New apartment prices in Sapporo at record high

Sapporo Apartment Prices

The average price of a brand new apartment in Sapporo, Hokkaido, reached 32,082,000 Yen in 2013 - a level not seen since Japan’s bubble economy in the late 1980s. The rising prices have been brought on by the increasing cost of construction, an increase in the consumption tax rate which caused some last minute buying and an expansion in the tax reductions on home loans.

Industry insiders are expecting prices to continue to grow, but some are worried that the market could cool down if prices become unaffordable. Read more

by Zoe Ward

Tohoku’s traditional homes slowly vanishing

Sendai Minamisanriku kominka
A 309-year old tsunami-hit kominka in Minamisanriku, Miyagi.

Repair bills up to 100 million Yen or more

Yoichi Haryu, 57, owns a 2-storey home and storehouse in Wakabayashi-ku, Sendai City. The buildings date back to the late Meiji ~ early Showa era. The 2011 earthquake caused the beams to twist and bend and the wooden posts to twist and come unstuck.Read more

by Zoe Ward

How Japan's current property market differs from the 2007-2008 mini-bubble

In 2013, Japan’s real estate market began to awaken after a long slumber. This was later confirmed in March 2014, when the latest data on assessed land values (chika-koji) showed that commercial and land values in Tokyo, Osaka and Nagoya rose for the first time in six years.

Many real estate experts are suggesting that the real test, however, will be whether Lone Star Funds can offload the Meguro Gajoen banquet facility in Tokyo for the minimum asking price of around 110 billion Yen. Recent reports suggest that the Government of Singapore Investment Corporation are close to acquiring the property for 134 billion Yen.

Tokyo’s leading indicator of a market recovery can be seen in the Ginza district. With an assessed land value of 29,600,000 Yen per square meter, the land underneath the Yamano Music Ginza Store is the most expensive commercial land in Japan. It increased in value by 9.6% from the year before. Five of the ten commercial land survey sites with the highest gain in land values were located in Ginza.Read more

by Zoe Ward

Vacancy rates by apartment building in Tokyo - April

The following is a list of apartment buildings in central Tokyo and their estimated vacancy rates in April:Read more

by Zoe Ward

Govt wants cheaper accommodation for foreign tourists

The Japanese Government is working towards making it easier for vacant apartments in urban areas to be let out as cheap short-term rentals to foreign tourists. The target areas lie within the recently announced National Strategic Special Zones. 

The goal is to provide cheaper accommodation options for foreign visitors which will encourage them to stay longer.Read more

by Zoe Ward

Earthquake insurance premiums set to rise by as much as 30%

From July 2014, earthquake insurance premiums are set to rise by an average of 15.5% across Japan, with some areas seeing a price hike of as much as 30%.

The reason for the increase is due to expectations of another major earthquake that could affect the country in the future. Following the 2011 Tohoku disaster, insurers were left with nearly 1.2 trillion Yen  in claims. This has severely drained the reserve fund. Read more

by Zoe Ward

Secondhand apartment prices in March - Tokyo Kantei

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 41,480,000 Yen in March, up 0.1% from the previous month and up 5.8% from March 2013. This is the fourth month in a row to see a month-on-month increase, although the rate of growth has reduced. The average apartment age was 20.9 years, up 0.4 years from the previous month.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 57,220,000 Yen, up 0.7% from February and up 11.1% from last year. The average apartment age was 21.0 years, up 0.4 years from the previous month.Read more

by Zoe Ward