Revision to condominium redevelopment law could unlock potential development sites

October 28, 2014Real Estate News,Redevelopment & Reconstruction,All

A revision to the Act on Facilitation of Reconstruction of Condominiums is scheduled to be introduced from December that will reduce the voting ratio to sell a building and land. For buyers of brand new apartments, this news might seem insignificant, but this new amendment could influence the supply of new apartments in the future.

The Act was introduced in 2002 to encourage the redevelopment of old apartment buildings. Currently, a minimum of 80% of apartment owners must agree in order for a building to be reconstructed. For a building and land to be sold, however, the current act requires 100% of owners to be in agreement. The revision in December will reduce this to 80% for buildings built before 1981 to the older earthquake codes (called ‘kyu-taishin).

Of the 5,900,000 apartments across Japan, 1,060,000 (20%) are in ‘kyu-taishin’ buildings.

The number of condominium redevelopments in Japan is quite small. According to the Ministry of Land, Infrastructure, Transport and Tourism, there were only 183 buildings containing 14,000 apartments nationwide that were redeveloped as of April 2013.Read more

by Zoe Ward

Major redevelopment planned for Yaesu district

October 27, 2014Yaesu TokyoNew Construction,Real Estate News,Redevelopment & Reconstruction,All,Tokyo

Yaesu Tokyo 1

In 2015, Mitsui Fudosan and Tokyo Tatemono will begin several large-scale redevelopment projects for the Yaesu district to the east of Tokyo Station. The project will include three buildings containing apartments, offices, retail space, education and cultural facilities.

Planning approval is expected to be announced next year. It is anticipated that the project will qualify for an allowance to the floor space index, which would a total floor area up to 1 million sqm (10.7 million sqft).

One of the features will be an underground bus terminal. While the Marunouchi district to the west of Tokyo Station has seen some very large redevelopment projects over the past few years, the Yaesu area has been lagging behind. The bus terminal currently located at the Yaesu Exit at Tokyo Station is relatively inconvenient, especially for passengers transferring to trains. By locating the terminal underground, it will offer direct access to the underground station area.Read more

by Zoe Ward

Secondhand apartment prices in September 2014 - Tokyo Kantei

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

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 42,160,000 Yen in September, up 0.5% from the previous month and up 4.3% from last year. The average apartment age was 22.5 years.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 59,160,000 Yen, up 1.0% from the previous month and up 9.5% from last year. The average apartment age was 21.8 years.

The average price across greater Tokyo was 28,230,000 Yen, up 0.3% from the previous month and up 1.2% from last year. The average apartment age was 21.8 years.Read more

by Zoe Ward

Tokyo Star Bank considering home loans for wealthy Taiwanese

October 23, 2014Foreign buyers of real estate in JapanReal Estate News,All,Tokyo,Home Loans / Mortgages

In an interview with the Sankei Shimbun on October 20, Mr. Pin-kung Chiang, Chairman of the Board at Tokyo Star Bank, mentioned that the bank was considering offering low-interest home loans to wealthy Taiwanese for the purchase of real estate in Japan.

While Taiwan has seen steep increases in home prices, the Japanese property market has remained relatively stable for the past 20 years. With the weakening Yen and 2020 Summer Olylmpics, Taiwanese are becoming more and more attracted to real estate in Tokyo, particularly high-rise apartments. Mr. Chiang said that buyers are not only interested in properties for investment, but are also looking at homes to use as a base when they visit Tokyo.

Source: The Sankei Shimbun, October 21, 2014.

by Zoe Ward

September rental data - Tokyo Kantei

October 22, 2014Tokyo rental marketReal Estate News,Rental Market,Market Information,All,Osaka,Nagoya,Tokyo

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,575 Yen/sqm in September, up 0.5% from the previous month and up 1.2% from last year. The average apartment size was 60.01 sqm and the average building age was 19.3 years.

The average rent in Tokyo’s 23-ku was 3,207 Yen/sqm, up 1.3% from the previous month and up 3.6% from last year. The average apartment size was 57.02 sqm and the average building age was 17.4 years.Read more

by Zoe Ward

Signs of life for vacant site between Daikanyama and Nakameguro

October 21, 2014Daikanyama,meguro,Shibuya,Kamimeguro 1 Chome ProjectLand,New Construction,Real Estate News,Redevelopment & Reconstruction,All,Tokyo

Kamimeguro 1 Chome Project 5

The large and vacant plot of land located between Daikanyama and Nakameguro may finally see some activity as the Tokyo Metropolitan Government and Meguro Ward have announced that they are seeking tenders from developers for the 8,500 sqm site.

The land was previously the site of lodgings for the Japanese National Railway Settlement Corporation (JNRSC). The property was acquired by the Tokyo Government and Meguro Ward in 1995 for approximately 6.4 billion Yen. Initial plans were for an aged-care facility and public housing.Read more

by Zoe Ward

Supply of new apartments in September down 44%

October 20, 2014New Construction,Real Estate News,Market Information,All,Tokyo

According to the Real Estate Economic Institute, 3,336 brand new apartments were released for sale in greater Tokyo in September, up 58.1% from the previous month but down 44.1% from last year. 2,388 apartments were sold, making the contract rate 71.6%. This is an increase of 2.0 points from the previous month but is a drop of 12.0 points from last year.

The average new apartment price was 47,640,000 Yen, down 16.2% from the previous month and down 5.6% from last year. The average price per square meter was 665,000 Yen, down 14.2% from the previous month and down 6.6% from last year.

411 apartments in high-rise buildings (over 20-storeys) were offered for sale, up 93.9% from the previous month but down 78.9% from last year. The contract rate was 78.3%, up 27.4 points from the previous month but down 11.6 points from last year.

Approximately 3,500 apartments are expected to be released for sale in October, which is similar to the 3,506 apartments released for sale in October 2013.Read more

by Zoe Ward