Average rents up in Tokyo, down everywhere else
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,590 Yen/sqm in August, showing no change from the previous month but up 1.1% from last year. The average apartment size was 60.61 sqm and the average building age was 19.5 years.
In the Tokyo metropolitan area, the average rent was 3,177 Yen/sqm, up 1.0% from the previous month and up 4.5% from last year. The average apartment size was 57.68 sqm and the average building age was 17.5 years.
Average rents in Kanagawa, Saitama, greater Osaka, Hyogo and Aichi were down from last year.
In Tokyo’s 23 wards, the average rent was 3,314 Yen/sqm, up 1.0% from the previous month and up 4.7% from last year. The average apartment size was 57.13 sqm and the average building age was 17.0 years. Yokohama, Saitama City, Chiba City, Osaka City, Kobe City and Nagoya City all saw average rents fall from last year. Osaka City saw the biggest fall in rent with the average falling 5.5% from last year to 2,040 Yen/sqm.Read more
New apartment supply in Tokyo up from last year
According to the Real Estate Economic Institute, the average price of a brand new apartment released for sale in greater Tokyo in August was 58,720,000 Yen, down 1.4% from the previous month but up 3.3% from last year.
The average price per square meter was 824,000 Yen, down 3.1% from the previous month but up 6.3% from last year.
2,610 new apartments were released for sale, up 23.7% from last year, but down 45.5% from July. August is typically a slow month for the real estate industry due to the summer heat and holidays, so developers usually hold off on sales activities. 1,938 apartments were sold, making the contract rate 74.3%, up 4.7 points from last year.Read more
Standard land prices increase in major cities in 2015
Yesterday the MLIT released the standard land prices (kijun-chika) for Japan’s major cities and regional areas. Nationwide, land prices declined for the 24th year in a row, although the 0.9% decline in 2015 is down from the 1.2% drop seen in 2014.
Buoyed by growing foreign tourist numbers, redevelopment projects, an economic recovery and monetary easing, the three major cities of Tokyo, Osaka and Nagoya, saw commercial land prices rise by 2.3% (up from a 1.7% increase in 2014). Residential land prices in these cities grew by an average of 0.4% (down slightly from the 0.5% increase in 2014).
69.9% of the surveyed commercial locations in the three cities saw an increase in prices (up from 68.0% of locations in 2014), while 44.7% of residential areas saw an increase (compared to a 46.9% share in 2014).
The redevelopment around Nagoya Station in anticipation of the new maglev train, scheduled to start services between Tokyo and Nagoya in 2027, has led to a large increase in land prices. Some locations have increased by between 25 ~ 45%.
Commercial land prices in Omotesando up 20.2%Read more
Retro buildings popular with retail tenants
Although many retailers prefer newer construction, there are some stores in Japan that specifically look for the older, character-filled properties to complement their brand. Sterile retail space is being eschewed for pre-war or 1960s vintage buildings and homes that can be converted and renovated into trendy, one-of-a-kind spaces.
Cafe Conana, Jiyugaoka
In April 2015, Cafe Conana opened a branch in Jiyugaoka, Meguro-ku. The cafe is in an old terrace house that was completely renovated with exposed ceiling beams, and a light and bright interior. Dropped ceilings were removed to expose the skeleton of the house. Rafters were painted white, and natural wood has been used throughout.Read more
Record number of apartment sales in central Tokyo in August
According to REINS, 2,415 second-hand apartments were sold across greater Tokyo in August, down 14.0% from the previous month but up 14.0% from last year. This is the 5th month in a row to see a year-on-year increase in transactions.
August is typically a slow month for real estate sales due to the hot weather and summer holidays.
The average apartment sale price was 28,320,000 Yen, down 1.3% from the previous month but up 0.4% from last year. The average price per square meter was 448,200 Yen, down 0.8% from the previous month but up 2.6% from last year. The average building age was 20.44 years.
1,185 apartments were sold in the Tokyo metropolitan area, down 15.7% from the previous month but up 18.1% from last year. This is also the 5th month in a row to see a year-on-year increase in transactions. The average sale price was 35,020,000 Yen, up 0.7% from the previous month and up 0.4% from last year. The average price per square meter was 602,300 Yen, down 0.1% from the previous month but up 2.5% from last year. The average building age was 19.61 years.
Central Tokyo’s 3 wards:
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 142 second-hand apartments were sold, down 13.9% from the previous month but up 24.6% from last year. This is the highest number of transactions recorded for the month of August since record-keeping began in 2008, and is approximately 63% higher than the average seen between 2008 ~ 2012.
The average sale price was 51,650,000 Yen, down 4.5% from the previous month and down 7.5% from last year. The average price per square meter was 1,017,900 Yen, down 0.1% from the previous month but up 10.6% from last year. This is the third month in a row where prices have exceeded the 1,000,000 Yen/sqm level. The average building age was 16.27 years.Read more
Developer gives up on redevelopment plans near Sendai Station
Tokyu Land have abandoned redevelopment plans for the West Exit of Sendai Station due to low profitability forecasts. The land was acquired during the market peak in 2006~2007.
Tokyu sold their 80% share of the land under the Sakurano Department Store to a fund in December 2014. At the end of August 2015, they sold 1,095 sqm of land, which included the land under the Sendai Toyo Building and the site of the former Asahiya Building, to a separate fund for an undisclosed price. Earlier this year Tokyu had considered redeveloping the smaller site, but made a final decision to sell.Read more