Apartment bubble - Why new apartment prices are rising

Recent news reports have suggested that real estate prices in Japan are set to rise and that a property bubble is imminent. But how true are these reports?

The prices of brand new apartments in Japan's major capitals has certainly increased (up 3.0% over 12 months in greater Tokyo in March 2013). However, the main reason for the increase in price is not a property bubble, but an increase in construction costs.Read more

by Zoe Ward

Mori's latest apartments in Shibuya's Kamiyamacho neighbourhood

Luxury property developer Mori Building has completed construction of a stylish residential development in the exclusive Kamiyamacho neighbourhood in Shibuya.

Called 'Case' the six units were designed by Pritzer Prize-winning architectural firm SANAA (Sejima and Nishizawa and Associates).Read more

by Zoe Ward

New apartment supply to return to pre-Lehman levels in 2013

According to the Real Estate Economic Institute, the supply of new apartments offered for sale in greater Tokyo in March 2013 was 5,318 units - 48.4% higher than March 2012. Developers have been pushing forward their sales dates in order to capitalise on an expected last-minute rush before the first consumption tax increase hits consumers in 2014. 

The total supply of new apartments in 2013 is expected to exceed 50,000 units for the first time since 2007. In 2012, the supply was down 3.5% from the previous year to 46,754 apartments and the contract rate was 76.7%. The contract rate for March 2013 was 82.1%.Read more

by Zoe Ward

Latest population data: More over-65's and less foreigners

The Ministry of Internal Affairs and Communications (MIC) announced the latest data on Japan's population on March 16. The number of people aged 65 and over has exceeded 30,000,000 for the first time since record keeping began in 1950. Furthermore, those aged 65 and over exceeded the number of those aged 14 and below in every region across the country.Read more

by Zoe Ward

Prices up in Karuizawa, down in Yuzawa - polarization in Japan's resort market

Japan's resort areas are seeing a dramatic polarization of their property markets. Some areas, such as Karuizawa and Okinawa are seeing prices rise, while other areas are seeing year-on-year falls. Why is this happening?Read more

by Zoe Ward

Office vacancy rates in March - Miki Shoji

According to Miki Shoji's Office Report for March 2013, the vacancy rate in Tokyo's central business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya dropped by 0.01 points to 8.56%.

In Chiyoda-ku, the vacancy rate dropped 0.07 points to 6.59% as tenants began to move into recently completed Ochanomizu Sola City and existing buildings saw tenants combine their business operations in one space. Read more

by Zoe Ward

30+ year old apartments and houses growing in popularity

According to REINS the share of properties sold that are over 30 years old is growing. In 2012, the average age of an apartment sold in greater Tokyo was 18.97 years, 0.70 years higher than 2011. Apartments over 30 years old comprised 20.6% of total second-hand apartment sales - up from 18.20% in 2011. The average age of a house sold was 19.71 years, up 0.34 years from 2011. Houses over 30 years old comprised 18.5% of total second-hand house sales - up from 17.5% in 2011. Read more

by Zoe Ward