Online sale transactions approved from April
The real estate transaction process in Japan is about to join the 21st century as the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has approved the use of teleconferencing to complete a key part of the process from April.
Osaka gets rosenka land value revision as pandemic hits shopping districts hard
Japan’s National Tax Agency (NTA) has decided to revise the rosenka land tax valuations downwards by 4% in three districts in Osaka to reflect the drop in land prices. This is the first time outside of a major disaster that the values have been revised since the system was introduced in 1955. Osaka, which has been hit hard by the tourism downtown, is the only city in Japan to receive this special adjustment.
New apartment price in greater Tokyo hits 30-year high in 2020
The number of brand-new apartments released for sale across greater Tokyo in 2020 hit the lowest level in 28 years after the coronavirus pandemic saw showrooms shuttered and developers delay sales. A total of 27,228 apartments went on the market, down 12.8% from 2019. Sales are expected to recover in 2021 with 32,000 units forecast to be supplied.
Quick real estate news summary for the week
Ginza Six sees 20 retail tenants depart, only 22% teleworking, and larger apartments in Tokyo see rents climb 4.9%. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Tokyo apartment sale prices increase for 8th year in a row
In 2020 the average sale price of an existing apartment across greater Tokyo saw a year-on-year increase for the 8th consecutive year. According to REINS, the average sale price was 551,700 Yen/sqm, up 3.2% from 2019. Sale prices have increased by 44.5% over the past 8 years.
Tokyo apartment prices from 1992 to 2020
I want to share an interesting chart below showing the change in existing (not brand new) apartment prices from 1992 to 2020.
Tokyo office tower could be up for grabs for US$2.9 billion
Advertising and public relations giant Dentsu Group is considering selling their head office building in Shimbashi, Tokyo. With an estimated price somewhere around 300 billion Yen (approx. US$2.9 billion), this could end up as Japan’s most expensive single-building sale. Several potential buyers are apparently already lined up.