotels Act. Local governments are scrambling to find ways to get a grasp on the situation and find ways to monitor and regulate the practice.Read more

by Zoe Ward

Residential yields in Minato-ku - February 2015

Tokyo and Minato Yields

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in February was 5.2%, down 0.1 points from the previous month and down 0.2 points from last year. The average gross yield across Tokyo was 6.8%, showing no change from the previous month and down 0.6 points from last year.

The average asking price of a second-hand apartment in Minato-ku was 884,371 Yen/sqm as of February 1, up 4.9% from the previous month and up 16.4% from the previous year. The average asking price for land was 1,254,242 Yen/sqm, down 0.6% from the previous month but up 17.0% from last year.Read more

by Zoe Ward