Tokyo office vacancy rate rises for 2nd month
The office vacancy rate across Tokyo’s prime business districts increased for the second month in a row, with a 0.06 point increase to 1.56% in April. Chiyoda and Chuo wards saw vacancy rates shrink from the previous month. Chuo’s vacancy rate reached a new record low of 1.08%, down 0.06 points from March and down 0.94 points from April 2019.
Setagaya has the largest number of akiya (empty homes) in Japan
On a city/town/district level, Setagaya ward in Tokyo has the highest number of empty homes, or akiya, in Japan. According to the Ministry of Internal Affairs and Communications, there were an estimated 49,070 empty homes in Setagaya as of a 2018 survey, representing 10.4% of total housing stock. Neighboring Ota ward was in second place nationwide with 48,080 empty homes, and a 14.8% vacant house ratio.
Tokyo apartment discounts in April
We have been receiving more than a few inquiries from keen buyers looking to snag a bargain in the current market, and we have been monitoring the market very closely. The bad news is that while reported transactions have fallen a lot in April, the data from REINS shows that price negotiations on in the residential market appear to remain relatively unchanged from last year. This is in line with what we are seeing on the ground. There are a few big discounts here and there, but they remain outliers.
Mortgage stress on the rise
The Japan Housing Finance Agency (JHF) is reporting a surge in inquiries from borrowers who are struggling to make home loan repayments in the current crisis. As economic conditions worsen amidst the coronavirus pandemic a growing number of companies are laying off workers or reducing hours and pay. Household finances are being stretched to the limit, putting some borrowers in a precarious situation.
Japan’s high-rise apartment market from 2020 to 2024 onwards
There are currently 103,100 apartments in 258 high-rise buildings planned for completion across Japan from 2020 onwards, however, the coronavirus pandemic and nationwide state of emergency declared in April 2020 may see some construction projects delayed as a result. This is an increase of 8,009 apartments and 27 buildings from the previous report issued by the Real Estate Economic Institute in March 2019.
Tokyo Apartment Sales in April 2020
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of April 2020: