August rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,561 Yen/sqm in August, up 0.1% from the previous month and up 0.5% from last year. The average apartment size was 59.71 sqm and the average building age was 19.2 years.
The average rent in Tokyo’s 23-ku was 3,166 Yen/sqm, down 0.3% from the previous month but up 2.3% from last year. The average apartment size was 56.65 sqm and the average building age was 17.5 years.Read more
Home insurance policies to be shortened to 10 years
From late 2015, Japan’s major home insurance companies will reduce the maximum insurance policy term from 36 years to 10 years.
Home buyers looking to take out a mortgage will have fewer insurance companies to choose from as lenders require the borrower to obtain insurance coverage for the full term of the loan.
Major insurers Sompo Japan Nipponkoa Insurance and Mitsui Sumitomo Insurance will limit policies to 10 years from October 2015. They will continue to honour any policies in place before the deadline.
Home insurance, which is typically called fire insurance, covers against damage from fire, strong wind, snowfall, flood and landslides. While it is possible to obtain coverage on a yearly basis, many choose to take out insurance for the maximum term.
The reason for the shorter term is due to the recent increase in abnormal weather such as heavy rainfall and other natural disasters which have led to a rise in insurance payouts.
Insurance premiums for residential properties are also set to rise next year.
Sources:
47 News, September 14, 2014.
The Sankei Shimbun, September 14, 2014.
Office vacancy rates in August 2014 - Miki Shoji
According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 6.08% in August, down 0.18 points from the previous month and down 2.14 points from last year.
The vacancy rate in brand new office buildings was 18.17%, up 0.76 points from the previous month and up 0.24 points from last year.Read more
New apartment prices in Tokyo up 26%
According to the Real Estate Economic Institute, 2,110 brand new apartments were released for sale in greater Tokyo in August, down 50.0% from the previous month and down 49.1% from last year. This is the 7th month in a row to see a year-on-year drop in supply.
1,469 apartments were sold, making the contract rate 69.6%. This is down 14.1 points from the previous month and down 11.9 points from last year. This is the first time the contract rate has fallen below 70% in 19 months. A contract rate over 70% usually indicates positive market conditions.
The average new apartment price was 56,850,000 Yen, up 2.8% from the previous month and up 18.5% from last year.
The average price per square meter was 775,000 Yen, up 0.5% from the previous month and up 14.5% from last year.
212 apartments in high-rise buildings (over 20-storeys) were offered for sale, down 86.2% from the previous month and down 78.6% from last year. The contract rate was 50.9%, down 42.6 points from the previous month and down 34.3 points from last year.Read more
Mori Trust buys Meguro Gajoen despite ongoing lawsuit
In August, it was announced that Mori Trust had acquired Meguro Gajoen from Loan Star Funds for approximately 130 billion Yen. Singapore’s GIC was previously in talks to purchase the property for 134 billion Yen but backed out due to concerns over a legal dispute brought up by the original landholders.
Meguro Gajoen is a wedding hall, hotel and office building complex located 250 meters west of Meguro Station in Tokyo. Mori Trust acquired a large majority of the land (37,000 sqm) as well as the following five buildings with a total floor area of 150,000 sqm:Read more