Secondhand apartment prices in July 2014 - Tokyo Kantei
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 41,740,000 Yen in July, up 0.3% from the previous month and up 4.7% from last year. The average apartment age was 22.3 years.
In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 58,040,000 Yen, up 0.8% from the previous month and up 8.9% from last year. The average apartment age was 22.2 years.
The average price across greater Tokyo was 28,250,000 Yen, down 0.2% from the previous month but up 2.2% from last year. The average building age was 21.6 years.Read more
Proposed revision to taxes to encourage removal of abandoned homes
The Japanese government is considering a revision to the fixed asset tax code in order to encourage the removal of dilapidated and abandoned homes.
Currently, the annual fixed asset tax on land is reduced to a sixth of its original level if there is an existing house on the land. This reduction was introduced in 1973 when Japan was going through a period of rapid growth as a means to encourage the conversion of agricultural land into housing. The reduction also applies to empty houses, so demolishing a house would mean a higher tax bill. Read more
Toranomon 2 Chome Redevelopment Project
On July 15, the Tokyo Metropolitan Government approved the re-development plans for the Toranomon Hospital and National Printing Bureau site in Minato-ku.
The 145.6 billion Yen project will include a 19-storey hospital building and a 179m tall, 36-storey commercial building. The hospital building will be rebuilt from 2015 ~ 2018, with the office tower to be built between 2019 ~ 2022. The entire project is expected to be completed by 2024.
There are a number of major redevelopment projects in the Toranomon area, including the recently completed Toranomon Hills, the future redevelopment of Hotel Okura, the redevelopment of the Toranomon Pastoral Building (Toranomon 4 Chome Project) and the Akasaka 1 Chome Redevelopment.Read more
July rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,558 Yen/sqm in July, down 2.0% from the previous month but up 1.0% from last year. The average apartment size was 59.92 sqm and the average building age was 18.9 years.
The average rent in Tokyo’s 23-ku was 3,174 Yen/sqm, showing no change from the previous month and up 2.5% from last year. The average apartment size was 56.38 sqm and the average building age was 17.1 years.Read more
Office vacancy rates in July 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 6.20% in July, down 0.25 points from the previous month and down 2.09 points from last year. This is the lowest level seen since March 2009 when vacancy rates were 6.05%.
The vacancy rate in brand new buildings was 17.41%, down 0.68 points from the previous month but up 4.69 points from last year.
The following office buildings were completed in July:
- Mercros Building, Nihonbashi, Chuo-ku: 9 floors; 6,980 sqm floorspace.
- Tamachi Front Building, Shiba, Minato-ku: 9 floors; 5,730 sqm floorspace.
- PMO Shiba Koen, Minato-ku: 8 floors; 3,500 sqm floorspace.
New apartment prices in greater Tokyo at 22-year high
According to the Real Estate Economic Institute, 4,222 brand new apartments were released for sale in greater Tokyo in July, up 20.5% from the previous month but down 20.4% from last year. This is the 6th month in a row to see a year-on-year decline in supply. Developers are taking caution to limit supply amidst a drop in demand following the increase in consumption tax and a steep rise in construction costs. According to Nomura Securities, the average cost of construction in May 2014 was 187,000 Yen/sqm - the highest level seen since 1993.
3,532 apartments were sold, making the contract rate 83.6%. This is 7.1 points higher than the previous month and 2.1 points higher than last year.
The average new apartment price was 55,320,000 Yen, up 14.5% from the previous month and up 7.9% from last year. This is the first time that prices have exceeded 55 million Yen since November 1992.
The average price per square meter was 771,000 Yen, up 12.9% from the previous month and up 6.1% from last year.
1,533 apartments in 18 high-rise buildings (over 20-storeys) were offered for sale, up 241% from the previous month but down 1.8% from last year. The contract rate was 93.5%.
Approximately 2,500 new apartments are expected to be released for sale in August. The institute has revised its estimated downwards and now expects between 46,000 ~ 48,000 apartments to be supplied in 2014. Read more