Land in Tokyo Disney Resort sold for 9.3 billion Yen

Oriental Land Co., Ltd. have acquired a 23,000 sqm site within the Tokyo Disney Resort for 9.3 billion Yen (404,350 Yen/sqm). The seller is the Dai-ichi Life Insurance Company - a major shareholder in Oriental.Read more

by Zoe Ward

Mizuho reducing home loan interest rates to 0.55%

In an effort to attract borrowers looking to purchase before the increase in the consumption tax rate, Mizuho Bank announced that they will be lowering their prime interest rate on their 2-year fixed-rate mortgage from its current level of 0.95% to 0.55%. The ultra-low interest rate campaign will be offered until the end of March 2014. It is possible that other banks will soon follow.

Mizuho and two other banks have also lowered the prime rates on their 3-year fixed-rate mortgages to 0.60%.

Source: The Nikkei Shimbun, January 9, 2014.

by Zoe Ward

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

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in January was 5.8%, down 0.2 points from December. The average yield across Tokyo was 7.5%, down 0.1 points from the previous month.

The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 738,929 Yen/sqm as of January 1, up 3.27% from the previous month. The average asking price for land was 839,050 Yen/sqm, down 21.7% from the previous month. Read more

by Zoe Ward

What can cause an apartment's value to fall after purchase?

The following is a list of some negative factors that can cause an apartment's value to fall over time. Some of these points may impact resale value more than others. 

The negatives:

  • Proximity to unpleasant facilities. Eg. a cemetery, crematorium, place of adult entertainment, garbage incineration plant, gas tank, factory dealing with hazardous materials, sewage treatment plant, gas or petrol station, or a warehouse with large vehicles coming and going. Properties near something undesirable may be relatively cheap to begin with, and a buyer might think they can put up with the surroundings if it means they can get a good bargain. But what happens when they want to sell the apartment down the track? Are future buyers going to want to put up with the same thing, or will they also be expecting a bargain price? Read more

by Zoe Ward

Government plans to nationalise 280 uninhabited islands

The Japanese government is embarking on a plan that could result in the nationalisation of 280 privately owned islands. 

A survey of 400 islands determined to be of importance to the protection of Japan's borders found that 350 were uninhabited. The identity of the owners of 280 of those islands is unknown. Under the civil code, land that has been abandoned and without an identifiable owner can revert to state ownership. Eg. in the case where the owner has died without any heirs. Read more

by Zoe Ward

Takashimaya to acquire two stores in Tokyo

Takashimaya Times Square
Takashimaya Shinjuku Store / Takashimaya Times Square

Takashimaya announced that they will acquire the remaining share in the Takashimaya Shinjuku Store from Tokyu Land for 105 billion Yen. There are also plans to acquire full ownership of the Tachikawa Takashimaya building and land from the Mitsubishi UFJ Trust and Banking Corporation for 12 billion Yen. Takashimaya already owns part of these properties through  a subsidiary.Read more

by Zoe Ward

Proposed tax breaks to encourage redevelopment of old apartment buildings

The government is considering a number of tax breaks to encourage the redevelopment of ageing apartment buildings across Japan.

Some of the proposed tax breaks include:

  • Lowering the capital gains tax from 20% to 14% for apartment owners if they sell the entire building and land
  • Eliminating the real estate acquisition tax when the building association buys the apartments from individual ownersRead more

by Zoe Ward