New apartment supply in April down 40%

According to the Real Estate Economic Institute, 2,473 new apartments were released for sale across greater Tokyo in April, down 46.7% from March and down 39.6% from April 2013. This is the third month in a row to see a year-on-year drop in the supply of new apartments.

1,848 apartments were sold, making the contract rate 74.7%. This is 5.1 points lower than the contract rate in March and 3.5 points lower than last year. Meanwhile, 2,785 secondhand apartments were sold during the month, down 30.3% from March and down 10.7% from last year. Read more

by Zoe Ward

Briton arrested for running illegal lodgings in Tokyo

Adachi Illegal Hotel

A British expat was arrested on May 16 for operating a short-stay hotel without a proper license. The 28-year old wanted to offer cheap accommodation for foreign tourists and rented out rooms and bunk-beds in a share-house in Adachi-ku.Read more

by Zoe Ward

Secondhand apartment transactions drop 30.3% in April but prices continue to rise

According to REINS, 2,785 secondhand apartments were sold across greater Tokyo in April, down 30.3% from the previous month and down 10.7% from April 2013. 

While the number of transactions saw a steep drop, actual sale prices have continued to increase. The average sale price across greater Tokyo was 26,880,000 Yen, up 0.9% from the previous month and up 5.2% from last year. The average price per square meter was 424,000 Yen, up 1.8% from the previous month and up 7.7% from last year.Read more

by Zoe Ward

Exposed asbestos still a concern across Japan

Sprayed asbestosAccording to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) there are 15,972 large-scale privately-owned buildings across Japan with asbestos sprayed insulation on the ceilings and walls. Of those, only 30%, or 4,767 buildings have had the asbestos either removed or treated.

While the number of buildings with exposed asbestos has dropped by about 14% since 2005, the MLIT is urging the owners of such buildings to take action.Read more

by Zoe Ward

Groundbreaking ceremony for Japan’s first 60-storey apartment building

Nishi Shinjuku 60 Storey Apartment Tower 1

Developers of a 60-storey apartment building in Shinjuku held a groundbreaking ceremony on May 12.

The high-rise condominium will be the tallest apartment building in Japan (based on the number of floors) when complete in 2017. At 208.97m tall, it will be just 43cm shy of the tallest apartment building in the country - The Kitahama in Osaka.Read more

by Zoe Ward

How to avoid dodgy construction work

On February 1, Mitsubishi Jisho Estate announced that they had discovered a construction fault with a luxury condominium complex they were developing in Minami Aoyama, Tokyo. A short while later they announced plans to demolish and rebuild the 86-unit building.

In March, it was reported that Sekisui House found some construction issues with a 30-storey high-end condominium under construction in Shirokane. Concrete pillars were found to have no rebar and are being replaced. No construction delays are expected.

In early April, Mitsui Fudosan Residential announced that Park Tower Shinkawasaki would be partially demolished and rebuilt after the lower floors were starting to crack under pressure from floors above. Construction of the 47-storey tower began in November 2013 and was scheduled for completion by March 2015.

With the two-stage increase in the consumption tax, shortage in labour, growing construction costs and high demand for new apartments, could we see more and more of these cases?Read more

by Zoe Ward

Residential yields and vacancy rates in Minato-ku - May 2014

Tokyo apartment yields May 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in May was 5.3%, down 0.1 points from April. The average gross yield across Tokyo was 7.1%, down 0.1 points.Read more

by Zoe Ward