Residential yields and vacancy rates in Minato-ku - July 2014
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in July was 5.2%, down 0.1 points from last month and down 0.8 points from July 2013. The average gross yield across Tokyo was 7.1%, down 0.1 points from last month and down 0.9 points from last year.
The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.
The average asking price of a secondhand apartment in Minato-ku was 785,957 Yen as of July 1, down 0.86% from June. The price growth seen in 2013 appears to have stalled and asking prices have started to decline slightly. The average asking price for land was 1,250,303 Yen/sqm, up 5.9% from last month.Read more
Tokyo’s bayside islands struggling with apartment and population boom
Residents in Tokyo’s bayside islands in Chuo-ku and Koto-ku are growing increasingly concerned about whether the current transport infrastructure and schools can cope with the growing population. Over the past several years, the area has been undergoing a transformation from what was once heavy industrial areas and shipyards into islands crowded with high-rise residential towers.
The development boom is not the direct result of the coming Olympic games, although the announcement did lead to a flurry of sales from buyers excited by the news.
The Athlete’s Village is expected to be built on Harumi Island - about 1 kilometre from Kachidoki Station on the Oedo Line. It will need to house approximately 17,000 people for the Olympic games, with the housing converted for either rental or sale post-games. Read more
Park Mansion Mita Tsunamachi to go on sale this month
Mitsui's latest development - Park Mansion Mita Tsunamachi The Forest - goes on sale at the end of this month. Although prices have yet to be officially announced, this could be the most expensive condominium to go on sale in Tokyo this year. The model room was opened to the public over the weekend, but we had a sneak peak last week.
The 11-storey building is currently under construction on a large 6,100 sqm site directly south of the Australian Embassy. It is directly across the street from the gardens of the historic members-only Tsunamachi Mitsui Club as well as Mitsui's very first Park Mansion building - Mita Tsunamachi Park Mansion (1971).
About the model room
The 167 sqm (1,797 sqft) 1-Bedroom room is filled with optional extras and non-standard finishes. The original plan for this apartment is two bedrooms, one bathroom and a study. In addition this apartment, along with two others, also have private 'atelier' rooms on the 10th floor. The atelier that comes with this particular apartment is 35 sqm and has a mini kitchen, toilet, shower room and a 21 sqm roof terrace. Perfect for a home office, man cave or guest room.Read more
Kobe forcibly demolishes condemned building
The Kobe City Government began the forced demolition of a dilapidated and abandoned building in Futatabisujicho, Chuo-ku in May. This is the second time since 2010 that the city has carried out a forced demolition.
The 2-storey wood-framed building was built sometime in the 1950s ~ 1960s. The exterior walls were cracked and the building was beginning to collapse. Nearby residents were concerned that it could collapse and damage neighbouring homes and petitioned the city in 2010 to take action.
The city tried to contact the owners - one of whom had already died - but the surviving owner ignored all of the city’s correspondence and requests. The city eventually decided to carry out the demolition without the owner’s permission due to the hazard posed by the building. The surviving owner will be billed for 50% of the 1.4 million Yen in demolition costs.
According to recent estimates, there are over 90 buildings in Kobe City that are deemed hazardous.
The Building Standards Act has provisions which allow the forced demolition of privately-owned homes and buildings if they are deemed to pose a danger to the community and the owners ignore requests to take action.
Source: The Sankei Shimbun, May 21, 2014.
Vacancy rates by apartment building in Tokyo – June
The following is a list of apartment buildings in Tokyo and their estimated vacancy rates in June:
Development of row houses in Tokyo creating issues for residents and neighbours
Setagaya-ku has been seeing a rise in the number of multi-storey row houses being built on flagpole or battle-axe shaped blocks of land. Although an apartment building cannot be built on such blocks of land, developers can get around this rule by building terrace or row houses which do not fall under the definition of a ‘multi-unit dwelling’. Surrounding residents are concerned by the loophole as the densely packed homes could help spread a fire due to the difficult access for firetrucks.
Flagpole blocks of land usually have a long and narrow driveway via the road which leads to the building at the rear. Subdividing of larger blocks of land over the years has led to a number of these properties, many of which only have a 2-metre wide street frontage (the minimum allowed).