Revision to voting ratios to make it easier to sell apartment building and land
On December 24, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced a revision to the Facilitation of Reconstruction of Condominiums Act which is intended to make it easier to sell off an older apartment building and land in order to speed up redevelopment.
Under the revision, the voting ratio to sell off the building and land will be reduced to 80% for kyu-taishin apartments that do not meet earthquake-resistant codes (the ratio was originally 100%). It is important to note that this revision does not apply to all apartments built before 1981. It only applies to those that failed an earthquake-resistant inspection.
At the end of 2013, there were 6,010,000 apartments across Japan. Of those, approximately 17% are in buildings built to the older earthquake codes (called kyu-taishin). The figures are higher for condominiums, with a third of condominium apartment buildings across Japan built to the older codes.
By April 2014, there were only 196 cases where kyu-taishin apartment buildings were redeveloped, accounting for just 1.4% of the total number of kyu-taishin apartments.Read more
Akasaka’s latest luxurious penthouse is for sale
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A spacious 3-Bedroom penthouse apartment in the recently completed Park Mansion Akasaka Hikawazaka condominium is up for re-sale.
Park Mansion Akasaka Hikawazaka was developed by Mitsui Fudosan Residential and completed in October 2014. The ‘Park Mansion’ series of apartments is the most prestigious brand on offer by Mitsui and is considered one of the top brands in Japan. There are just 36 apartments in the 13 storey building, and all apartments had sold out by the developer 8 months prior to completion.
The 168.63 sqm (1,814 sqft) apartment is one of just two apartments on the top floor of the building. The south-east and north-east facing corner unit has open views over the greenery of the housing compound of the US Embassy and out towards Ark Hills, the Ana Inter-Continental Hotel and Izumi Garden Tower. It has never been lived in and is in as-new condition.Read more
Abandoned ski resort in Niigata sold for 1.3 billion Yen
The overgrown and abandoned former Arai Mountain & Spa Resort in Niigata Prefecture has been purchased by Tokyo-based A. C Holdings for 1.3 billion Yen. The company, which is involved in construction and golf course development, plans to re-open the ski resort and target wealthy tourists from China and across Asia.
The Arai Resort was developed by Hideo Morita, eldest son of Akio Morita( the co-founder of Sony) and opened in 1993. Over 50 billion Yen was invested in creating a world-class health resort. In its first year, however, the resort ran into management difficulties and Morita’s relatives provided an additional investment of 23 billion Yen to prop up the company. Eventually the over-investment, poor management and low tourist numbers led to the closure of the resort in 2006.Read more
Denenchofu to lose landmark historic home
On December 17, 2014, the historic Suzuki Residence in Denenchofu 3 Chome was opened up to the public for a farewell tour before demolition.
At the open day, the current owner, who is the grandchild of Mr. Suzuki, spoke about their fond memories of the home. Over the years it had hosted family birthday parties, weddings and funerals, and has been the setting for several TV dramas. The 90-year old house, which has been registered as a Tangible Cultural Property, has been painstakingly cared for and is in beautiful condition.
The Suzuki Residence was built during the Taisho era for a German resident. It was later purchased by Mr. Suzuki for his son, who later returned from the war to to live in the house with his family. The architect is unknown, although some have suggested it might have been Kintaro Yabe, the designer of the Denenchofu Station Building, since the buildings are similar in style.
It is a 2-storey western-style home with a total floor area of 165 sqm. It sits on a large 928 sqm block of land which fronts onto Denenchofu’s gingko tree-lined main street.
The decision to demolish the home was not an easy choice by the owner. However, selling the property would prove to be difficult given the size of the land and the limited buyers in that price range. Average land prices in the Denenchofu 3 Chome area are currently around 1 million Yen/sqm, which would give the property a market price of around 930 million Yen*.
*Update: In April 2015, the new owner of the property (a developer) listed the land for sale for 1.12 billion Yen, or approximately 1,200,000 Yen/sqm. Under the terms of sale, the buyer is required to use the home builder designated by the seller and sign a construction contract within 3 months of purchase.
High inheritance taxes are another issue.Read more
Residential yields in Minato-ku - January 2015
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in January was 5.3%, down 0.6 points from the previous month and down 0.5 points from last year. The average gross yield across Tokyo was 6.8%, showing no change from the previous month but down 0.7 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 843,128 Yen/sqm as of January 1, up 1.2% from the previous month and up 14.1% from last year. The average asking price for land was 1,262,424 Yen/sqm, up 0.3% from the previous month and up 50.5% from last year.(*Note: January 2014 saw a temporary dip in land prices. Since the prices are based on listings on the Homes site, it is possible that some comparatively cheap land was listed which may have pulled the average down for that month.)Read more