JAPAN PROPERTY CENTRAL K.K.

Tokyo apartment sales in November 2014

December 2, 2014All,Tokyo

Tokyo apartment sales Nov 2014

The following is a selection of apartments that were sold in central Tokyo during the month of November 2014:Read more

Land prices up in 83% of locations - MLIT LOOK Report

December 1, 2014Tokyo Land Prices,Tokyo Office MarketLand,Office/Retail News & Information,Real Estate News,Rental Market,Market Information,All,Osaka,Nagoya,Tokyo

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the land price movements across Japan for the third quarter in 2014 (July 1 ~ October 1).

According to the Chika Look Report, 124 locations (83% of the total) saw an increase from the previous quarter, and 26 locations (17% of the total) saw no change. For the first time since this survey began in late 2007, none of the 150 survey sites saw a decrease in prices. Of the 124 locations to see a price rise, 122 locations saw prices rise between 0 ~ 3%, while 2 locations (Ginza and Shinjuku 3 Chome) saw prices rise between 3 ~ 6%.

Strong investor demand caused by monetary easing, as well as demand for apartments in areas with convenient access have helped to sustain the price growth.

In greater Tokyo, 58 locations (89% of the total) saw land prices increase, while the remaining 7 locations (11%) saw no change. In greater Osaka, 30 locations (77%) saw prices increase, wile 9 locations (23%) saw no change. In Nagoya, all 14 locations saw prices increase.Read more

by Zoe Ward

Same-day sellout in The Parkhouse Higashi Ginza

November 28, 2014New Apartments in Tokyo,Ginza Real Estate,Ginza Apartments,The Parkhouse Higashi GinzaNew Construction,Real Estate News,All,Tokyo

The Parkhouse Higashi Ginza 1

All 28 apartments offered during the first round of sales in Mitsubishi Jisho Residence’s The Parkhouse Higashi Ginza sold out on the same day.

The 13-storey apartment building is located a 1 minute walk from Shintomicho Station and is 700 meters from Ginza’s Chuo Dori Street. Apartments range in size from 70 ~ 81 sqm (753 ~ 872 sqft) and are all 3-bedrooms. Prices ranged from 74 ~ 108 million Yen (640,000 ~ 920,000 USD), with an average price of around 1,240,000 Yen/sqm.

The sales office received 1,587 inquiries and had 276 groups visit the showroom. Each apartment received an average of 1.9 purchase applications, with the most popular apartment receiving 5 applications. The lucky buyers were selected via a lottery-type system.Read more

by Zoe Ward

Mitsui starts work on Nihonbashi 2 Chome Redevelopment

November 27, 2014Nihonbashi,Nihonbashi TakashimayaHistoric Properties,New Construction,Office/Retail News & Information,Real Estate News,Redevelopment & Reconstruction,All,Tokyo

Nihonbashi redevelopment 3

On November 13, Mitsui Fudosan announced that they have started construction on the Nihonbashi 2 Chome District Redevelopment Project. This redevelopment forms an important part of the second stage of the Nihonbashi Revitalisation Plan.

The 2.6 hectare site includes the historic Nihonbashi Takashimaya Department Store. The important cultural property was built in 1933 and will be retained as part of the new development. The rooftop terrace and gardens will be upgraded and expanded to cover a 6,000 sqm space with footbridges connecting the rooftop to the neighboring office buildings.Read more

by Zoe Ward

Chinese buyers lured by Tokyo property prices and yields

November 26, 2014Foreign buyers of real estate in JapanReal Estate News,All,Tokyo

In mid-September, the CEO of a real estate brokerage held an investment seminar in a function room at the Shangri-La Hotel in Shanghai. The 40 attendees listened carefully to every word. This seminar was not about investing in Shanghai or Hong Kong, but was focused on the Japanese property market, in particular the areas in Tokyo and Osaka.

Promotional material handed out to attendees provided detailed information on the merits of investing in Japanese real estate, the purchase process and taxes, as well as information on ‘Abenomics’ and currency markets. With the recent weakening of the Yen, the pamphlet explained that a 30 million Yen apartment that would have cost 2.5 million Yuan in January 2012 could now be bought for 1.765 million Yuan (at January 2014 exchange rates). Note: As of November 24, it is the equivalent of 1.56 million Yuan.

Major companies right down to small agencies dealing only with Chinese buyers are busy organising property tours in Japan, with bus tours held almost every day.

A representative from a major brokerage said they have seen the number of inquiries jump by 1.5 times over the past 12 months and have attributed the strong interest to the falling Yen. Approximately half of the participants in their tours end up buying a property.

Taiwanese brokerage Sinyi plan to double their presence in Japan next year. They have already sold 20 billion Yen (170 million USD) worth of real estate in the first 10 months of 2014 and are expecting to close 450 deals worth 31 billion Yen in 2015.

An unnamed source in the the Nikkei Asian Review suggested that Taiwanese agencies could sell between 50 ~ 60 billion Yen (423 ~ 508 million USD) worth of Japanese real estate in 2014. This is still a small figure when compared to other destinations for Chinese money, such as the US where Chinese citizens bought 22 billion USD worth of homes in 2014.

What makes Tokyo appealing?Read more

by Zoe Ward

Dai-ichi and Generali to invest in residential properties in Tokyo

November 25, 2014Real Estate News,All,Tokyo

The Dai-ichi Life Insurance Company and Italian insurance company Generali have joined forces to acquire residential rental buildings in Tokyo. With current government bonds offering low yields (1.2% for 20-year bonds), the insurance giants are looking at diversification their portfolio. This will be Generali’s first real estate investment in the Asia region.

The two companies have formed a joint private placement fund targeting residential buildings in Tokyo that meet the following:

Less than 15 years old
Occupancy rates over 90%
Apartments catering to singles and DINKS
Buildings containing studios ~ 2-bedroom apartments
In locations with good transport and less than 10 minutes walk from the nearest station
Studio apartments that rent for around 100,000 Yen/month, or apartments for DINKS that rent for under 150,000 Yen/month

They are seeking gross yields over 6.6% with depreciated returns in the 3% range.

by Zoe Ward

Secondhand apartment prices in October 2014 - Tokyo Kantei

November 24, 2014Real Estate News,Market Information,All,Osaka,Nagoya,Tokyo

Apartment price Japan October 2014

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 42,560,000 Yen in October, up 0.9% from the previous month and up 4.7% from last year. Asking prices have increased by 8.1% over the past 2 years. The average building age was 22.3 years.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 60,180,000 Yen, up 1.7% from the previous month and up 10.3% from last year. The average price has increased by 18.0% over the past 2 years. The average building age was 21.7 years.Read more

by Zoe Ward