Year-on-year increase in Tokyo office rent for first time since 2008
According to Miki Shoji’s Office Report, the average office rent in Tokyo’s central five business areas (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in May had increased by 0.21% from 12 months prior. This is the first time since December 2008 that office rents had seen a year-on-year increase. It is also the fifth month in a row to see a month-on-month increase, indicating a turnaround in market conditions.
Landlord, Mitsubishi Jisho, have already hiked up the rent for some existing office tenants by 5 ~ 10%, and new tenants are being faced with rents that are 10 ~ 20% higher than they were in 2012.Read more
3 Arrested for Fukushima land scam
Three men from Tokyo have been arrested after after being suspected of selling off otherwise worthless forestry to buyers at over 1,000 times the actual market value.
In 2013, a woman in her 70s from Aichi Prefecture paid the men 16 million Yen (157,000 USD) in cash for a little over 500 sqm of forestry after they told her that she could profit from a rise in land value as there were plans to redevelop the land into an airfield to aid in the reconstruction of the disaster-hit areas. There were no airfield plans and the actual value of the land sold was closer to 16,000 Yen (157 USD).Read more
Japan's hot spring towns could be hit hard by new building safety regulations
Since November 2013, large-scale buildings, such as hotels and hospitals, built to the old earthquake-resistant building codes (called ‘kyu-taishin’) are obligated to carry out building inspections to determine their level of earthquake-resistance.
Inspections must be carried out by the end of 2015, after which the results will be made public.
Owners and operators of hot-spring resorts and inns are worried that these requirements could spell the end for their businesses. Towns in these onsen areas that rely on the tourist trade are also worried that this could have a direct impact on their local economy.Read more
Govt relaxes rules on building demolition voting rights and floor-area-ratios
The Japanese House of Councillors have voted in favour and passed a revision to the apartment redevelopment law which will now allow an apartment building association to sell their building and land with approval from 80% of the apartment owners, rather than the previous requirement of 100%.
In addition, the maximum allowable floor-area-ratio (yosekiritsu) will be relaxed.
These changes will hopefully encourage the redevelopment of ageing and potentially dangerous buildings that do not meet current earthquake-resistant standards.Read more
May rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,621 Yen/sqm in May, down 0.6% from the previous month but up 3.6% from last year. This is the first time in three months that the month-on-month change in rent has declined. The average apartment size was 59.17 sqm and the average building age was 18.4 years.
The average rent in Tokyo’s 23-ku was 3,197 Yen/sqm, down 0.2% from the previous month but up 3.6% from last year. This is the first time in six months to see a month-on-month drop in rent. The average apartment size was 56.28 sqm and the average building age was 16.5 years.Read more